trading strategies



I have now been hearing some individuals saying that Forex trading is risky because a person can lose a bundle in trading Forex. On a single hand, this may be good news because it has somehow deterred some people from trading Forex especially when they are not prepared to get proper education to learn how to trade well. On another hand, some individuals have decided to provide Forex trading a decide to try, as they've been told it is 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 didn't work.

With due respect, I submit that trading Forex could be a successful venture but we ought to treat it as a serious business and not a quick to be rich scheme. What this signifies is that people must understand the various segments of a Forex trading business. They're trading strategies, money management and trading psychology. In this information, I will concentrate on the first segment - trading strategy. what are stock options

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 some individuals take the view that Forex trading is a quick to be rich scheme, they cannot have the patience to complete the required 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's such a thing called the absolute most profitable trading strategy. I know by asking this question, I'm inviting a debate here since there are a large number of Forex strategies available in the market. All of you'll produce your own personal opinion. If I may, 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 know very well what I'm going to say below will disappoint a few of you - there's no such thing called the absolute most profitable trading strategy. As traders, our job is to begin to see the chart of a currency pair and decide when it is in a trend. If that's the case, we have to apply trend strategies because it doesn't make sense to utilize trading range strategies. Conversely, if the currency pair has formed a trading range, it doesn't make sense to apply any trend strategies. Therefore, we have to utilize trading range strategies. Simply speaking, 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 based on news. What they do is to look for 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 are derived from a graph on a lowered time frame.

Finally, the key reason why breakout strategies exist is since there are traders who prefer to have a position on a currency pair after it breaks out of a trading range. trading strategies

As you can see, different traders could have different trading preference. The first thing I believe you must do is to find out your own personal preference. Are you currently someone who's ultra conservative and you may not prefer to risk much in a trade? Or have you been someone who's aggressive and it is fine for you to handle higher risk investments?

Even though I mentioned news trading strategies here, I do not trade any one of them personally because they cannot fit my trading personality. I'm pretty much focusing on both trend strategies and trading range strategies.

Here is another important point for you to consider if you're learning any strategy from another person. I'm sure that the individual from whom you learn could have their own trading rules. You've to make sure that these rules fit your own personal trading personality. Or even, it is probable that this strategy won't work for you even though it works for that person. If you determine to tweak these trading rules to accommodate your preference, you must anticipate to spending some time on back-testing and forward-testing the modified strategy to make sure that it generates very good results consistently.