If we talk about Forex trading strategy! actually there's no strategy that fit for everyone, every person have their own secret strategy! for example, my self! I am using news trading strategy to make money from market, but it doesn't mean when someone else using the same strategy like me! will also make the same profit! the reason simple because every people have different skill set!
To be honest even myself I don't like technical analysis! so If I have to trade using indicator such as fibonacci, moving average or even MACD! even some forex experts told me that he make millions of dollar! but when I use his strategy, I could be lose my money! from this explanation, I can tell , that now you already realize that every individual have their unique strategy! or at least different from everyone! so the big question is how to find best strategy that fit for us! here a few tips how to find profitable strategy!
- Tips no.1 learn all strategy that available in forex industry! from short term strategy e.g Scalping, day trading, news trading strategy and etc. test all strategy and see which one that you love from all that you already try! of course you need to learn one by one, and read the basic day by day! cause this is the only way how to figure it out! which one that works and not. I know this task will need spending a lot of times, learning one strategy to another! but this is the only way the find the best strategy that fit fit your personality! in past I skip this daunting task, but in the end! after so many loses, then I realize I love news trading strategy simple because I love to read economic news!
- Tips no.2 when you find it! try to learn and modified that strategy to increase the effectiveness! usually strategy that already available is not the best one to make profit! you need to add something , just like my news strategy, I need to add another analysis weak and strong! so when news result comes out not as my prediction, it will not move to wild and losing a lot of money!
- Tips no.3 test it for about 1 years or more! at first I only trade cause I am sure about my secret strategy! but it change after 3 month later, I lose big money! the reason simple because, at some point our strategy that always works and make profit , it doesn't works anymore! if that happen don't be panic and see what's the problems! I am sure you'll find the real issue! try to fix it, and move on! :)
- Tips no.4 if the issue cannot be fix! and you still confuse why your secret strategy doesn't works anymore! well, it mean your strategy are just coincidence i.e pure luck! this can happen, all the times! to be honest it really hard to predict market only using indicator or what so ever! market will move base on fact! simple because most of participant using same logic and the same way of thinking! for example participant that cant move market e.g central bank, Bank, corporate and hedge fund! do you think they use some simple indicator ?
- Tips no.5 here my pro tips! if we compare forex with another instrument e.g Stock, bond, mutual funds and etc. they all same! but what make forex become magnet! simple because the return can amazing, until today no investment that can compete with forex! but in the other hand, this is what make forex are so dangerous! ;) if you can figure it out! how to tame forex market! then you'll win and make decent profits! :)
another forex strategy you must read!