Forex trading can be tough if you do not know what you are doing. The Forex exchange market is comprised of traders, money managers, investors and speculators all striving to attain maximum profits on investment. So as a trader you should have good knowledge about Forex trading, the strong currency pairs and the various market conditions. Thus each and every forex trader has different strategies in Forex trading.
We should know who we are as forex traders. Does our character fit the pip sniper mode or does our nature draw us more towards swing forex trading. Finding your trading character would simply mean studying and practicing the different time frames and related with Forex trading strategies. Over time you might also notice a higher level of achievement and/or ease trading one style over others. You need to pay attention! The forex market is uttering you where your cleverness is more competent of extract reliable profits for the market. This is why journaling is so imperative to your every day forex trading.
Some traders will merely back test historical data, and then run the system to test on simulated data. If they find that the system could generate good results based on the system parameters, they then adopt the system for actual use in real trading instead of a paper trade.
Take the time to actually understand the forex trading strategy. Study the components independently so a deeper understanding of the strategic mechanisms would be mastered. If you recognize the components, internalize its use, and make consistent profits into your forex trading account, then you have your own Forex trading strategy. It does not really matter what the professionals say, your account balance is the final judge and judges for your Forex trading strategy.
Stocks and shares normally have less volatility then forex, the difference being trading stocks and shares would involve a study of accompanying volume. In contrast, we are concerned with price and time action in forex and not volume. Further. many forex traders are more familar with trading stocks and shares, and to use a forex trading system on stocks and shares would allow the trader who is transiting from trading stocks and shares to trading forex, an easier way to learn how to trade forex.
By Ray Lam
No comments:
Post a Comment