trendline-trading-strategy-pdf-fundamentals-explained
I have been hearing many people saying that Forex trading is risky because a person can lose a bundle in trading Forex. On one hand, this may be good news because it has somehow deterred some individuals from trading Forex especially when they are not prepared to obtain proper education to learn to trade well. On another hand, many people decided to offer Forex trading a take to, as they've been told it is just 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 didn't work.
With due respect, I submit that trading Forex can be a successful venture but we must treat it as a significant business and not just a quick to be rich scheme. What this means is that people must understand different segments of a Forex trading business. They are trading strategies, money management and trading psychology. In this article, I'll focus on the first segment - trading strategy. most-noticeable-heiken-ashi-trading-strategy-pdf
I still find it fair to say that all 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 just a quick to be rich scheme, they don't have the patience to complete the mandatory work. Instead, their primary goal is to look for the absolute most profitable strategy so they can make profit the shortest time possible. My question is whether there is any such thing called the absolute most profitable trading strategy. I am aware by asking this question, I'm inviting a debate here since there are thousands of Forex strategies available in the market. Every one of you'll develop your own 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 know what I'm going to say below will disappoint a number of you - there is no such thing called the absolute most profitable trading strategy. As traders, our job is always to begin to see the chart of a currency pair and decide if it's in a trend. If so, 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 a nutshell, a trader will have to 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 look for the headlines to trade and consider how a particular currency pair will react after the announcement. Typically, news trading strategies would have been a quick scalp on a currency pair and derive from an information on a lower time frame.
Finally, exactly why breakout strategies exist is because there are traders who would rather have a position on a currency pair after it breaks out of a trading range.
As you will see, different traders will have different trading preference. First thing I believe you must do is to find out your own preference. Have you been someone who's ultra conservative and you do not like to risk much in a trade? Or have you been someone who's 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 don't fit my trading personality. I'm pretty much concentrating on both trend strategies and trading range strategies. trendline-trading-strategy-pdf-fundamentals-explained
Here is another important point for you yourself to consider if you are learning any strategy from another person. I'm sure that the person from whom you learn will have their own trading rules. You've to ensure these rules fit your own trading personality. If not, it is probable that 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 must be prepared to spend time on back-testing and forward-testing the modified strategy to ensure it generates good results consistently.
I hope you realize that in order to be considered a successful Forex trader, you'll never look around for the so-called most profitable strategy because it does not exist. You will discover a technique that fits your trading personality if you are prepared to spend time for you to research and test the strategy. And when this strategy works for you, you have the best to say that this can be a profitable technique for you.
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