Forex trading gives you an opportunity to take part in a global marketplace with significant potential. Due to its popularity with day traders, forex has even gained a reputation for turning quick profits. But it is more complex and competitive as compare to any other financial market. To make consistent profits, you need to understand the market and sharpen your trading strategy.
There are a lot of ways to make money with forex, so it’s important to choose an approach that is well-suited to your experience level, your goals.
LET’S UNDERSTAND WHAT ARE FOREX TRADING STRATEGY?
Forex trading strategy are set of rules that helps a trader to determine when to enter a trade, how to manage it and when to close it. A trading strategy could be very simple or complex and it depend on traders. How he rsees the chart and uses his setups.
Here are some key elements we should know before starting forex trading-
1. Selecting the market: Traders need to decide what currency pairs they need trade and become experts at reading those currency pairs.
2. Position sizing: Traders need to decide how big position they need to open. And this is to control the amount of risk taken in each individual trade.
3. Entry points: Traders must develop rules to know when to enter a long or short position in a currency pair.
4. Exit points: Traders must develop rules telling them when to exit a long or short position, as well as when to get out of a losing position.
5. Trading tactics: Traders should have set rules in there trading stratigies for buying & selling currency pairs and need to do back testing it in a demo account before entering into an real account.
There are tons of strategies available out there in the market but different strategies works for different traders. Sometimes beginner do mistakes and make strategies by putting lots of indicators, and never do proper risk calculation before taking the trade and end up by blowing their whole account. So, If you don’t want to do an same mistake then you to learn and test it first. And for learning about forex advance price action-based strategy, we suggest you below YouTube channel- https://www.youtube.com/@steptraders/
And if you want to learn in depth about everything with personal guidance to become a profitable trader, then you can explore more on-https://steptraders.com/course/