I have been hearing some individuals saying that Forex trading is risky because a person can lose a fortune in trading Forex. On one hand, this can be good news because it's somehow deterred some individuals from trading Forex particularly when they are not prepared to obtain proper education to discover ways to trade well. On the other hand, some individuals decided to offer Forex trading a take to, as they have been told it is really a quick to be rich scheme. Unfortunately, they lost their momentum because they might not find any profitable trading strategies and thus, they concluded that Forex trading did not work.
With due respect, I submit that trading Forex can be quite a successful venture but we should treat it as a significant business and not a quick to be rich scheme. What this signifies is that individuals must understand the various segments of a Forex trading business. These are trading strategies, money management and trading psychology. In this article, I'll focus on 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 the 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 complete the required work. Instead, their primary goal is to consider the most profitable strategy so that they'll make money in the shortest time possible. My question is whether there is any such thing called the most profitable trading strategy. I understand by asking this question, I'm inviting a debate here since there are a large number of Forex strategies for sale in the market. Every one of you'll come up with your personal opinion. If I may, 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 understand what I'm going to say below will disappoint some of you - there is no such thing called 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 have to apply trend strategies because it does not seem sensible to use trading range strategies. Conversely, if the currency pair has formed a trading range, it does not seem sensible to apply any trend strategies. Therefore, we have to use trading range strategies. Simply speaking, a trader must learn a minumum of one trend strategy and one trading range strategy.
A number of my trading buddies would rather trade the Forex market based on news. What they do is to consider the news headlines to trade and consider what sort of particular currency pair will react following the announcement. Typically, news trading strategies would have been a quick scalp on a currency pair and are based on a graph on a diminished time frame.
Finally, the reason why breakout strategies exist is because there are traders who would rather 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. First thing I think you must do is to learn your personal preference. Have you been someone who is ultra conservative and you do not want to risk much in a trade? Or are you 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 do not trade some of them personally because they do not fit my trading personality. I'm more or less emphasizing both trend strategies and trading range strategies. trendline-trading-strategy-pdf-fundamentals-explained
Here's 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 will have his own trading rules. You have to ensure that these rules fit your personal trading personality. Or even, it is likely that strategy won't do the job even though it works for that person. If you determine to tweak these trading rules to match your preference, you must be prepared to spend time on back-testing and forward-testing the modified strategy to ensure that it generates very good results consistently.
I hope you understand that in order to be a successful Forex trader, you'll never look around for the so-called most profitable strategy because it does not exist. You will find a technique that matches your trading personality if you should be prepared to pay time and energy to research and test the strategy. And when this strategy works for you, you've the right to say that this can be a profitable technique for you.You should delete all of this text and replace it with text of your own. You can modify any text on your page with the Text formatting tools at the top of the page. To add other content, use the Media and Add-ons tabs. If you'd like to change your style template click on Styles. To add or remove pages use the Pages tab.