Many traders struggle to make it in Forex and more than 50% eventually give up. But Forex requires a lot of patience and perseverance. Most people are usually profitable in their first days of trading Forex because they are able to adhere to the rules and their knowledge is still fresh. But in Forex to make it, its best if you adhere to the rules. Sometimes the rules may not be enough because of a wrong strategy. In this article i will discuss a way in which one may improve their existing strategy to make it profitable.
Technical analysis
1. Support and Resistance
This is one of the most important tools that every trader needs to know how to use. Support and resistance lines help provide the best entries and exits for a trader. They also help remove any bias from the market and also facilitate both counter trading and trading along with the trend. Of all tools i think support and resistance can really make a difference in your trading if combined with your existing strategy.
2.Pivot points
Support and resistance lines are subjective. The skill of drawing them accurately may take time to develop and also drawing them largely depends on one's Forex knowledge. If you are one of the people doesn't want to waste time drawing the support and resistance you may opt for the pivot points. They work just like the Support and Resistance and they remove any bias one may have and above all they are looked at by many traders in the world thus prevent cases of being on the wrong side of the market.
Fundamental analysis
Economic news events carry a lot influence on the market. Some traders make their trades entirely based on the outcome of the news events. However if you are a trader that's not well vast with the fundamental analytical perspective of trading you only need to care about impact of news. The best thing to do in this scenario is to avoid trading on days of high and some medium impact news. If you cant stay away, trade after the news release or if you have existing orders move your stops to avoid significant loses. Also always remember to check for the upcoming news events of the day or the week depending on the type of trader you are before placing any trades.
image.jpg
Opt for a higher Time frame
If you can handle being patient a higher time frame is a way to go. Higher time frames are highly profitable and comfortable to trade on for those trading part time. Most Forex strategies work best on the higher time frames.
Back testing
After every strategy you develop try back testing it. Back testing can be done in two ways; manually and automatically. Manually its done by identify the possible entries and exits from the historic data. Using automation involves use of trading robots. You may opt to get a coder or code it yourself or learn how to use the Dukascopy visual jforex. Its quick and takes less that an hour to learn how to use it. Happy trading Smile
Technical analysis
1. Support and Resistance
This is one of the most important tools that every trader needs to know how to use. Support and resistance lines help provide the best entries and exits for a trader. They also help remove any bias from the market and also facilitate both counter trading and trading along with the trend. Of all tools i think support and resistance can really make a difference in your trading if combined with your existing strategy.
2.Pivot points
Support and resistance lines are subjective. The skill of drawing them accurately may take time to develop and also drawing them largely depends on one's Forex knowledge. If you are one of the people doesn't want to waste time drawing the support and resistance you may opt for the pivot points. They work just like the Support and Resistance and they remove any bias one may have and above all they are looked at by many traders in the world thus prevent cases of being on the wrong side of the market.
Fundamental analysis
Economic news events carry a lot influence on the market. Some traders make their trades entirely based on the outcome of the news events. However if you are a trader that's not well vast with the fundamental analytical perspective of trading you only need to care about impact of news. The best thing to do in this scenario is to avoid trading on days of high and some medium impact news. If you cant stay away, trade after the news release or if you have existing orders move your stops to avoid significant loses. Also always remember to check for the upcoming news events of the day or the week depending on the type of trader you are before placing any trades.
image.jpg
Opt for a higher Time frame
If you can handle being patient a higher time frame is a way to go. Higher time frames are highly profitable and comfortable to trade on for those trading part time. Most Forex strategies work best on the higher time frames.
Back testing
After every strategy you develop try back testing it. Back testing can be done in two ways; manually and automatically. Manually its done by identify the possible entries and exits from the historic data. Using automation involves use of trading robots. You may opt to get a coder or code it yourself or learn how to use the Dukascopy visual jforex. Its quick and takes less that an hour to learn how to use it. Happy trading Smile
