Design Your Forex Trading Strategy – An Easy Guide

Do you want to know more about how to design your forex trading strategy? Watch our latest video and get profitable trading results.

How to design your forex trading strategy

Designing a trading strategy is one of the most important things you will do as you trying to get your career as a traitor off the ground. Much like determining your goals, if you do not have a trading strategy you are simply swinging wildly and a market that is dominated by professional traders who have access to an almost unlimited amount of knowledge and capital. After all, some of the people in this market to you are jumping into are trading for large banks and hedge funds, and therefore have massive amounts of support, well beyond what the individual trader will have.

With that being the case, it’s very important that you decide how you want to trade by developing a strategy BEFORE you start trading with real money. In other words, you are going to need a demo account, which is easily found at most brokerages. You need to figure out what indicators, position size, trend following mechanisms, or anything else that you feel comfortable with in order to make money.

While there are a multitude of trading strategies freely available on the Internet, the most important thing is to be able to trust your strategy. The only way you can do that is if you will build up some type of history with that particular strategy, via the demo account. For example, you can have a strategy that’s proven to work overtime, but if you are not comfortable trading it, you WILL mess it up. But by having a history with this particular strategy, you know that over the longer term you were going to make money all things being equal.

Most strategies can work overtime, it really comes down to the trader and whether or not they have the ability to follow that strategy. Most do not, and that is one of the biggest reasons why people lose money in the markets. If you have a strategy that averages a 15% return every year, you truly can make money like that, but you have to be able to trust and follow your trading strategy. By far, that is the biggest challenge the traders tend to face.