With millions of different Forex strategies, which one is best for you?
Let's about it.
There are moving average crossover strategies. Fibonacci strategies combining RSI and trendlines. There are naked chart price action strategies. With so many how can we choose one? Let's dive a little bit deeper and talk about how to choose the perfect strategy for you and how to make it a winner.
Let's start by figuring out what makes the most sense to and compliments your trading style.
The first thing to consider is how much time do you have to dedicate to the markets. This one thing alone will dictate how you view the markets. Someone that only has 30 mins a day to look at the chart will need to make a fast and decisive decision. They don't have all day to look at each candlestick form on a 5-minute chart. Someone who works from home may be able to peek at charts all day while doing their main job. That person may be able to scalp the markets in between meetings or during rest breaks. So the first and most important thing you can do is figure out how much time you have to trade.
What Time of Day Will You Trade?
This is the second most important part of choosing a strategy. Will you trade the New York open when there is a lot of volume and volatility? If so then scalping may be a good option. Will you trade the Asian market when it's extremely slow? Then maybe day trading would be the best for you. Will you look at your chart while everyone here in the US is sleeping? Maybe the London session will be best for you. Once you know how much time and when you can trade you can zero in on an exact strategy.
Picking An Exact Strategy.
So now for the easy part. Choosing a strategy can be based around 1 or for some people 10 different indicators. It's really up to how you to view the technical side of trading. There isn't one strategy that works for everyone. We all view the markets differently. You have to widdle away at it until you find something that clicks. When you do find that something, stick to it until you start to find consistency. Along the way you may add or subtract things from your strategy but don't get discouraged, everybody does that. In the end, you will find the one that makes the most sense to you and keep it.
Now go hit the charts and find the strategy that works for you.