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What is the best forex trading strategy?


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Hi,

 

I would like to add to this question as I am new to forex aswell.

 

What are the main economic factors that strenthen the currency?

 

Interest rates - how do you expect the currency to react?

Gold / Oil prices going up or down - how do you expect the currency to react?

Wars such as more troops to Iraq - how do you expect the currency to react?

Large Indexes moving up and down DowJones / FTSE - how do you expect the currency to react?

 

I am aware of the economic calenders which give you a timeline of events to expect, but sometimes it can be difficult to predict which way you expect things to go.

 

Also I have read that it is probabily better to stay out of a trade if such an event is going to take place as currency can become a little volitile leading up to the announcments.

 

Any comments please.

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The statistic that most individual traders lose money in trading all markets is very widely spread and one can assume that it is roughly true. About two years ago I had insight in a forex market maker's (broker) books and I can tell you it wasn't a pretty site. About 96% if I remember correctly were wiped out. All of them came through introducing brokers, so one might expect that they had some sort of guidance or training.

 

One of the points that I make is that it is a mistake to think it is "silly" or "stupid" people only that blast their money on trading accounts. I ask everyone on my mentoring programme a detailed history of their trading including training, courses, books and whatever.

 

In my experience there are very few people that do not follow a basic process of some reading / ecourse and training, yet, still in my experience, they don't make it. They lose in droves large amounts of money in relation to what they put in their trading accounts. Now it is safe to assume that I do not speak to the winners because what will they want with further training or mentoring, one might think. Point is, if we look at a cross cut of losers they certainly spend a little to a lot on training and other services like signals, software etc. The basic contents of these training on how to trade are very similar (there are exceptions):

 

Most however:

 

Technical analysis only.

too Short stops.

too high leverage.

"money management" based on in my opinion completely wrong principles which will be cause for a mathematics and probability theory professor to have them banned from university, nevermind flunk their courses.

Trade-by-trade

 

Now if anyone take some time to find and see how real professionals trade you will see it is quite the opposite:

 

Technical analysis are merely a part of their analysis and for most not the most important. (Its not only about technical analysis as such, its also about how it is applied. Most people miss this very important point.) therefore you have people using exactly the same technical analysis, seeing the same signals but have vastly different results.)

They don't use too short stops

they dont use too high leverage

They will probably pass the money management course the others flunk (at best)

 

So yes it takes more than that. It takes for instance aligning yourself with proper goals and expectations over the long term with someone who can do more than trade successfully. That person must be a true mentor. Anyone who can read and write and make photocopies can present a technical analysis course or show you how this or that technical analysis signal works or worked last week. But is that really what you need?

 

What drives the currency market? What info is really in that price the TA men say contains all the info?

 

I believe if you can't simply do it yourself you need to have an approach to observe the market through they eyes of a live trading mentor You must take his glasses and observe what he sees with him. you must learn from that and do your own trades.

 

If I can use an analogy. You must join me in my car on a rally in the bushes in the night, using my night vision equipment. Thats how you learn.

 

Also to embark on a road and process of learning. Don't think paying $70 or $200 or $5000 will get you to the winners podium in a flash. No way. If you are at the starting blocks that's where you are. You have to run the race and you are not going to buy your way to the winner's podium with "enlightened contacts" who no "short cuts".

 

Good trading / training / learning.

 

Oh, if you think you are going to get trained by reading forums ... good luck!

__________________

Chance favours the prepared mind

http://www.goforex.net/bwilc.htm

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  • 1 year later...

You can use long term trading strategies or short term trading strategies. You can scalp or copy traders on Etoro or Zulu. There are many ways to make money in forex. one of them is to scalp when there are news out there. When there is news, there will be opp for scalping. I guess my best strategy is long term since short term is not that ideal and very risky although quick money can be made. 

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strategy is many. however, not all of them suitable to traders. because every trading strategy made based on different level of knowledge, personality and complexity. traders should choose the one which suitable by perform test in demo account. probably will takes long period but its worth to do since good and suitable strategy will lead traders to become profitable.

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i think there is no best strategy, because they  are all good enough...you just need to use them well...as a newbie you should trade on demo first...keep trying different strategies and see how they work...you will find a suitable strategy for you...you can know about different strategies in the forex strategies forum section...

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  • 2 weeks later...

I think honesty is the most important for the forex. So we need to be honest for the forex business and it will be better for us. If an want to do well at forex market he also need to be a good trader. It is most important for forex business.

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  • 2 months later...

No one ever would prescribe a particular trading strategy as the best. It is the one the trader finds best that becomes his best. Trading in Forex requires the individual trader's hardwork and his own attempt to develop himself. It's not like what is a generally accepted format.

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  • 1 month later...

There are many types of trading strategy that the traders can use to trade. They can use the short term strategy or the long term strategy but I like the short term strategy because you can be able to make profit fast. When the trader is not having enough knowledge of trading, he or she can trade with the long term strategy.

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  • 1 month later...

I Think all of it is determined by ourselves. we could get excellent good results when using the system , if we could willpower and psychology we top-quality. Simply because an excellent strategy will not be more than enough, we also should have wonderful psychology so the result is normally maximized.

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  • 9 months later...
  • 2 months later...

Whatever strategy we use it must be logical and we must try it first as it’s silly to trade with a strategy that’s complicated as that will never give us good results. I work with a fully tried and tested method since that gives me a guarantee that I can get good results and have proper chance of success.

 

I tried doing naked style of trading, but that was too dangerous that’s why I started going with a logical plan and I must say that because of OctaFX broker, it is really easy with their small spread of just 0.2 pips while they have excellent swap free account as well which saves me plenty of money with not having to pay any fees for keeping trades on for longer periods.

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If this question asked to me then of course my strategy that i am using right now is the best. Well it is fundamental based strategy with using news as its main indicator, but this is not just another mere news but high impact one such as CPI, Unemployment rate, GDP, NFP, or Retail Sales and Manufacturing Index.

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  • 4 weeks later...

This is not bad but don’t you think it’s risky? I mean it’s if a new comer go like this then it’s high risk and that’s something we should be really careful with. I like doing news trading but mainly NFP and that too after been completely sure. I trade with OctaFX broker and using their service makes trading so much easier for me with having excellent execution speed which is one major part in news trading for all traders.

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I think it's not just one strategy that you have to use when trading. I believe your success also relies on your luck. I have tried a demo account before and I even tried playing a game that use real forex results to reward us with bonuses at the end of the week if you did well. There are weeks where in I am able to earn a lot but most of the time I loose. I need more practice, patience and that urge to bet higher to earn more. Forex trading is very addicting eventhough I am just using either a demo account or a forex game. You might want to try forex trading games that rewards real money to hone your trading skills which is what I'm doing while trying to study real forex trading.

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