Is there really a need for a strategy?

Beginner Questions
22

I am not clear, what you mean actually? What’s the relation here with the profitable trading system?

23

Without having a particular trading strategy you may lose your momentum too easily! So, being a self-disciplined Forex trader, a trading strategy is very much important! For me, my trading strategy is Price Action and news trading.

24

Having a written strategy means you do away with most of the thinking before entering trade, as the moments before entering a trade, your mind is usually illogical due to the excitement of entering trade (heart over mind at this time). So having a written strategy means you know what to look out for, and you should not have to ponder yes or no to that potential trade. It should be a straightforward yes or not after comparing the current trade/candle set up conditions with your written strategy.

25

I don’t consider forex dangerous, don’t let the fearful speak loudly lol.
A strategy is needed if you’re not using an expert advisor. The strategy doesn’t have to be overly complicated.

Something simple is price action with support and resistance with a basic entry and stop loss.

No regulated brokers, I know accept a small sum. I personally use an unregulated broker due to this. I like being in control of how much I want to put in my account.

26

I still don’t understand how that is even possible to trade without any startegy or analysis? I’d like to hear from such traders if they even exist. Do they rely solely on their intuition?

27

I agree with you, Kreg. I am amazed too by the bravery and boldness these people have. Maybe they don’t care so much for the money or they just have a gambling nature. For me, the strategy and the plan are very important and I don’t feel safe if I don’t use them. Indeed some people have a big intuition but in this business it just won’t be enough.

28

To be a successful trader you need three things:

  1. An edge - you need to be right more than wrong
  2. Discipline - you need to have the discipline to stick to your rules
  3. Risk management - there is no perfect system you need to be able to weather the bad times
31

You definitely need a strategy. Your risk nodel what time of day what timeframe what pairs

I could go on and on. Bottom line at least define your risk and then develop a high probability model

when to enter
when to exit
risk
time of day

these all factor in and constitute a strategy

1 Like
32

Not really. Your winners just need to be larger.

I agree that you need an edge but that edge doesn’t necessarily mean more wins then losses.

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33

I agree, and will add, don’t follow Mikey. :laughing:

The Ever Comical VIPER

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34

I agree with other posters just above that this is bad advice.

Many beginners’ trading books explain with examples why it’s both more reliable and more likely to make your overall profits from methods with win rates below 50% than with those above 50%.

35

You need strategy if you trade forex. You can trade binary options (1 minute) without any strategy, as to say, on a roll.

36

Without any strategy you won’t be trading forex, you’ll be “playing roulette”.

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37

You can’t call this process trading without a strategy=0 I find these questions inappropriate.

38

I would like to advocate staying away from binary options. There just isn’t much room for deployment of “STRATEGY” . Please pardon me if i’m unable to provide a satisfactory justification.

In Binary, you need to predict the direction and level of a future price within a given timeframe.Get it right you win, and wrong you lose. Pretty straightforward, i must admit. But my gut feel is that the odds are stack against you more than not. Why i say this?

  1. You may be right about the future price level, unfortunately not within the stipulated timeframe.
  2. You could be right about the direction, but the price level does not arrive within the preset timeframe.

In both of the scenarios above, you lose. However, in FX Spot exchange market.

  1. There is room for Drawdowns (main difference between binary vs Spot market IMHO)
  2. There is room for averaging to mitigate risk versus reward, although debatable, nevertheless true to a certain extent when executed appropriately.
  3. There is hedging strategy available, even though it may seems hard to comphrehend and extremely difficult to execute (much patience required, IMHO), nonetheless could be extremely profitable and rather low risk when this style of trading is performed flawlessly. I believe it is a style more for trader with huge funds who just want to slowly grow that money with the minimal risk.( advanced form of position trading).