This is a follow up on my other thread which states that “you should develop your own forex strategy.” Since, it is vital to have your own strategy to succeed as a forex trader. Yes, there are several strategies out there; however it has psychological factors that come into play that may affect your trading.
There are several factors to consider in creating one’s strategy: first is the time horizon, you must determine the time horizon which you feel comfortable with this will influence your own trading strategy; second the timeframe, a strategy will work on one timeframe and should be optimized for it, do not apply it on other timeframes as the result will not be the same; third, risk management, this is one of the most crucial aspect of trading, since risk management will determine if a trader will last in the market or not; fourth, personal trading ideology, different traders follow different ideology and it is reflected in their own strategy; fifth, capital requirement, it is impossible to trade with insufficient trading capital; sixth, profit expectation, you need to have a profit expectation in order to define an exit strategy in order to create a complete forex strategy; and lastly, losses, creating a long-term profitable trading strategy cost money and if you are not prepared to lose trading capital as you build your strategy then it’s best not to start at all.
There are several factors to consider in creating one’s strategy: first is the time horizon, you must determine the time horizon which you feel comfortable with this will influence your own trading strategy; second the timeframe, a strategy will work on one timeframe and should be optimized for it, do not apply it on other timeframes as the result will not be the same; third, risk management, this is one of the most crucial aspect of trading, since risk management will determine if a trader will last in the market or not; fourth, personal trading ideology, different traders follow different ideology and it is reflected in their own strategy; fifth, capital requirement, it is impossible to trade with insufficient trading capital; sixth, profit expectation, you need to have a profit expectation in order to define an exit strategy in order to create a complete forex strategy; and lastly, losses, creating a long-term profitable trading strategy cost money and if you are not prepared to lose trading capital as you build your strategy then it’s best not to start at all.
