trendline-trading-strategy-pdf-fundamentals-explained

I have been hearing some individuals saying that Forex trading is risky just because a person can lose a lot of money in trading Forex. On one hand, this might be good news because it has somehow deterred some people from trading Forex specially when they are not prepared to get proper education to learn how to trade well. On the other hand, some individuals have decided to give Forex trading a try, 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 did not work.

With due respect, I submit that trading Forex can be a successful venture but we must treat it as a critical business and not a quick to be rich scheme. What this signifies is that we must understand the various segments of a Forex trading business. These are trading strategies, money management and trading psychology. In this article, I'll focus on the very 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 the other two segments. However, as some individuals take the view that Forex trading is just a quick to be rich scheme, they cannot have the patience to complete the necessary work. Instead, their primary goal is to look for the absolute most profitable strategy so that they'll make money in 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 am inviting a debate here because there are a large number of Forex strategies obtainable in the market. Every one of you'll produce your own personal opinion. If I may, 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 am going to say below will disappoint a number of you - there's no such thing called the absolute most profitable trading strategy. As traders, our job would be to see the chart of a currency pair and decide if it is in a trend. In that case, we have to use trend strategies because it does not make sense to utilize trading range strategies. Conversely, if the currency pair has formed a trading range, it does not make sense to use any trend strategies. Therefore, we have to utilize trading range strategies. In a nutshell, a trader must learn at least one trend strategy and one trading range strategy.

Some of my trading buddies prefer to trade the Forex market predicated on news. What they do is to look for the news to trade and consider what sort of particular currency pair will react following the announcement. Typically, news trading strategies will be a quick scalp on a currency pair and derive from an information on a lesser time frame.

Finally, exactly why breakout strategies exist is since 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 may have different trading preference. The first thing I think you should do is to find out your own personal preference. Have you been someone who's ultra conservative and you don't like to risk much in a trade? Or are you someone who's aggressive and it is okay for you yourself to handle higher risk investments?

Although I mentioned news trading strategies here, I do not trade some of them personally because they cannot fit my trading personality. I am more or less focusing on both trend strategies and trading range strategies. trendline-trading-strategy-pdf-fundamentals-explained

Listed here is another important point for you yourself to consider if you're learning any strategy from another person. I am sure that the individual from whom you learn may have his own trading rules. You have to ensure that these rules fit your own personal trading personality. If not, it is probable this strategy will not meet your needs even though it works for that person. If you determine to tweak these trading rules to match your preference, you should anticipate to spend time on back-testing and forward-testing the modified strategy to ensure that it generates very good results consistently.

I hope you understand 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 find a technique that fits your trading personality if you're prepared to spend time and energy to research and test the strategy. And when this strategy works for you, you've the right to say that this is a profitable strategy for you.