In markets that are as risky and volatile as the Forex trading strategy, it is important to have a clear direction and for you to know exactly what you are doing at all times. This will enable you to go about your trading methodically and consistently with is undoubtedly the best way to make money in the long run. Just as importantly, do not expect to be rich quick or make a lot of money overnight as you will almost certainly end up losing money instead.
Trading Strategy
The first step, therefore, is to draw up a plan incorporating what kind of results you want to achieve and how you would go about achieving these results. Keep in mind that if you have unrealistic expectations or want to take injudicious risks, you will find it next to impossible to formulate a sensible strategy that can help you achieve these objectives. Attitude is the most important ingredient in successful trade and in the swing trading strategy
markets what counts is patience, consistency and a long-term approach.
The next step is to decide which currency pair you would like to choose and whether to buy or to sell. You can choose either to place a market order (execution at market prices) or a limit order (execution at the price you specify). Which ever you choose, remember to specify your stop loss price and your take profit price as part of your risk management.
How to Implement Your Forex Trading Strategy
The next important step in the process is to adjust your trade so that you make the most of favorable market trading strategy conditions. For instance if the market moves by 20 pips in your favor, move your stop loss and take profit prices up by 20 pips and continue to move them up as long as the market moves in your favor. This would ensure that you do not prematurely exit positions when there is scope for further profit. You then wait till the market reverses and your stop loss is hit at which point you will automatically exit your position. You can of course choose to exit your position at any time by manual intervention.
If you use automated trading software judiciously, the software will generate trading signals that you can use to determine your timing for exit and entry.
