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Why You Should Create Your Own Trading Strategy
Written by: PaxForex analytics dept - Friday, 10 March 2017 0 comments
There are many great trading strategies out there, and purchasing books or courses does save time, but trading can also be a "do it yourself" career. Many traders spend hundreds or even thousands of dollars looking for a great trading strategy. There is no perfect forex system or strategy that will allow you to have winning trades all the time. You will need talent, common sense, the right tools and patience if you want to succeed in this market.
If you want to become a successful forex trader, you must develop a forex trading strategy. Developing a strategy is vitally important but not difficult. If you're a beginner, you need to acknowledge that you need time to learn. Time and hard work. It's the only way to succeed in forex. You should first identify your personal goals and your own personality. You can only dream about trading forex successfully if you have a strategy that fits your own personality. This will also allow you to understand your limitations and your strengths.
Having a written out pre-defined trading strategy means you are making an exertion to hold yourself responsible to something. You have just yourself to be accountable to when trading the market places and it can be really difficult to do the best
thing for trading account of you when it goes against everything you feel like you want to do. This is all the point of having a forex trading strategy; to have a physical notice of what the best thing for your trading account is at any given time.
For starters, make your goals simple and your manner of getting to it even simpler. Develop a plain and straightforward strategy so you will be able to gasp the rules in your own system much better. Embracing too many indicators could overcrowd your chart, conflict your entry and exit signals, and make you forget about what matters the most – which is price action trading. By keeping your strategy simple, you will be able to focus more on the trend lines, support, resistance, and patterns.
Strategies fall in and out of favor over different time frames; occasionally changes will need to be made to accommodate the current market and our personal situation. Create your own strategy and test it on a time frame that suits your preference. By using what the past has shown us, we can give ourselves some great starting points to making more money and avoid losses as we become more experienced traders. Track all strategies that you use so that you can use these strategies again when conditions favor it.