trading strategies


I have already been hearing some individuals saying that Forex trading is risky must be person can lose a bundle in trading Forex. Using one hand, this might be good news because it's somehow deterred some folks from trading Forex especially when they are not prepared to have proper education to learn how to trade well. On one other hand, some individuals have decided to offer Forex trading a try, as they have been told it is really a quick to be rich scheme. Unfortunately, they lost their momentum because they could not find any profitable trading strategies and thus, they concluded that Forex trading didn't work.

With due respect, I submit that trading Forex could be a successful venture but we must treat it as a critical business and not really 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 informative article, I will give attention to the very first segment - trading strategy.

I still find it fair to express that all Forex traders will first learn trading strategies in this business before they consider one other two segments. However, as some individuals take the view that Forex trading is really a quick to be rich scheme, they do not have the patience to accomplish the required work. Instead, their primary goal is to find 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 understand by asking this question, I'm inviting a debate here since there are tens of thousands of Forex strategies for sale in the market. Every one of you will develop your own opinion. If I could, allow me 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. option stock trading

I understand what I'm going to express below will disappoint some of you - there is no such thing called the most profitable trading strategy. As traders, our job is 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 apply trend strategies because it does not sound right to make use of trading range strategies. Conversely, if the currency pair has formed a trading range, it does not sound right to apply any trend strategies. Therefore, we've to make use of trading range strategies. In short, a trader will need to learn a minumum of one trend strategy and one trading range strategy.

Some of my trading buddies prefer to trade the Forex market centered on news. What they do is to find the headlines to trade and consider what sort of particular currency pair will react after the announcement. Typically, news trading strategies is a quick scalp on a currency pair and are based on a graph on a lower time frame.

Finally, the reason 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 could have different trading preference. The first thing I believe you should do is to find out your own preference. Are you someone who's ultra conservative and you do not like to risk much in a trade? Or are you currently someone who's aggressive and it is fine for you to deal with higher risk investments?

Even though I mentioned news trading strategies here, I do not trade some of them personally because they do not fit my trading personality. I'm more or less focusing on both trend strategies and trading range strategies. what are stock options

  • isted here is another important point for you to consider if you should be learning any strategy from another person. I'm sure the person from whom you learn could have their own trading rules. You've to make sure that these rules fit your own trading personality. Or even, it is likely that this strategy won't meet your needs although it works for that person. If you decide to tweak these trading rules to match your preference, you should anticipate to spending some time on back-testing and forward-testing the modified strategy to make sure that it generates very good results consistently.

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