Is there a correct Trading Philosophy?

[Henry]

How does one trade the markets? Trying to trade every tick is sure to blow your account. Ask me about it.

How do you build an account? Do you aim for a % return per week? Do you aim for X pips per week? Do you just take what the market gives you? The last option sounds fine and dandy, but how do you determine what that figure is?

What is the best way to start building an account?

Cheers and have a great day or night, where ever you are.

[swingfx]

Originally Posted by Henry

How does one trade the markets? Trying to trade every tick is sure to blow your account. Ask me about it.

How do you build an account? Do you aim for a % return per week? Do you aim for X pips per week? Do you just take what the market gives you? The last option sounds fine and dandy, but how do you determine what that figure is?

What is the best way to start building an account?

Cheers and have a great day or night, where ever you are.

Watch 4h timeframe, try to make 1% per day green and trade minimal (micro)lot size.
Regards

[adria]

Well, i prefer the intraday strategy compared to the long term basis strategy because of the high profitability and this is a more viable strategy for me who have more time to monitor the market.

I think, this forex strategy is also more beneficial for people who are using an automated forex software where is can place the trade itself according to the market trends and this will continue operating for 24 hours a day.

[jason]

Control on Emotions are very important in forex trading. The most successful strategies are those that give you the following three key aspects:

- Clear defined entry rules.

- Clear rules for placing stop loss

- Clear taking profit rules.

[adria]

I think control on emotions are the toughest part in forex trading. As we all are humans and we get excited with every profit and gets dull with every loss.

Thanks Jason for defining the guidelines to us.

[jason]

Frankly it does not matter what strategies you follow as long as it is not foolish. The key thing here is discipline with your stop losses. Remember - stop loss levels you set for yourself are holy. Cut your position out if you hit your stop loss. Losses do hurt - but they are a part of trading. Rest should fall in place automatically.

[vani]

Originally Posted by adria

I think control on emotions are the toughest part in forex trading. As we all are humans and we get excited with every profit and gets dull with every loss.

Thanks Jason for defining the guidelines to us.

Yeah you're right on this note, In my case I prefer a forex trading strategy where you are not in front of a computer all day waiting for trades to happen. It can be like watching paint dry. I also find that it is harder to keep your emotions in check when you do this. The most important thing when currency trading is to take the emotion out of it. Otherwise you won’t make any money trading.

I prefer an end of day trading strategy as I place my trades at night and forget about it till next night at same time. A company I have found good for this is makemoneycurrencytrading dot co dot uk as I can usually place the trades based on their strategy in 15-30 mins. I work full time and have a family so I can’t spend all day at screen nor would I want to.

[adria]

Well, I dont do that. as i keep the track of all my trades till time time i close them so that i know when yop exit the market and when to hold the position.

[shirley]

I believe in following the trend. Majority of the forex trading strategies and systems concentrates on identifying trends and that is a right approach. Do not try to go against the trend and depending upon the rising or falling trend, choose to go long or short as appropriate. Resisting the trend will result in losing your money in most cases.

[JuliaKhanam]

I'm starting to believe that being successful trading Forex has more to do with your philosophy than anything else.

You cannot trade based on how much money you want to make. You cannot trade based on how much money you need to make. This means that you can't push money into the market, desperately searching for opportunity, risking a large portion of your net asset value in the process.

You must trade lightly.

When you trade lightly, you simply let the market give you the returns that it is willing to relinquish to you. Quite simply, it is not a process of taking.




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Forex Decoder