I have been hearing some individuals saying that Forex trading is risky because a person can lose a bundle in trading Forex. On one hand, this can be good news because it has somehow deterred some folks from trading Forex especially when they are not prepared to obtain proper education to learn to trade well. On the other hand, some individuals are determined to offer Forex trading a try, as they've 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 didn't work.
With due respect, I submit that trading Forex can be a successful venture but we ought to treat it as a serious business and not a quick to be rich scheme. What this means is that people must understand the different segments of a Forex trading business. They are trading strategies, money management and trading psychology. In this article, I will focus on the very first segment - trading strategy. most-noticeable-heiken-ashi-trading-strategy-pdf
I believe it is fair to express 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 don't have the patience to accomplish the required work. Instead, their primary goal is to consider the most profitable strategy so that they may make profit the shortest time possible. My question is whether there is any such thing called the most profitable trading strategy. I am aware by asking this question, I'm inviting a debate here since there are thousands of Forex strategies obtainable in the market. Each of you will develop your own personal opinion. If I might, 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 very well what I'm going to express below will disappoint a number of you - there is no such thing called the most profitable trading strategy. As traders, our job is to see the chart of a currency pair and decide if it is in a trend. If so, we've to utilize trend strategies because it generally does not seem sensible to use trading range strategies. Conversely, if the currency pair has formed a trading range, it generally does not seem sensible to utilize any trend strategies. Therefore, we've to use trading range strategies. In a nutshell, a trader must learn a minumum of one trend strategy and one trading range strategy.
A number of my trading buddies prefer to trade the Forex market predicated on news. What they do is to consider the headlines to trade and consider what sort of particular currency pair will react after the announcement. Typically, news trading strategies will be a quick scalp on a currency pair and derive from a graph on a lowered time frame.
Finally, the reason why breakout strategies exist is because there are traders who prefer to take a position on a currency pair after it breaks out of a trading range.
As you will see, different traders could have different trading preference. The first thing I think you need to do is to discover your own personal preference. Are you currently someone who is ultra conservative and you do not prefer to risk much in a trade? Or are you currently someone who is aggressive and it is okay for you yourself to deal with higher risk investments?
Even though I mentioned news trading strategies here, I do not trade any of them personally because they don't fit my trading personality. I'm pretty much 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 are learning any strategy from another person. I'm sure the individual from whom you learn could have their own trading rules. You have to ensure these rules fit your own personal trading personality. Or even, it is likely this strategy won't 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 very good results consistently.
I am hoping you understand that to be able to be a successful Forex trader, you will never look around for the so-called most profitable strategy because it generally does not exist. You will find a technique that matches 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 personally, you've the proper to express that this can be a profitable technique for you.