Friday, October 14, 2011

How to start creating your own trading strategies?

According to opinion of many trader that For starting your own strategy you should have at least at least 2 years experience on forex market. Before that you are not ready!

I would disagree with that. A person might need 2 years to become profitable, but that's no reason to not try to develop your own strategy as soon as you get a general idea of how the market works.
You can only sit around reading what others have written for so long. At some point, you've got to try implementing ideas. These can be ideas from others, or they can be your own. Sitting around thinking "I haven't traded for 2 years, so I'm too ignorant to try anything on my own" isn't going to make you a successful trader.
What kills most people's accounts is poor risk management, not bad ideas on when to open and close trades.
Naturally, all new strategies, no matter what the source, should be tested on demo first.
Maybe I just missed smth - if we are talking about experimental strategies, you can start creating them on your first day of trading... but if we are talking about really working strategies (also with intelligent risk management) - they just cannot be generated without rich experience (it is just my opinion)

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