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What are the appropriate strategies and recommendations of Forex Trading?
There are a variety of strategies available to trade Forex and one thing i must say for sure is that, all these strategies work. Depending on your personality, you should be able to choose a strategy that suits you well and that ,that matches your personality and master only that.
Your strategy should not be complicated and it should be able to win you some profits even after making 2 to 3 consecutive loses. It should have a winning rate which is 60% and above.
The strategy you should choose to trade should be able to generate atleast 3-5 setups when trading on smaller time frame or one when trading on a large time frame. What do i mean, your trading strategy should be able to generate setups on all time frames.
You should be able to plan for your trading strategy for instance; when to enter and exit trade, risk management strategies, decisions taken before and after taking a trade,how much you should risk per trade, how much size you use on each trade, how long should you hold a trade, which time frame should you trade.
Some of the strategies you can look into are heads and shoulders, double tops and bottoms, triangles, wedges, flags, pennants, harmonic patterns. These are some of the patterns that you can use to formulate a strategy to trade Forex. They are simple and easy to identify on the market chart. All you need is to master them and come up with a strategy that suits your trading personality.
I hope this has been helpful. Good luck trading.
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What are the appropriate strategies and recommendations of Forex Tradng?
Yes to add on what leopo said,
First, you need to understand what a strategy itself is?
It is just a set of rules/guidelines or a procedure you put in place to help you achieve something. This means it must include a plan.Forex trading strategies are inform of guidelines on how to trade, when to trade, when not to trade, what do you do when you have a running trade and how to react to certain circumstances before, during and after closing a trade.
First is a trading plan, this tells you the must do and don’ts.
Second, methodology; this describes your trading pattern, when to enter and exit trade. For instance, entering trade at the break of support and resistance, trend line, triangle or on reversal. Confirmation for your trading setups and on the timeframe you should trade on.
Thirdly, your risk management strategies. This includes your risk to reward ratios, how much you are willing to risk per trade,how much size you should use on a trade, stop loss and Target profit levels, how long you should hold a trade and the decision you make when trading.Your trading strategy should also look at your trading routine. This includes both your pre-trading and post-trading routines.(what do you do first before trading and after closing a trade)
When you are able to combine all the mentioned above, you will not only have a successful trading strategy but will become a successful trader. And the only way to achieve that is to disciplinary follow your strategy.
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What are the appropriate strategies and recommendations of Forex Trading?
To me a strategy that is appropriate for Forex Trading is that one you have made yourself tested and you are sure it has all you need to trade.
What is a trading strategy?
This is a set of rules/guideline/procedures/methodology/habit you follow always every time you plan to trade.
I would recommend you make your own trading strategy. This way you are able to know what matches your trading style.
Your trading strategy involves rules and procedures; step by step, beginning with when you make decisions whether to take a trade or not, on when to trade, what you consider to take a trade, which setups to trade, when to enter trade and exit trade, your risk reward and so on.Your strategy should be well designed in a plan and you should make it appoint to trade only your plan. Trading discipline is a key in trading if you want your strategy to work.
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