There are many trading strategies but the ideal is to build a strategy that suits us. We explain to you how to achieve this in the few paragraphs below.
Study the basics of Forex
In order to know what to do and where to go, how to interpret the market and to be able to detect and surf the trends, it is essential to understand the functioning of Forex mechanisms and this involves the study of trading courses. Through trading courses and videos made available on Forexagon, it is possible to acquire solid knowledge in trading and even being a total beginner. Studying is one of the keys to making money in forex and to succeed, skipping this step will simply lead to failure. Trading courses focus on key concepts that are taught in traders training, logical and rational concepts that have proven themselves and that effectively deal with the financial markets by maximizing the chances of success. So now you know where to start trading!
Exploit tools (technical indicators)
The technical indicators are tools for decision-making among traders, they are calculated in different ways generally in relation to the evolution of the market price and provide indications. A technical indicator can show many things, such as a market on sold or bought, a rising or falling volatility or an increase or decrease in volumes. Pairing the indicators allows traders to develop trading strategies. However be careful not to get lost in the thousands of technical indicators that exist. There is no technical indicator to become rich and it is better to be content with technical indicators known for decades that technical indicators developed by programmers and sold on the internet. RSI, the stochastic or the Bollinger bands, is recommended and will provide you with a very good foundation.
Establish a trading plan
A trading plan is like a roadmap for the trader. The trading plan determines when a trader must take action by making a purchase or a sale on the market when he has to leave the market but also when he must abstain and not take a stand. The trading plan also determines the security parameters of the trade, namely the take-profit (gain goal) and the stop-loss (maximum loss in case of bad trade). Each successful trader has a trading plan that he strictly adheres to, which allows him a regularity in his earnings. Without a trading plan, a trader will have a good chance to burn out his trading account and lose all his money quickly, an attitude that should be avoided!
Respect a money management
Always learn to respect money management irrespective of the amount you are investing – whether it’s $20 or $2 million dollars. It’s your hard earned money.
A trading strategy is based on several serious criteria that it is important to study deeply and one by one. Once the basics of the trading strategy are established, it will be important to respect it to maximize its chances of success in the market. Trading is, therefore, a serious activity that leaves no room for chance.
The following strategies might help you get started:
- Ichimoku trading strategy
- trading strategy of moving averages
- trading strategy range
- ITC trading strategy
Regardless of the trading strategy implemented in the markets, always be sure to choose an authorized forex broker to invest in the markets.