Learn Energies Trend Following Strategies

A trader must create a energies strategy which they stick to when trading the online energies market. A trader must have the discipline to follow the rules of their energies strategy at all times. That is why it is better to come up with trading strategies which are profitable - profitable energies systems will be much easier to follow and stick to. This is because a trader knows that by following the rules of their energies system they will be successful.

A carefully designed trading strategy which has been back tested & proven to produce profitable results is one of the keys to becoming successful when trading the energies market. This type of strategy will make it easier for the trader to follow the rules of their energies strategy because they already know that the trading strategy is profitable, therefore maintaining the discipline to continue following the energies system will be much easier.

Successful energies strategies will also include:

1. Energies money management guidelines

2.Energies Trading Psychology Mindset

These two will greatly improve the success of any energies trading system.

However, Let us look at energies price action strategy before explaining more about energies money management and energies psychology.

Energies Trend Following Strategies

Energies Trend following strategies are based on first of all determining the overall market trend, whether the energies market is moving upwards or it is moving downwards. After determining the energies market energies trend the trader will then only open trades in one direction.

Upward energies trend - in an upward energies trend energies prices keep moving up, and here the trader will keep opening buy energies trades.

Downward energies trend - in a downward trend energies prices keep moving down, and here the trader will keep opening sell energies trades.

There are various strategies of determining the energies market trends and the two most popular ones are:

Energies Trend lines - traders will draw energies trend line on the energies price chart to determine the current general market movement. Once the energies trend direction is determine a trader will then open energies trades once the energies price touches the trend line or when price is close to the trend line. The trader will only open trades in direction of the trend.

When markets form trends, the energies trend will have a lot of momentum and this momentum will mean that the energies prices will keep moving in that direction for a period of time that lasts for quite some time.

Trading the energies trend is one of the most profitable way to trade the energies market if a trader catches a energies trend that has already formed they can make a lot profit just by trading in direction of the trend and the longer the energies trend stays the longer a trader can continue to make profits. Some major energies trend may last for years and these can prove to be the most profitable trading setups especially when they last for years.

Moving Averages Strategies - Another energies trend identification strategy is the use of the 20 day moving average, and when prices are above this moving average the energies market is bullish and if energies prices are below this moving average the energies market is bearish.

The 50 day moving average is also used for determining the medium term energies trend, while the 200 day moving average is used to determine the long term energies trend of the energies market.

Traders can also use two moving averages to form the moving average crossover method, this method will have a shorter period moving average and a longer term moving average and these two will be use to determine the current market trend. For example a trader can use the 5 day and 7 day moving averages, and for this strategy the energies trend is upwards if both these moving averages are moving in the upward direction and the energies trend will be down if both these two moving averages are moving downwards.

This system will indicate the energies trend is about to change one these two line cross over each other. This signal will be a god time to close trades if a trader has open trades.

Energies Trading Strategies Tips

Once a trader has come up with their energies strategy, they should also include the following so as to make their energies strategy more successful.

1.Energies Trading Money Management Rules

2.Energies Trading Psychology

Energy Trading Money Management Rules

Energies money management guidelines should be part of your energies strategy - these rules will help you as a trader to manage risk. This means that you will use the two rules of energies money management - these are risk : reward ratio and drawdown reducing method when placing your energies trades to determine the lot size that you will open in the energies market. The most popular energies money management rule use in energies and the one that you should also add to your trading plan is the rule that says a trader should never risk more than 2 % of account balance on any one single energies trade.

To learn more about these two energies money management guidelines, traders should read the energies money management tutorial that is on the learn energies lessons section of this web site under the energies key concepts lessons.

Energies Trading Psychology Mindset

In order to become successful when trading the energies market a trader has to learn about energies psychology. The energies psychology or mindset that is required to become successful in energies is one that avoids the emotions of fear and greed while trading the energies market and is a mindset of total discipline that a trader will follow all their trading rules and their energies strategy and only trade with signals that are generated by their energies strategy. With discipline a trader will not trade unless their energies strategy gives a trading signal. A trader will have the mindset of only following their energies system 100 % all the time without second guessing the energies system. A disciplined trader will also not place trades in energies market just because the energies market has started to move up or down, instead a trader will wait for a trading signal to trade to be generated by their energies trading strategy.

In order to study more about energies psychology and how to manage emotions while trading the online energies market a trader can read the energies psychology tutorials from the learn energies lessons section of this web site under the energies key concepts guides.