Traders have been in debate to what the best Forex trading strategies are for years. That debate is likely to continue for many more years to come. What most people that are new to Forex trading want to know is what is the best and how can we identify it as the best. I want to first of all consider what a trading strategy is then look at two different types and asses them both.
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A Forex trading strategy or system is simply a set of rules a trader will use to enter, exit and adjust his trade. The strategy may consider fundamental analysis, technical analysis or a bit of both. The answer to which is the best cannot be determined by simply looking at the results of a strategy but by looking at the trader as well. Psychology is the single biggest issue traders' face when carrying out a winning or losing trade. The ability to be able to stick to your own rules during a losing or winning trade can be challenging. It is for this reason many traders will turn to automated trading systems to beat the psychological issues they are faced with. Auto trading using EA's has its benefits but it is a proven fact that markets are in fact random which means a strategy working today may not work tomorrow.
What about a mixture of both?
You could be the best analyst in the world and still be a terrible trader! How many times have you taken a trade with all your analysis in your head then exited early or not taken the trade at all. A common scenario is not taking the planned trade because you couldn't commit then taking a random trade that wasn't planned and losing. Sounds ridiculous when you read that scenario but it happens every day.
Imagine a system where you could use your own analysis to set up a trade then use a trading system to take over and carry out your settings so you didn't have the Psychology to deal with. Surely this would be the best Forex trading system. The good news is these trading systems are about but not many people are giving them away. You could however have a program coded for you that takes trades based on your rules and eliminates the psychology. If you have a system that works on a manual basis but only works with certain market conditions then this could be the best Forex trading strategy.
If you have been seriously considering getting into Forex Trading, given that 90% of people fail in this industry, I suggest you consider taking a class. It's not as easy as opening a trading account with a brokerage house and begin trading. Indeed for some it may be. Some, a very small percentage of people, may actually be successful with this. For this group of people, they could probably do nearly anything without benefit of having taking a course to learn it. However, the majority of us need to be taught something new in order to be successful.
Here are some of the things you will learn by going to forex trading school:
o Charting and forecasting the market
o Step-by-step instructions on how to be successful in this business
o Their proven techniques, not gimmicks, about what works in this industry
o World Currencies and why currencies fluctuate
o Factors that contribute to these fluctuations
Here are some things you will want to look for to determine how reputable a forex trading school is:
o Their teachers are already successful using the school's method of trading
o They don't offer gimmicks but simply a proven track record
o The school is willing to show you their portfolio to prove their track record
o They don't offer you guarantee but rather are realistic about the success/failure ratio of investors in currency trading
o They don't offer the "secrets" of forex trading
o Keep in mind these are not secrets
o They are this instructor's proven strategy he or she is willing to teach you
Once you have done your research and have compared several schools against one another, next check out the forex blogs/forums. Read peoples' comments about various schools. Believe me, they'll share the good, Forex trading the bad, and the ugly about a school. They'll help you determine the ones that are simply trying to make a fast buck from those that are serious and reputable.
Consider this, if you do your homework prior to selecting a school and are diligent in your research, you will already be on the winning side of being successful in this industry. Why do I say this? Anyone willing to be sucked in by gimmicks and "get rich quick" schemes are setting themselves up for failure.
There is a lot of money to be made in forex trading - $3.2 trillion a day are traded in currencies. With a lot of knowledge and patience you can have your share.
