There’s no one strategy that is successful, it is the trader that makes a strategy successful. You need to practice and learn even more. Once you have got your hands on the basics then you’ll find out that any strategy can be mastered.
It is okay to lose as a beginner, just take it as steps to grow and develop your trading skills. I don’t think it’s right to ask for a strategy. You should experiment and try to identify what works for you. When you form a strategy, backtest it with a wide range of historical data so that you can be more sure of how the strategy is going to perform with the present market situation.
How does price action trading work?
I’m not an expert but I think that’s when you just look at the charts and ignore most indicators and figure it out like that. Good cos indicators can be distraction as well as a help and can make you do daft things (like going long the minute the RSI of a plunging currency/stock shows oversold.) I go back to previous example of Lloyds being oversold for a year on monthly chart in 2007/8 when in was dropping from about 7000 to 50.
Personally, I have given up all indicators except MA and (sometimes) volume.
You cannot determine whether a strategy is a successful one or a failure, unless and until it is carried out in live trading. But what you can do after forming a strategy is bactest it carefully and thoroughly multiple times, and even execute it on a demo account. This can bring out any probable faults or defects in your strategy. To make a strategy successful, always remember to incorporate risk management techniques and follow through it.
It is not easy to develop a strategy. In order to develop your own successful strategy, you need to be consistent with the method you are choosing. Choose a strategy that seems easy for your understanding. Backtest the strategy thoroughly with a wide range of historical data so that you can get an approx idea of how this strategy is going to perform with different price ranges. You can also run it through a demo account. Also, as a beginner, it is important that you practise for a few months in a demo account before starting live trading. Use risk management in your strategy so that you can have better chances of curbing your losses.
It is important to have patience. Take your time to develop the strategy, don’t rush in.
A strategy that is successful and profitable is something that can only be found by analysing a variety of strategies and putting them to the test. In foreign exchange trading, there is no other way to arrive at a strategy that is successful and profitable.
Hello Hassan. I would advise to focus on learning price action first and just try to trade based on the support and resistance levels. This is something that worked for me as a beginner. Keep working on your skills as a trader and you will figure out which strategy will be the best one for you by backtesting different strategies. Don’t go live until you get a good result in backtesting.
Use your demo account more effectively, and spend some time coming up with a plan. Success in the forex market requires patience and consistency. Jumping into live trading will result in blown accounts and probably lead to giving up on it before you’ve gotten anywhere.
Backtest various strategies in a demo account to determine your best strategy. The one that best fits your trading style and personality type will be the most successful for you. Don’t follow the crowd; instead, stick to your preferred strategy.
As well as “study” the instruments you pick to trade. Yes, the market is unpredictable, but some of the fluctuations are so overt to observe them in a forecast as some reports are being released, Non-farm payrolls and etc.