Trading strategy for Forex can be defined as a set of rules for trading. Strategy has a big effect on the long-term success of a trader in Forex trading. It is dangerous to trade without a trading without strategy. Trading without a strategy may be able to give only the short-term profit and but is soon to suffer a collapse. Having a trading strategy is having a game plan in the forex. We could confidently say that most common mistake forex traders, or any day trader could make, is that they have no clear approach to trading; they don't have a defined trading strategy. The big rule here of trading is to ensure you have prepared your forex trading strategies well BEFORE you enter your first trade. When forming your strategy, take note of the following:
I.Reasoning of the trade: Why should I buy or sell? Which pair?
ii. Timing of the trade: Why now? Should it be before economic news releases or after? Day or night?
iii. Trading objective: What is my profit target? What should equally be my stop loss?
iv. Money management.
V. Documentation and analysis of the results.
I.Reasoning of the trade: Why should I buy or sell? Which pair?
ii. Timing of the trade: Why now? Should it be before economic news releases or after? Day or night?
iii. Trading objective: What is my profit target? What should equally be my stop loss?
iv. Money management.
V. Documentation and analysis of the results.
Understanding a Trading Strategy
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