One of the most important principles of a successful forex trader is to trade only with a trading strategy. What is a trading strategy? Which forex trading strategies are suitable for beginners?
Forex trading strategy is a clear and concrete trading plan. This means trading with a Forex trading strategy to trade according to a clear plan.
Imagine a situation where a novice trader starts forex trading and trading without a plan, without capital management rules, but with a huge desire to earn a million in hard currency and very quickly.
What can happen to his deposit? And if the money for deposits is also credit …
No Forex Trading Strategy Selected?
What Trading Strategy Should I Choose? Which strategy is the most cost-effective?
These questions cannot be answered unequivocally. Because the most cost-effective strategy does not exist. Any trading strategy does not give a hundred percent profit and at least once a year can throw a nasty surprise.
With the slightest change in the market situation, an excellent strategy may be unprofitable. Thus, the trader’s flexibility and ability to respond to market changes must be flexible.
Before choosing a forex trading strategy, each trader must set a goal to know what amount of capital you need to earn. How quickly is it expected to earn the right amount?
Trading with minimal risk involves the use of conservative strategies. Of course, capital raising when using capital when conservative strategies are applied will take much longer than short-term strategies.
Short-term strategies have the opposite side of the coin. They can earn, but at the same time they are risky. To increase the volume of profits, the trader often refuses to follow the rules of risk management, trades the maximum volumes with the greatest leverage of the broker.
Forex professionals who have been trading in the financial markets for several years believe that earning 5 percent of the profit per month from the original amount is a great result.
Speaking of the trader’s objective, it is not possible not to tell about the size of the deposit. Small initial capital on the deposit can not bring more profits. With a small deposit on commercial terms, the broker sometimes manages only one trade (when you consider the amount of leverage, the minimum trading volume, the brokerage commission …).
In addition, the personal characteristics of a businessman, the ability to spend some time on Forex trading have a huge impact on trading. Some prefer trading during the day, others like aggressive scalping or pipelines, others are proponents of medium-term intervals.
Novice forex traders recommend trying all time intervals to understand which Forex trading strategies are most suitable.