trendline-trading-strategy-pdf-fundamentals-explained
I have already 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 has somehow deterred some individuals from trading Forex specially when they are not prepared to have proper education to learn to trade well. On another hand, many people are determined to give Forex trading a decide to try, as they have been told it is 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 didn't work.
With due respect, I submit that trading Forex can be quite a successful venture but we must treat it as a serious business and not just a quick to be rich scheme. What this implies is that people must understand the different segments of a Forex trading business. These are trading strategies, money management and trading psychology. In this short article, I will give attention to the very first segment - trading strategy. most-noticeable-heiken-ashi-trading-strategy-pdf
I believe it is fair to say that most Forex traders will first learn trading strategies in this business before they consider another two segments. However, as many people take the view that Forex trading is a quick to be rich scheme, they don't have the patience to accomplish the necessary work. Instead, their primary goal is to look for the most profitable strategy so that they may make money in the shortest time possible. My question is whether there is such a thing called the most profitable trading strategy. I am aware by asking this question, I'm inviting a debate here since there are 1000s of Forex strategies for sale in the market. All of you will produce your own personal opinion. If I could, let me 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 understand what I'm going to say below will disappoint a few of you - there is no such thing called the most profitable trading strategy. As traders, our job would be to begin to see the chart of a currency pair and decide if it is in a trend. If so, we have to utilize trend strategies because it generally does not make sense to utilize trading range strategies. Conversely, if the currency pair has formed a trading range, it generally does not make sense to utilize any trend strategies. Therefore, we have to utilize trading range strategies. In short, a trader will need to learn at least one trend strategy and one trading range strategy.
A few of my trading buddies prefer to trade the Forex market predicated on news. What they do is to look for the news to trade and consider what sort of 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 an information on a lower time frame.
Finally, exactly why breakout strategies exist is since there are traders who prefer to take a position on a currency pair after it breaks out of a trading range.
As you can see, different traders will have different trading preference. The very first thing I believe you must do is to find out your own personal preference. Are you someone who's ultra conservative and you may not prefer to risk much in a trade? Or are you someone who's aggressive and it is okay for you really to deal with higher risk investments?
Even though I mentioned news trading strategies here, I don't trade any one of them personally because they don't fit my trading personality. I'm just about focusing on both trend strategies and trading range strategies. trendline-trading-strategy-pdf-fundamentals-explained
Here's another important point for you really to consider if you are learning any strategy from another person. I'm sure anyone from whom you learn will have their own trading rules. You've to ensure that these rules fit your own personal trading personality. If not, it is likely this strategy won't meet your needs even though it works for that person. If you choose to tweak these trading rules to accommodate your preference, you must be prepared to spend some time on back-testing and forward-testing the modified strategy to ensure that it generates very good results consistently.
I am hoping you recognize that in order to be a successful Forex trader, you will never shop around for the so-called most profitable strategy because it generally does not exist. You will discover a technique that fits your trading personality if you are prepared to spend time to research and test the strategy. And when this strategy works for you, you have the right to say that this is a profitable strategy for you.
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