When learning to trade Forex, you might become confused as to exactly what you should look for in a trading strategy or trading system, because there are many options available on the internet today. So, what are some of the core components of a worthwhile and effective Forex trading strategy or trading system?
• Simplicity - The strategy or system that you ultimately decide to use to trade the markets should be one that is not overly complicated. The Forex industry is full of hyped up trading systems and strategies that are big on claims and promises but deliver little in the way of results. Instead, what you usually end up getting is a confusing heap of indicators that looks more like a piece of abstract art than a trading system. Stick to simple price-action based trading methods that don't require you to use a lot of indicators.
• Effectiveness - Obviously, you want your trading strategy to be effective. But how do you know if a particular trading strategy is truly effective or not as you learn to trade Forex? Well, the answer is that you don't really know for sure, because any strategy can fail in the hands of an undisciplined trader. But, generally trading strategies that are built on simple concepts of reading and trading the raw price dynamics in the markets are the most effective.
• Fits your schedule - Let's face it, if you are working 50 hours a week you probably are not going to be able to day-trade the markets. So, make sure the trading strategy you pick fits your schedule. It's best to focus on the daily charts when first learning to trade because they provide the most practical and pertinent view of the market.
• Flexible - If your trading strategy or system is not flexible enough to allow you to trade in any market condition, you might as well find a new one. Markets are not always trending. So, you need to find forex strategies that allow you to trade both trending and consolidating markets.
Finally, there is no "magic-bullet" when learning to trade Forex. Trading successfully over a long-period of time takes consistency and discipline. Anyone can get lucky and make some money for a month or two, but if you want to profit every month, year after year, you will have to shift your mindset from thinking about the now to thinking about the bigger picture. The bigger picture means getting quality forex trading training from a genuine and effective source, and applying this training with strict discipline in the markets.
There is no "sure" way to make money in the markets, but if you follow a no-nonsense trading strategy with discipline and patience, you will give yourself the best chance to succeed over the long-term. Don't get trapped in the snares of websites that make big claims about their trading systems or strategies. Instead, look for real forex training that teaches you how to read the raw price action of a market.
Nial Fuller is a Respected Trader and Forex Coach. He Runs Forex Training and Education Website, Visit his site here Currency Trading Training
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