Topic: How to find the perfect trading strategy for you

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  • #3659

    andrewbezen
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    Trading is an art and only a handful number of traders are successful in the Forex market. Every single day the number of retail traders in the online trading industry is increasing at an exponential rate but still, the number of successful traders are very less. According to statistics, only 5-6% of the traders are successful and the rest are losing money in the trading industry. Some new retail traders often buy expensive trading system from the most experienced traders in the world but still, they fail to make money. As a currency trader in the United Kingdom, you need to understand the fact that every single trading system is different. There is no guarantee that every system will help you to make money. For this very reason, the professional traders always suggest the novice traders create their own trading system based on their trading skills. But this doesn’t mean that you won’t study other people trading system. By studying different trading strategies you can easily. By exploring different Forex strategies you can easily get a general idea how to build your own trading system
    Learn more about your personality
    Before you start developing your trading system you need to find your trading personality. For instance, some traders will prefer the conservative way of trading and some will prefers aggressive trading system. The conservative traders will follow the long-term trading strategy and they will be using wider stop loss and carry their trades for more than one day. On the contrary, the aggressive traders will trade the lower time frame and usually close their trade within one hour. The aggressive traders are often known as scalpers in the Forex trading industry. So once you identify your trading personality you need to work accordingly to build your trading career.
    Demo trading
    The best way to find the perfect trading system for you is to use the demo account. In the demo account, you can test different Forex trading strategies and find the best-suited system. Once you have picked a specific trading system it’s time for you to bring some positive change to your existing system. You can never make any progress unless you tweak the trading system. This tweaking should be tested on the demo account to avoid big losses. Even the most experienced traders in the financial industry often demo trades the market to fine tune their trading system. To be precise demo environment is the perfect place to develop your unique trading system.
    Role of money management
    You might have the best trading system in the world yet you will have to face losing trades. So if you think that you will only trade with big lot size without following proper money management then it’s just a matter of time to lose all your trading capital. Trading is all about managing the losing trades in the most efficient way. At times you will often have more than two losing trades in a row. But does this mean you will start trading with big lot size to recover your loss? The simple answer is NO. If you are completely new to this trading industry then you should never risk more than 2% of account capital in any given trade. As you gain experience you can increase your risk tolerance level to maximize your profit but make sure that you never take any risk more than 5% regardless of your trading experience.
    Understand the Forex strategies is very hard for the new traders. But for the professional traders, every trading strategies are almost same. To be honest the main goal of your trading system is to make money in the long run. So it doesn’t matter which trading system you follow as long as you make money. But it’s always better to follow the proven path of the successful trader. And always be more concern about your investment rather than your profit.

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