trading strategies

trading strategies

I have been hearing many people saying that Forex trading is risky because a person can lose a lot of money in trading Forex. On one hand, this may be good news because it's somehow deterred some folks from trading Forex particularly when they're not prepared to obtain proper education to learn how to trade well. On one other hand, many people decided to give Forex trading a decide to try, as they have been told it is just a quick to be rich scheme. Unfortunately, they lost their momentum because they could not find any profitable trading strategies and thus, they figured Forex trading did not work.

With due respect, I submit that trading Forex could be a successful venture but we should treat it as a critical business and not just a quick to be rich scheme. What this implies is that we must understand the various segments of a Forex trading business. These are trading strategies, money management and trading psychology. In this information, I will concentrate on the initial segment - trading strategy. what are stock options

I believe that it is fair to express that most Forex traders will first learn trading strategies in this business before they consider one other two segments. However, as many people take the view that Forex trading is just a quick to be rich scheme, they cannot have the patience to complete the mandatory work. Instead, their primary goal is to find probably the most profitable strategy so that they may make profit the shortest time possible. My question is whether there is such a thing called probably the most profitable trading strategy. I understand by asking this question, I'm inviting a debate here since there are tens and thousands of Forex strategies obtainable in the market. Each of you will develop your own opinion. If I might, i'd like to first group all Forex trading strategies into four major categories: (i) trend strategies; (ii) trading range strategies; (iii) breakout strategies; and (iv) news trading strategies.

I know very well what I'm going to express below will disappoint a few of you - there is no such thing called probably the most profitable trading strategy. As traders, our job is always to start to see the chart of a currency pair and decide if it's in a trend. If that's the case, we've to utilize trend strategies because it generally does not seem sensible to utilize trading range strategies. Conversely, if the currency pair has formed a trading range, it generally does not seem sensible to utilize any trend strategies. Therefore, we've to utilize trading range strategies. Simply speaking, a trader will have to learn one or more trend strategy and one trading range strategy.

Some of my trading buddies choose to trade the Forex market predicated on news. What they do is to find the news headlines to trade and consider how a particular currency pair will react following the announcement. Typically, news trading strategies will be a quick scalp on a currency pair and are based on a graph on less time frame.

Finally, the reason why breakout strategies exist is because there are traders who choose to have a position on a currency pair after it breaks out of a trading range. trading strategies

As you will see, different traders could have different trading preference. The very first thing I think you need to do is to learn your own preference. Have you been someone who is ultra conservative and you don't want to risk much in a trade? Or have you been someone who is aggressive and it is okay for you yourself to cope with higher risk investments?

Even though I mentioned news trading strategies here, I don't trade some of them personally because they cannot fit my trading personality. I'm just about focusing on both trend strategies and trading range strategies.

Listed here is another important point for you yourself to consider if you should be learning any strategy from another person. I'm certain that anyone from whom you learn could have their own trading rules. You've to ensure that these rules fit your own trading personality. If not, it is probable that this strategy won't meet your needs even though it works for that person. If you decide to tweak these trading rules to suit your preference, you need to be prepared to spend time on back-testing and forward-testing the modified strategy to ensure that it generates good results consistently.

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