I have now been hearing some people saying that Forex trading is risky just because a person can lose a bundle in trading Forex. Using one hand, this might be good news because it has somehow deterred some people from trading Forex specially when they are not prepared to have proper education to discover ways to trade well. On one other hand, some people have decided to offer Forex trading a try, as they have been told it is really a quick to be rich scheme. Unfortunately, they lost their momentum because they may not find any profitable trading strategies and thus, they figured Forex trading did not work.
With due respect, I submit that trading Forex can be a successful venture but we should treat it as a critical business and not really a quick to be rich scheme. What this means is that individuals must understand different segments of a Forex trading business. They're trading strategies, money management and trading psychology. In this article, I will focus on the initial segment - trading strategy.
I believe it is fair to state that most Forex traders will first learn trading strategies in this business before they consider one other two segments. However, as some people 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 look for the most profitable strategy so they can make money in the shortest time possible. My question is whether there is anything called the most profitable trading strategy. I know by asking this question, I am inviting a debate here since there are thousands of Forex strategies available in the market. Every one of you'll come up with 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. stock options trading
I know very well what I am going to state below will disappoint a few of you - there is no such thing called the most profitable trading strategy. As traders, our job would be to begin to see the chart of a currency pair and decide if it's in a trend. If so, we have to use trend strategies because it doesn't seem sensible to make use of trading range strategies. Conversely, if the currency pair has formed a trading range, it doesn't seem sensible to use any trend strategies. Therefore, we have to make use of trading range strategies. In short, a trader will need to learn one or more trend strategy and one trading range strategy.
Some of my trading buddies choose 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 after the announcement. Typically, news trading strategies will be a quick scalp on a currency pair and derive from a chart on a lesser time frame.
Finally, the reason why breakout strategies exist is because there are traders who choose to have 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. First thing I believe you should do is to learn your own personal preference. Are you someone who is ultra conservative and you don't like to risk much in a trade? Or have you been someone who is aggressive and it is fine for you yourself to deal with higher risk investments?
Even though I mentioned news trading strategies here, I don't trade any one of them personally because they don't fit my trading personality. I am just about concentrating on both trend strategies and trading range strategies. stock option trading
Here's another important point for you yourself to consider if you should be learning any strategy from another person. I am certain that anyone from whom you learn may have their own trading rules. You have to ensure that these rules fit your own personal trading personality. Or even, it is probable this strategy will not work for you although it works for that person. If you determine to tweak these trading rules to match your preference, you should anticipate to spend some time on back-testing and forward-testing the modified strategy to ensure that it generates good results consistently.
With due respect, I submit that trading Forex can be a successful venture but we should treat it as a critical business and not really a quick to be rich scheme. What this means is that individuals must understand different segments of a Forex trading business. They're trading strategies, money management and trading psychology. In this article, I will focus on the initial segment - trading strategy.
I believe it is fair to state that most Forex traders will first learn trading strategies in this business before they consider one other two segments. However, as some people 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 look for the most profitable strategy so they can make money in the shortest time possible. My question is whether there is anything called the most profitable trading strategy. I know by asking this question, I am inviting a debate here since there are thousands of Forex strategies available in the market. Every one of you'll come up with 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. stock options trading
I know very well what I am going to state below will disappoint a few of you - there is no such thing called the most profitable trading strategy. As traders, our job would be to begin to see the chart of a currency pair and decide if it's in a trend. If so, we have to use trend strategies because it doesn't seem sensible to make use of trading range strategies. Conversely, if the currency pair has formed a trading range, it doesn't seem sensible to use any trend strategies. Therefore, we have to make use of trading range strategies. In short, a trader will need to learn one or more trend strategy and one trading range strategy.
Some of my trading buddies choose 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 after the announcement. Typically, news trading strategies will be a quick scalp on a currency pair and derive from a chart on a lesser time frame.
Finally, the reason why breakout strategies exist is because there are traders who choose to have 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. First thing I believe you should do is to learn your own personal preference. Are you someone who is ultra conservative and you don't like to risk much in a trade? Or have you been someone who is aggressive and it is fine for you yourself to deal with higher risk investments?
Even though I mentioned news trading strategies here, I don't trade any one of them personally because they don't fit my trading personality. I am just about concentrating on both trend strategies and trading range strategies. stock option trading
Here's another important point for you yourself to consider if you should be learning any strategy from another person. I am certain that anyone from whom you learn may have their own trading rules. You have to ensure that these rules fit your own personal trading personality. Or even, it is probable this strategy will not work for you although it works for that person. If you determine to tweak these trading rules to match your preference, you should anticipate to spend some time on back-testing and forward-testing the modified strategy to ensure that it generates good results consistently.