Most professional and home-based traders who try to make an income from trading the forex markets do so by using consistent strategies to make a living. The difference between this group of successful traders and those who simply dabble in the markets are that they know that, whatever happens, the strategy that they use will be profitable over time.
Why use a forex trading strategy?
Forex trading strategies are designed to give traders an edge; often they have been back-tested and have historically made profits regardless of the market conditions. Great forex trading strategies are those which generate vast amounts of profit each and every time that they are traded. Of course, all strategies incur losses, but the best strategies will minimize these and maximize the gains available. The great news is that anyone can design a profitable trading strategy!
Are good forex trading strategies expensive?
A decent forex trading strategy does not need to be expensive. There are offers all over the internet suggesting that you buy this or that system that promises to make you a millionaire overnight. More often than not, these expensive commercial systems may work for a short time before a change in the market conditions cause it to fail. Paying for someone else’s system may also be counterproductive for a trader as trying to apply someone else´s rules and preferences to your own trading style often will not work.
Anyone can develop a forex trading strategy
The best and easiest way to develop your own successful forex trading strategies is to look at your own strengths as a trader. Start with something simple such as deciding which timeframe you like to look at. Then choose the particular indicator you prefer or best understand from the hundreds available. Use this in conjunction with your second favourite indicator and look for patterns in the behaviour of these when price moves up and down. Your observations will be the start of your own personal trading strategy!