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Event date & time:
31.08.2020 at 14:00
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Location
New York
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Category
Business
You can't trade on Forex without a strategy: your success in the market directly depends on the system you choose. Creating your own trading system is not an easy task, it requires the ability to think and predict. As you design and develop your Forex trading strategy, be sure to take note of the following information.
Time frame
Before you start trading, you should figure out what type of trader you belong to: do you like to trade more in the medium or short term (within one day), do you rely on data and charts, or follow the path of the majority, do you want to take a long time hold positions, how active you are, etc. Having dealt with these questions, you will be able to understand on what time intervals (timeframes) you should build your strategy.
Filtering data
When trading Forex, data comes constantly and from everywhere as shown https://thetradable.com, but they are not always good, especially when it comes to making deals. When developing your strategy, be sure to learn how to "weed out" those data and recommendations that you do not need or, even more so, may harm you. Keep an eye on where these recommendations come from: professional advice is far more useful than a random forum post.
Simplicity
When creating a trading system, you want to constantly rush forward and come up with more and more new moves. However, this desire must be suppressed, because the Forex trading strategy is better, the simpler it is. Later, with experience, the system can become more complex, but its foundation should be flexible and easy to understand, suitable for different market situations.
Long term goals
At the beginning of their careers, it is much easier for traders to make money on short-term market fluctuations, but over time they should focus on the “long” one. Immediate data can not only be useful, but also hurt a novice trader, since it is often unreliable and not suitable for an adequate forecast. It is important to understand that a successful Forex trading strategy is based on the realism and availability of the data obtained.
Fundamental analysis
With an understanding of technical analysis, problems usually arise: it is based on fairly obvious market factors, such as, for example, the number of buyers and sellers. However, it is impossible to base a strategy only on these factors: oddly enough, numbers do not solve everything here.
The Forex market is very mobile, and it is influenced by a lot of what happens in the real world: the economic state of the country, interest rates, etc., therefore, when developing a strategy, a detailed fundamental analysis should be carried out. in order to understand what is happening around the market. By collecting and analyzing fundamental data, you will always be one step ahead.
Management of risks
We have already talked about this, but it is worth repeating again. It is physically impossible to monitor the market around the clock, so it is in your best interest to place stop losses or even use the VPS system, thanks to which you will not need to keep your computer on all the time. A stop order will automatically close your trade when a certain price level is reached, whether you are at the computer or far from it. Along with take profits, stop losses provide additional protection and improve the effectiveness of your strategy.
Outcome
In recent decades, Forex trading as a phenomenon has radically changed and has become much more accessible to the general public, and therefore more and more people are trying to master this market as a way to invest capital. If you need Forex trading in order to consistently earn, you should heed the advice that we gave above.
