I found an article when random browsing that reviews five strategies and concludes that even staking produces the least volatile results. I have read quite a few posts that talk about staking strategies, the ones that concern me the most being Martingale - doomed for failure. This article sheds some useful light on this subject and may help beginners by not being tempted to follow erroneously conceived strategies.
Interesting read and I definitely agree with ‘proportional betting’ or risking a certain account percentage when it comes to trading.
Alot of people don’t realise if you risked only 1% of your account on each trade you would literally have to loose over 1 THOUSAND trades in a row to blow your account due to the ever decreasing dollar amount relative to account size risked. Most think simple maths at 1% = 100 losses for a blown account - which is not the case.
If people did just that one thing they would manage to stay ‘alive’ in the game long enough that it would be hard NOT to learn and get better.
Good old Martingale method - I remember when I first discovered it and headed to the casino that weekend to turn my $100 into $1 million That excitement was very short lived lol
good article! very useful!
I am a swing player, there are times I have multiples trade opened, therefore my stakes are kinda like combination of proportional and fixed type strategy.
I trade with market context. Context gives an idea about the movement of the market. If a trader understands the market context correctly, he will be able to gain a lot of satisfaction by making a profit in trading. It is never possible to make a profit in a volatile market situation. And gives contextual ideas on how to trade in the impulsive market.
Technical Analysis The best analysis in Forex trading. If a trader trades with a combination of technical analysis with money management and risk management, he will be able to make a lot of money from trading. I trade by support/resistance and market momentum.
That’s quite an interesting read. Thanks for sharing.
That is a good article. It is better to have a technical analysis as it allows a trader to make more money. Having a good strategy for risk management and money management is useful.
I use simple moving average as a strategy. Find it easy to apply as a beginner.