As though the trader did not trade, but if in his trade there are some rules, it is already system. He knows about it or not – the essence of the matter it does not change. Trading strategy is a set of certain rules by which the trader is guided at the making of transactions. Trading strategy is an obligatory, natural and irreplaceable element of high-grade trade on Forex and not only on it.
Every day hundreds traders come on Forex, thousand transactions are made. One leave with losses, others remain with profit and continue the career. What is behind of all these? What will we see, having looked in this difficult mechanism? Certainly, the most complicated processes. One of main springs without which functioning of all process of trade on Forex is impossible – is trading strategy. Trading strategy helps the trader to get profit.
Therefore each trader faces necessity of a choice of trading strategy or working out own. One takes another’s strategy, others think out the own one, and the third – both those and others, but without trading strategy anybody cannot trade. Let’s make some analogy.
If to compare the trader to the bicyclist, trading strategy is a bicycle, and driving is a process of trade on Forex. Driving is closely connected with features, as bicycle, and skills of its owner. The professional can pass on any bicycle, the truth is on one he will feel better, and on other driving will be very slow and strained. So is on Forex. Skilled traders can get profit under the most unforeseen circumstances, using one or other trading strategy. And the beginner will “fall”, using any strategy. Though there are also exceptions. There are some trading strategies on which beginners have a chance to get profit, but there not many of them and on a long distance nevertheless it is necessary to face complexities.
Certainly, having the identical bicycles, all people will go differently. One will go on equal footpaths of the park, the second – on mountains or to skip on springboards. A bit later everyone will understand, what type of a bicycle is necessary to him for his requirements and will change a bicycle, already being guided by personal preferences, instead of councils of the guru. On Forex change of trading strategy meets even among professional participants. Work, family, friends, plans and even technique can affect the Trader and force him to change trading strategy. Though the desire to receive more profit remains the main reason of change of trading strategy or to lower risk. Well, it is good, if trading strategy is a bicycle, and the trader is a sportsman-bicyclist, what is the Forex then?
Forex in the given example with bicyclists represents a surface on which the bicyclist goes. Forex is both asphalt, and a dirt road, both mountains, and the rivers, and all the rest. Asphalt or a dirt road is currency pairs, and each of them will demand from a bicycle of presence of certain skills. On what road to go, what currencies to trade – is a private affair of everyone. The majority will prefer quiet driving on asphalt and to dirt roads. There are racers and the sportsmen who are carrying out tricks on springboards less often. Those who love extreme driving on mountains and breakages even less often come across, risking each time and receiving unforgettable sensations.
Both in sports and on Forex, everyone makes his own choice; the choice of trading strategy is an individual preference of everyone.
Before you make up your mind to make a forex investment or start forex trading yourself, better find a nice forex book and read more about foreign currency trading market – this will save you from tons of troubles and traps.