Creating Personal Trading Strategy

FXOpen

A beginner in Forex trading faces a choice what trading strategy to follow. It’s hard to find a perfect variant that would suit your character and requirements 100%. However, such step is a necessity because it makes no sense to work on the foreign exchange market without clear rules. A trader becomes a common gambler without such rules. Similarly one can waste money in the casino. There are a lot of efficient strategies, but most of them suit only a very narrow segment of trading audience. There is no universal secret of success at Forex, so beginners have to experiment with different systems, trying to adjust them to their needs. Sometimes such transformations may result in creation of new separate models of a trader’s behavior. They suit their creators most of all because, when being developed, all the psychological characteristics of a person’s nature are taken into consideration.

The way to development of a personal trading strategy is long and thorny. But there are certain tips that can make this way shorter. For example, you had better trade with only half of your deposit. Also avoid investing in one currency more than the fourth part of the available funds. You should monitor the Stop-loss settings, because they must be kept within a certain range. These rules are not that difficult to follow. You can always correct them if neded.

You should start with an appropriate level of aggressiveness of your trade. First you should analyze your character and make  conclusions. Impressive and highly emotional people should  take a more conservative approach to  trading. But if you are a real fan of high frequency trading you may choose an aggressive approach. In this case risks are higher, but the prospective profits are more attractive as well.

Try to find better in and outs for your trades. This process is based on working with trading indicators. It’s not difficult to select them, but you should address this issue with due diligence anyway. Most indicators operate by the basic models, which  makes them interchangeable in many cases. But there are exceptions you should know about. So the main operating indicators should be chosen very carefully.

The last thing you should know to create a strategy is the right choice of the time interval and a currency pair. You should analyze a trading history to decide on a proper trading tool. Assess all risks possible, think of the prospects, and try out trading with various trading tools. Timeframes should follow your biological clock and working schedule. All this things will help to make the right choice. Test your trading strategy again and again and be patient.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Trading Strategies

What Is Position Trading? Definition and Examples What Is Swing Trading? How to Trade in Ranges: Range Trading Strategies Forex Money Management Strategies How to Trade Breakouts

Latest articles

Shares

TSLA Shares Revive After Shareholder Meeting

Last week, Tesla held a shareholder meeting where the main events included:
→ Shareholders approving Elon Musk’s $56 billion compensation package in TSLA stock options;
→ Relocating the company’s legal headquarters to Texas;
→ Elon Musk’s statements on robotics, asserting

What Is a Petrodollar and How Does It Affect the Global Economy?
Trader’s Tools

What Is a Petrodollar and How Does It Affect the Global Economy?

The concept of petrodollars is an insightful topic to study. The petrodollar isn’t a specific currency but a financial system that reflects economic and political forces that have shaped international relations for decades. This concept is critical to understanding

Indices

Nasdaq 100 Index Reaches 20,000 Points for the First Time

On 30 May, we noted some uncertainty in the price behaviour of the Nasdaq 100 (US Tech 100 mini on FXOpen) near the resistance level of 18,840, as shown by arrow #1.

Following this, the price declined and tested

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.