Although trading is a highly dynamic activity which requires a constant reassessment of market factors, players behavior it could not be chaotic and guided merely by situational analysis.
Each experienced trader knows the true value of using strategy. If speaking figuratively, acting without a strategy you are alike to a man who tries to find something in a dark room: he moves by touch having no idea what surrounds him.
The strategy is the light giving you a clear understanding of possible obstructions, existing “free” and safe ways to success and different influencing factors.
Here are several recommendations concerning the choosing strategy:
- Select simple and clear strategy;
- Try to get more about the strategy’s author, you should be sure he/she is not a theoretic distracted from reality and has the needed competence;
- Use no more than 4 indicators within a single strategy
- Always test the new strategy on your demo account, use it only when it demonstrates good results
- Use stop-loss trading
- Measure strategy success in the points not in cash
From where to start? I offer you three best strategies of the 2019 year.
Following the trends belongs to the simplest and most profitable strategies. Traders with different experience level could use it. It is a waiting strategy. You should identify the signal factors serving as the calling to action and wait when these factors appear. If speaking easier, noticing the market increasing you should buy, when the market falls – start selling your assets. A single point: this strategy good in the condition of a stable market, it is impossible to monitor the trends in a period of instability.
It implies acting ahead of time. The agreement is opened before announcing significant economic statistics that will influence the price of assets. It allows making money on trend impulses. It is also a simple strategy suitable for newbies. To succeed you should always have the actual economic and financial calendar and be able to predict the investors’ reaction.
It is a lightning-fast profit strategy implying both big profits and serious risks. Traders open their agreements just for a few minutes. Optimal trade time is between the opening of London’s session and closing Japan one. You should open the agreement when the price is placed between orange and red lower lines. Your stop-loss should be near 3%. This strategy requires lightning-fast reactions.
About author: An experienced trader with 2 years of hard work in conditions of the challenging environment. Personally tested mentioned strategies at the beginning stage of my career and even created some several strategical ways of generating good profits. Freelance writer at Zacks and co-founder of GS Diamonds