Are you looking for the ultimate forex winning strategy that will make your trading journey a success? Let me share with you which strategy helped me gain success in earning profit through trading and why it is worth the try.
What is a forex trading strategy?
Forex trading is a trial and error process. It seems impossible to avoid losses and failures as they are part of the journey. A wise trader shall not only let their mistakes remain as pure mistakes but make the most out of them by learning from such experiences. One way of learning from your personal and other traders’ experiences is by incorporating the lessons and realizations into a working trading strategy. But what exactly is a trading strategy?
A trading strategy is a laid out plan of all the steps and considerations to take in order to achieve your trading goals. Generally, it is a system followed by traders in deciding what trading decisions to take or when to buy and sell currency pairs, Before following a specific strategy, one must think first about their personal trading goals and look for or develop a strategy that will best help them realize such goals.
What to consider in choosing the “right” trading strategy?
To be honest, any trading strategy you can look for online is not a one-size-fits-all strategy. This means that not because this strategy is working for a successful trader doesn’t mean that it will definitely work for you as well. One mistake beginner traders commit is following how big time traders do their thing without considering that they are already years in the industry, has wider knowledge and experience, and a higher amount of money willing to lose.
What all traders especially the beginner ones should take in mind is that most of the time, the only strategy that will ultimately bring you to success is your personal strategy. But starting from scratch is also almost impossible. This is when trying out multiple strategies is helpful because the more you try, the more you learn and eventually realize what works and what doesn’t until you finally develop your own.
Still, if one must fully commit into a single trading strategy, they must look for one which allows them to analyze the market and confidently execute trades with sound risk management techniques. You can consider aspects like position sizing and risk management. But most importantly, you should choose the one that suits your trading style, schedule, and goals.
Top forex trading strategies of all time (part 1)
- Positional Trading – based on its name, position trading is keeping a position open for a long period of time until it peaks. Because of that, this strategy is a long-term one ranging from weeks to months, or even years. It is primarily focused on fundamental factors like how economic factors affect markets or thorough technical predispositions, which are essential in forecasting trade ideas.
- Price Action Trading – the dynamics of this strategy is based on the analysis of historical prices. It can be used as a stand-alone technique or in conjunction with an indicator. Some methods to determine support/resistance levels which are generally used as entry/exit points are: Fibonacci retracement, using candle wicks, trend identification, indicators, and oscillators.
- Swing Trading – swing traders look to take advantage of rang bound as well as trending markets. They enter long and short positions by picking “tops” and “bottoms”. Oscillators and indicators can also be used to select optimal entry/exit positions and times and swing trade positions are usually being help from a few hours to a few days.
Top trading strategies of all time (part 2)
- Range Trading Strategy – those who use this strategy trades around support and resistance points. Technical analysis serves as a primary tools and it is said to be working well in markets without significant volatility and no discernible trend
- Day Trading Strategy – this is a short-term strategy where traders trade positions (single or multiple) within the same trading day before markets close. Pros include substantial number of trading opportunities and median risk-to reward ratio while cons include the need for lengthy periods of time investment and strong appreciation of technical analysis.
- Forex Scalping Strategy – it is opening and closing multiple positions throughout the day in order to take small profits frequently. Traders who commit to this strategy prefer to use highly liquid forex pairs as spreads are generally tighter.
My personal forex winning strategy
As I have said, the right strategy for a trader to follow is the one they personally developed through time. When I was still starting my trading journey, I also experienced some failures from a series of trials and errors. I still do even until now. I tried and is still trying new things especially the mainstream ones and those which are on trend. That is part of the process. However, if there is one thing I learned all through out, that is I have to be wise in incorporating all the knowledge out there into my own way of trading.
Personally, I am a day trader. I usually place my trades between 5am-11:30 am during Mondays to Thursdays (sometimes even Friday). My strategy is unique but simple. I wait for a breakout then a retest for confirmation. I value market liquidity and make the most out of the time when London and New York sessions overlap. It took me some time to finally develop a working strategy which helped me gain profit consistently. If yours is not in the list above, it may take you some time as well before you find yours. Or perhaps, the right one for you is also the one you are yet to develop. Just don’t forget that no matter what strategy you commit yourself into, you will stay disciplined as it is the key to making things work.
Let me know about your thoughts and questions by sharing them on the comment section below or by sending me a private message. If you need help with starting out on your trading journey, let me help you with my services so I can share with you my personal tactics that led me to success.