Finding the best Forex strategy for your personal trading style requires time and dedication, but can be approached as follows: the best Forex strategy is that which allows an investor to maximize earnings while minimizing time spent doing so. There are adamant believers in technical analysis and also those who subscribe to the more fundamental analysis camp; there is no wrong or right only personal preference. That being said, evaluating existing strategies might help narrow the scope of what works on a personal level. Sites such as Forex Strategies Revealed paint a nice picture of the basics to building a personal system.
1.Making Reasonable Commitments. Generally, investing any more than 5-10% of ones total investment capital on any single trade is thought to be highly risky and excessive, but it is a personal decision. With experience, investors understand that trading is a journey of making money and building assets and not trying to win the lottery in one shot.
2.Some Technical Analysis is Important. Market indicators can sometimes detect at least the general slop of market direction according to past developments. Currency technical analysis is a good example considering that a similar technique is used in the stock market in the use of charts set by different time periods. Here, the trading margins and leverages also become a bit more lucid. www.fxstreet.com is a good way to gather technical information.
3.Follow the Trends. The Forex market has specific trends that all investors should be aware of and that form the basis for the large majority of investor trades. www.forextrendfollowing.com has some great material to analyze. Going against the trend in these markets has statistically resulted in losing money. Using the trends as a guide, one can go long or short depending on the variations of the trending, however following the general direction is widely believed to be the practical approach. In essence, the trick of building the best investment strategy is being able to understand the markets enough to identify such trends and act accordingly.
4.Trade with Your Brain, Not With Your Emotions. The downfall of too many investors is their inability to understand when to sell and when to buy. Emotions are said to have no place in the world of investing because they typically result in the loss of money due to greed or sympathy. Sometimes the market does not go your way, but understanding this and taking it as part of the life of an investor is importantstaying in on a clearly losing investment with hopes that it will turn around seldom yields good results.
Most experienced investors agree that the simplest strategies are often also the most effective. Finding an investment strategy that suits you is a process that is developed through experience and a deep understanding of the market and its behaviors. The more dedication one has to his investing, the greater the rewards he will see, the Best Forex Strategy is employed to work for them.