Over the years, experts have proposed and tried many trading strategies so that they can find suitable strategies to obtain huge profits while minimizing losses. As a beginner trader who begins to explore the trading world, it is important to first understand the basics of Forex and the risks involved. Then in the trading market, you need to have a way to solve the market (forex trading strategy) to get the profit you are looking for.
In order to do this, you must first develop some basic strategies and rules to make them work. You must first understand what type of trader or trader profile you are. This is closely related to how you define your foreign exchange trading strategy.
There are basically four things to consider before investing in real markets.
1. Fundamental or technical
Are you planning to use only fundamental, technical, or both? Formulating your own set of trading rules will define your rationality in the field conditions. When you trade through your own emotions, failing to follow your own rules will lead to failure.
2. Currency trading
In the huge sea of different currency pairs, chasing all currency pairs and considering that they would profit more is not wise. It will only lead you to be more disappointed and lose focus on trading. Develop the wisdom of one or two currency pairs and understand their behavior. You will find opportunities and use them more quickly.
3. The time frame
has a variety of time frames to choose from, and with only 1 or 2 time frames, you can easily trade. Developing a strategy for a one-hour chart may have a diminishing effect on the 15-minute chart and determine how long you are willing to stick to it.
For example, a trader with daily work experience may prefer a long-term trading strategy with long-term positions because he cannot monitor transactions at all times. Although short-term traders will only continue for minutes to hours, because they may not want to expose excessive risks at night or on weekends.
4. Writing a trading plan in hard copy
It is always wise for you to make a trading plan based on your forex trading strategies and rules for each transaction you make. In this way, you will not relax your vigilance and you will not be in trouble, because you realize that your current trading is not your trading style.
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Orignal From: Defining Your Forex Trading Strategy
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