Trading Strategies for Portfolio Development
1. Identify Markets and Instruments
Choose a market that has high volatility but remains liquid (examples: forex, tech stocks, or crypto). Focus on instruments that you have mastered.
2. Use a Multi-Analysis Approach
Technical Analysis: Use indicators such as RSI, MACD, and Moving Average to identify entry and exit opportunities.
Fundamental Analysis: Make sure you understand the news or sentiment that affects the market. For example, financial reports, economic data, or policy announcements.
Market Sentiment: Follow trends and monitor global news that affects market volatility.
3. Short Term Strategy (Scalping/Day Trading)
Focus on small time frames (1-15 minutes).
Use Breakout strategy: Enter the market when the price breaks through a significant support/resistance level.
Set a minimum risk/reward ratio of 1:2 for each transaction.
4. Medium Term Strategy (Swing Trading)
Identify price patterns such as Head and Shoulders, Double Bottom, or Flag to determine entry points.
Use a time frame of 4 hours to 1 day to monitor price movements.
Take advantage of Fibonacci retracements to look for potential strong pullbacks.
5. Risk Management
Only use 2-5% of capital on one transaction.
Use Stop Loss to limit losses.
Make sure the portfolio is diversified to avoid excessive risk in one asset.
6. Optimize Leverage (If Used)
Use leverage carefully to increase profit potential. However, limit leverage to a level that is still under control, such as 1:10.
7. Record and Evaluate Performance
Create a Trading Journal to record each transaction (date, instrument, entry/exit point, results, and analysis).
Evaluate weekly to see patterns of success and failure.
8. Use Technology
Use trading bots or automated indicators to quickly identify opportunities.
Make sure your trading platform supports fast and lag-free execution.
9. Master Trading Psychology
Keep calm even if the market moves against your position.
Don't overtrade or get too confident after making big profits.
10. Focus on Capital Accumulation
Don't just look for big profits in one trade. Focus on accumulating small profits consistently.
Compound profits by increasing the lot or number of assets traded as capital grows.