Why A Beginner Trader Must Build His Own Trading Strategy

by

Daniel Shaw

Many new online traders have heard about online trading strategy. Many courses about Forex market say that Forex trading strategy is what a trader needs in order to succeed in online trading. In this article we will clarify what is this mysterious system and how it can be applied and help you in trading.

Every currency trader sooner or later comes to believe that in order to have a stable income from currency trading he needs to make a trading strategy. If a trader opens and closes positions basing on his intuition only, then sooner or later all thenegative trades will prevail and all the money will be lost. The same result will take place if a trader uses different approaches of trading and analysis all the time, without any clear method of trading and analyzing the market. The fact is that the unsystematical actions and decisions lead to the unpredictable results. And if we add also a human psychology factor to this scenario, so the lack of the trading system and the present of pressure will only increase the risk of failure.

As any Forex trader may guess, a currency trading method is a set of analytical tools that help a trader in his work of analysis and making trading decisions in Forex market. We all know that every person has his own opinion. The same may be said about the Forex trading systems. Unfortunately the perfect trading system doesn t exists, that s why every trader must use his own trading experience in order to create a trading strategy that would show the best results.

Building a trading strategy is a creative job, that s why each Forex trader relates to his trading strategy as his own invention. He believes in his creation and it helps him in trading. With every successful trade that faith in his own trading method grows and gives him more strength to continue Forex trading. Usually traders can hardly explain you their own strategies because they are the integral parts of the psychology portrait of their creators. That s why the same Forex trading method that makes profit to one trader may have no positive result on the trading of another one.

As you can see building a trading system must be an individual process based on the skills of a trader. Though there are many common features between the strategies, each trader includes his own knowledge to his strategy, that is often getting modified during all his life while he is trading. When creating a trading strategy, you can take as a basis one of the existing approaches and make the necessary upgrades by adding new features or excluding the existing ones. The goal is that your strategy must be simple and guarantee you at least 5% of profit.

Daniel Shaw is a successful Forex trader and a webmaster. His website

Forex Platforms

will show you different trading tips and provide you with the latest updates about

Forex Platforms Trading

.

Article Source:

ArticleRich.com