So you think that you’ve got the winning strategy for forex trading. Have you found and tested your winning strategy yet? What you are doing not know is that there belongings you must note before fully placing money on your strategy.
These are points tested and tried by those who have come before you. Understand the principles behind them and you may well be on your way to trading success.
Think twice before day trading.
not many people get to achieve success at day trading. Most experts firmly believe that it does not work, because the volatility on such a short term varies a lot. You will be happier with extended-term trading ventures where chances of profit are dependable.
Fundamental or Technical?
Are you a fundamental or technical trader? Where does your strategy lay? It is hard to be both; combining the 2 paths and methodology is sometimes near impossible and at the most difficult. It would be easier to start out with a technical aspect of trading in your strategy. Not only wouldn’t it take into consideration human psychology, but it’ll even be easier to figure with.
Throw scientific theories away. (Take with this grain of salt)
Forex trading needs a good object and point of view. Nevertheless, when it comes together with your personal strategy, it must fit together with your assets, investments, and plans. That is why it is difficult to rely on scientific theories alone. If there was a 100% successful one, then why not all making millions?
The objective part of the equation should be the trading signals you need to use in determining your next move. Now you see that there’s balance within the tempering of your strategy.
You work in conjunction with your strategy. Are you both discipline din your tasks? The ego will get within the way of a successful trader. What you think that the market affects the planning of your trading plan. Be fair and reasonable and you’ll profit, being over your head and thinking greedily will get you nowhere but down.
Lastly, does one have absolute confidence together with your unique plan? Testing and backtesting with present parameters are important to urge that confidence. You may even want to start out with a little amount first, testing your strategy with as little risk as possible. When it starts working, resist the urge to vary it. Do not over complicate your details.
Hypothetical track records are unreliable.
These kinds of track records are just maintaining the normal currency track records. This is simply just too naive. Playing it safe will not always make you safe. Forex trading is far harder than choosing which currency record is safer. In the end, you have to make money right? Not make sure bets and not losing, but end up not gaining anything either.
Is your strategy designed to use stops conservatively?
Stops are there to your advantage. Use them. Most people place them immediately after a trade. If you think to hesitate a lot, you will end up taking more losses.
Simple and work Reasonably
The rules of your Forex trading strategy must be simple and needs a reasonable amount of work input from you. Too complex an idea and you would possibly lose sight of your own unique technique. Too much work will complicate it for you, clouding your judgment more.