One of the main problems that many new traders in the Forex market face are they cannot use one strategy for one currency pair. Forex market is very volatile and it is quite natural for the trader to lose in the market with the even most successful strategy. Traders who lose in the market with their strategy think that there is a problem with their strategy and try to select a new strategy. This is the thing traders should not do with their trading account. When you are trading in Forex, you need to use one single strategy for your one currency pair. It is important to stick with the strategy that you understand the best even if you loses some of the trades.
How to select that one strategy?
Traders will wonder how they can choose a single strategy when there are so many strategies available on the online. In fact, these strategies are not all used by a single trader. Only one trader uses a single strategy. Most of the time, these different strategies have been used by different traders as they have different mindsets about the Forex game. If you look at the professional Australian trader then you will notice that most of them are using their own trading strategy in the market. They simply chose a trading strategy which tends to suits their trading personality and based on that they execute high-quality trades in the market. It’s very normal to have few consecutive losing orders in the market. But this doesn’t mean that you have to change your trading strategy. When you face some losing trades in the market take a break and assess your trade history to improve your winning edge in the market.
Price action trading strategy
Also, not all traders can understand the market behaviors accurately. Most of the time, it is the Price Action Strategy that is used by traders in the CFD trading industry. If you do the research then you will see that traders who are using some other strategies are also successful in the market. It does not matter if you are using price action or not. What matters is if you are using one consistent strategy to trade the currency pair of your market. However, statistics suggest that the traders who trade the higher time frame using price action confirmation signal tend to produce better trading results in the market. But before selecting your strategy to make sure that you understand the strategy and can relate yourself to that certain strategy. Use the strategy that you feel most comfortable with.
Stick to your strategy and develop it
Do not think your strategy is not working if you lost trades at the beginning. No strategies are perfect and you need many developments to your strategy before you can successfully trade the market with it. Many traders begin trading the market with their strategy and lost trades. They select another strategy and do the same thing. If you are doing the same thing, your strategy will only lose and you will never win your trades. You need to develop your strategy to work this magic on your trading. Do not change your strategies without developing it. As a trader, you must learn to accept the loss in the market. Always follow proper risk management factors in every single trade. In the eyes of the trained professional perfect risk management factors is often considered to be the Holy Grail in the forex trading industry.
Summary: trading is all about perfect execution of the trading plan. As a professional trader, you need to trade the market based on your rational logic. If you think that you can hit the jackpot in the forex market then you are completely wrong. Always focus on consistency in trading and trade with proper risk management factors.