A beginner in Forex trading faces a choice what trading strategy to follow. It’s hard to find a perfect variant that would suit your character and requirements 100%. However, such step is a necessity because it makes no sense to work on the foreign exchange market without clear rules. A trader becomes a common gambler without such rules. Similarly one can waste money in the casino. There are a lot of efficient strategies, but most of them suit only a very narrow segment of trading audience. There is no universal secret of success at Forex, so beginners have to experiment with different systems, trying to adjust them to their needs. Sometimes such transformations may result in creation of new separate models of a trader’s behavior. They suit their creators most of all because, when being developed, all the psychological characteristics of a person’s nature are taken into consideration.
The way to development of a personal trading strategy is long and thorny. But there are certain tips that can make this way shorter. For example, you had better trade with only half of your deposit. Also avoid investing in one currency more than the fourth part of the available funds. You should monitor the Stop-loss settings, because they must be kept within a certain range. These rules are not that difficult to follow. You can always correct them if neded.
You should start with an appropriate level of aggressiveness of your trade. First you should analyze your character and make conclusions. Impressive and highly emotional people should take a more conservative approach to trading. But if you are a real fan of high frequency trading you may choose an aggressive approach. In this case risks are higher, but the prospective profits are more attractive as well.
Try to find better in and outs for your trades. This process is based on working with trading indicators. It’s not difficult to select them, but you should address this issue with due diligence anyway. Most indicators operate by the basic models, which makes them interchangeable in many cases. But there are exceptions you should know about. So the main operating indicators should be chosen very carefully.
The last thing you should know to create a strategy is the right choice of the time interval and a currency pair. You should analyze a trading history to decide on a proper trading tool. Assess all risks possible, think of the prospects, and try out trading with various trading tools. Timeframes should follow your biological clock and working schedule. All this things will help to make the right choice. Test your trading strategy again and again and be patient.