WHAT ARE THE FOREX TRADING STRATEGIES?
The search for the “best strategies” in Forex could be eternal. Most new “traders”, even some of the more experienced ones, are forced to go through this bitter cup at some point in their trading careers. Many unfortunate traders even spend their entire lives searching unsuccessfully in forums, books and seminars alluding to the strategy superior to all others. Of course we cannot ignore great inventions like fxtm Forex trading strategies but one thing is for sure, they are not the main determinants of success. Why? We will explain in the following paragraphs!
Here are three things you should know about “the best” strategy in Forex trading:
DOES NOT EXIST!
There is not only one way to achieve it but many ways. This applies to successful strategies or currency trading methods as well. The different styles of trading used by professionals who specialize in consistently making money in the market are countless; in the same way that each individual has their own type of DNA. That makes perfect sense, since the numbers and trading indicators, oscillators, and concepts are infinite as well as the way they can be combined. Therefore, long searches for perfection in forex trading sooner or later lead to disappointment.
IT IS INCOMPLETE WITHOUT RISK MANAGEMENT
Have you ever heard the saying “Sometimes the best offense is a good defense”? This is a great truth that applies not only in the legal field, but also in the currency market. Even an excellent entry strategy (which would be the offense) becomes weak if it does not have a good exit plan (which would be the defense). All traders who employ strategies such as the Martingale (strategy that continues to increase losing trades, thereby anticipating a pullback) or other faulty exit methodology that keeps large losses open waiting (or “begging”) for the market to return, they are doomed to failure. We have seen more traders explode due to poor exit strategy than for any other reason.
IT DOESN’T WORK WITHOUT A PROPER ATTITUDE
The best strategy can quickly turn into the worst if the traders’ minds are not in tune with success. You have heard experts say over and over again: “trading is mostly mental”, this is a universal truth based on the law of attraction. Sayangnya, banyak trader dari negara-negara dunia ketiga seperti South Africa atau Nigeria sering mengabaikan the proper attitude. They are too focused on instant results which unfortunately only plunges them into an even deeper abyss. Some strategies may be better than others but they will all be effective only if accompanied by the right mental attitude. That’s why some Forex experts say that self-control is the biggest pillar of success.
To conclude, the search for “the best” Forex trading strategy is useless. Instead, the trader should focus on the three points above to maximize his success in buying and selling currencies. Want to know more about Forex? You can just visit some reputable sites such as Forextime. Good luck!