There are many forex strategies out there and some of them are profitable, some of them are out dated because trading conditions change. That is why you need a very firm and strong foundation to even base your strategy on. Some traders build their own strategies and some use whatever that has been proven to work or generate profits. A good working strategy is what everybody wants, because it is believed that if you have a good strategy you will make good money. There are a few factors to look when choosing a strategy that is suitable for you.
Swing trading – This is a type of trading where you have to hold your position over a week or more, this is a trading style suitable for traders that are usually busy during the day. Some may be busy with work or any business one may be interested in. This is a very polite way of trading and of course it needs a lot patience to even reach your targets.
Intra-day trading – This trading style is usually employed by the full-time traders who have the whole day on their hands and their trading room. This type of trading is one of the most popular used in the industry as many traders like hit their targets soon rather than later, where in most cases they hold a trade for less than 24 hours.
Scalping – Scalpers are type of traders who hit their targets in matter of minutes. Most of them enter multiple trades at once that would not last for long until they hit their profit target, they usually trade on lower timeframes in most cases like 15 minutes, 5 minutes or less.
If you are choosing a strategy you should make sure that you keep in mind the flexibility of it in order to match it with your daily routine or lifestyle. Some strategies only works best with certain timeframes, so if you are a buys person during the day, you should make sure that you can swing with your strategy or use a few minutes of your day to scalp the market.
Trading is mostly psychological than anything, yes you have to know the right skill to be profitable but mostly after you have studied your skill and understands it clearly. The most of the hard work starts when you have to study yourself. Most of the traders have the strategy that works but they tend to do unnecessary things when trading. You must know a few of these:
1. Know your win rate – You can take ten trades per week and know how many do you win on average, you can repeat this process until you see consistent results and you will know where to improve.
2. Do not rush to enter a trade – In most cases traders will enter a trade and tend to make changes when they see a negative floating profit. It is better to wait for high probable setups than to enter early and be in drawdown for days.
3. Do not disturb a trade – When you have set your stop loss and take profit do not disturb a trade.
4. Have an entry strategy, trade maintenance strategy and exit strategy – Most traders only have an entry strategy and they do not have an exit and maintaining a trade strategy. Those two are as important as entry strategy.
5. Minimise the pairs you trade – It is advisable that you trade a few pairs at the time to keep your mind highly focused on good setups at that particular time.
All these above-mentioned points may help anyone with any trading strategy because in most cases the technical part is not a problem but the psychological that needs more attention than anything else. Download WikiFX app for more valuable content to help you with your trading journey.
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