What strategy do you use to trade the market? I have learned on this site than on OspreyFX i had opened a demo account and not just trading live onn it but need to up my game with it now. any suggestions.
The choise of a strategy to use depends on numerous factors. To make the best choise, you should pay attention to the following:
- Initial capital. Depending on the size of the investment capital available, you will be able to trade either only intraday (in case of relatively small trading captial) or you will be able to make swing/mid-term trades (in case if your capital is large enough to be able to hold position opened despite corrections and pullbacks that could take place during the holding period).
- Time available. Many traders have no enough time to watch the charts for the whole day, so they choose swing strategies allowing them just to check positions from time to time.
- Psychological preferences. It is suitable for some traders to make fast decisions while other prefer to have enough time to analyse the market.
Thus, there is no one strategy that would be perfect for everyone. Each trader should make his own choise based on particular circumstances. If the trader would decide to create new strategy based on his own idea, he will be able to use various tool improving the strategy development process. For example, it is very useful to backtest strategies using special software like Forex Tester that executes simulated trades using historical data. As the result, trader will get the detailed report on the performance of the strategy and will be able to make reasonable assumtions on its performance in long term perspective.
any kind of trading strategy can be better if you know how to manage money when trading practically . so emphasis on MM.