Showing posts with label Forex Tips. Show all posts
Showing posts with label Forex Tips. Show all posts

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)

How much money do I need to start trading?

Depending on the amount your broker requires for margin, you can start trading with an amount as low as $500. Remember that starting out with low trading capital may put you at disadvantage because you will only be able to trade forex in small share lot sizes.
Howerver, don't wait until you have hundreds of thousands of dollars. First, trade a demo account or two (or three) until you are comfortable with the platform and can show at least some signs of being profitable. Then open an account with a broker that lets you trade microlots or nanolots. This will let you get live trading experience with less than $500 at risk.

How to instantly improve your forex trading performance and move it to the professional level

Group A (73%) Losing. Jumping from one forex robot to another, sometimes trying to trade on their own by following some complicated strategy, or even placing trades on a hunch...
Group B (16%) Somehow managing to break even. Using one or two strategies, however not enough confidence to follow the rules. As they claim "the strategies were not consistent enough" so they would sometimes "break a rule, here and there"...
Group C (7%) Placing long term trades, watching the news at all times, having trouble sleeping, as one economic report or change of goverment in some country would rapidly turn their forex position into a nightmare.
Group D (4%) Making consistent profits day after day. Losing days could be counted on the fingers of one hand. Following one strategy and never ever breaking a rule. Sleeping well at night knowing that the next day will be just as profitable as the previous one. Taking long vacations. Living a happy life...