The following subjects all need to be considered as part of your strategy, and details on each are provided through the blue links.
Click on the link to a simple strategy near the bottom of this page, which you can use to get started.
Before you even think of putting on a trade, you need to have a money management plan in place. Failure to do this will virtually guarantee you will lose all your money.
Poor money management is probably the single biggest cause of ruined trading careers. Even the greatest Forex trading strategy on the planet is likely to fail without proper money management.
Forex strategies need to be "tailored" to suit the Time Frame you are planning to trade. A Forex trading strategy based upon a 15 minute price chart will vary greatly from another based upon daily charts.
Successfully day trading Forex currency is going to require some of your attention... more than the two minutes a day some shady "system sellers" are flogging. If you believe otherwise, you're going to be in for a few surprises, and a bumpy (expensive) learning experience!
Invest in your trading future properly and there can be great rewards. Take it lightly and your results are likely to reflect the effort you've put in.
Mini Lots are a Great Way to Reduce your Risk Exposure
If you are new to Forex, or your trading account size is under $20,000, you should use a Forex Mini Account. The added flexibility you'll enjoy trading mini lots means it should be a part of your Forex currency trading toolkit.
You need to understand and use the Forex trading edges that are available to you. Having the ability to "swing the odds" your way is a tool you need to use. There is risk associated with every trade, but how you use use your edges will make the difference between success and failure.
You will need to determine suitable Entry and Exit points which are likely to meet your expectations of profits over a given time period.
Another key consideration will be when to take your profits off the table. If you have traded Forex, you will know how quickly a "profitable" trade can turn into one that is draining your trading account.
The way in which you enter and exit a position will have a profound impact on your trading success
The other side of this point is knowing how to control a trade that is not going the way you had expected. Often the typical Stop Loss mentality of "cut your losses quickly" is not the most successful Forex strategy.
Together, all these components contribute to a solid Forex trading strategy. If you are not incorporating some of them, you will be at a disadvantage and with currency trading, you want every advantage available to be working for you.
If there are parts of the Forex trading strategy you don't understand, send me a note via the Contact Us page and I'll get you further information.