I have already been hearing many people saying that Forex trading is risky must be person can lose a bundle in trading Forex. On a single hand, this might be good news because it has somehow deterred some folks from trading Forex especially when they're not prepared to get proper education to learn how to trade well. On the other hand, many people have decided to give Forex trading a take to, as they've 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 figured Forex trading did not work.
With due respect, I submit that trading Forex can be a successful venture but we should treat it as a significant business and not really a quick to be rich scheme. What this means is that people must understand different segments of a Forex trading business. These are trading strategies, money management and trading psychology. In this short article, I'll give attention to the first segment - trading strategy. most-noticeable-heiken-ashi-trading-strategy-pdf
I believe that it is fair to say that all Forex traders will first learn trading strategies in this business before they consider the other two segments. However, as many people 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 consider probably the most profitable strategy so that they may make profit the shortest time possible. My question is whether there's any such thing called probably the most profitable trading strategy. I know by asking this question, I am inviting a debate here since there are tens and thousands of Forex strategies for sale in the market. Every one of you'll come up with your own opinion. If I could, 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 am going to say below will disappoint a few of you - there's 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 is in a trend. If so, we have to utilize trend strategies because it doesn't seem sensible to utilize trading range strategies. Conversely, if the currency pair has formed a trading range, it doesn't seem sensible to utilize any trend strategies. Therefore, we have to utilize trading range strategies. Simply speaking, a trader must learn one or more trend strategy and one trading range strategy.
Some of my trading buddies choose to trade the Forex market centered on news. What they do is to consider the news to trade and consider what sort of particular currency pair will react following the announcement. Typically, news trading strategies is a quick scalp on a currency pair and derive from a chart on a lowered 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.
As you can see, different traders can have different trading preference. The first thing I believe you need to do is to learn your own preference. Have you been someone who is ultra conservative and you don't prefer to risk much in a trade? Or are you someone who is aggressive and it is fine for you to cope with higher risk investments?
Even though I mentioned news trading strategies here, I don't trade any of them personally because they do not fit my trading personality. I am pretty much focusing on both trend strategies and trading range strategies. trendline-trading-strategy-pdf-fundamentals-explained
Listed here is another important point for you to consider if you are learning any strategy from another person. I am sure the individual from whom you learn can have their own trading rules. You've to ensure these rules fit your own trading personality. Or even, it is probable this strategy will not work for you though it works for that person. If you determine to tweak these trading rules to match your preference, you need to anticipate to spend some time on back-testing and forward-testing the modified strategy to ensure it generates positive results consistently.
I am hoping you recognize that in order to be a successful Forex trader, you'll never shop around for the so-called most profitable strategy because it doesn't exist. You will discover a method that matches your trading personality if you are prepared to spend time to research and test the strategy. And when this strategy works for you, you've the best to say that this is a profitable strategy for you.