View Full Version : Trading with a Strategy

05-22-2011, 11:59 PM
Trading with a Strategy

Trading successfully is by no means a simple matter. It requires time, market knowledge and market understanding and a large amount of self restraint. ACM does not manage accounts, nor does it give market advice, that is the job of money managers and introducing brokers. As market professionals, we can however point the novice in the right direction and indicate what are correct trading tactics and considerations and what is total nonsense.
Anyone who says you can consistently make money in foreign exchange markets is being untruthful. Foreign exchange by nature, is a volatile market. The practice of trading it by way of margin increases that volatility exponentially. We are therefore talking about a very 'fast market' which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiment and market expectation. Timing a trade correctly is probably the most important variable in trading successfully but invariably there will be times where a traders' timing will be off. Don't expect to generate returns on every trade.
Let's enumerate what a trader needs to do in order to put the best chances for profitable trades on his side:
Trade with money you can afford to lose:
Trading fx markets is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are 'involved with your money' the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need to survive should never be traded.
Identify the state of the market:
What is the market doing? Is it trending upwards, downwards, is it in a trading range. Is the trend strong or weak, did it begin long ago or does it look like a new trend that's forming. Getting a clear picture of the market situation is laying the groundwork for a successful trade.
Determine what time frame you're trading on:
Many traders get in the market without thinking when they would like to get out, after all the goal is to make money. This is true but when trading, one must extrapolate in his mind's eye the movement that one expects to happen. Within this extrapolation, resides a price evolution during a certain period of time. Attached to this is the idea of exit price. The importance of this is to mentally put your trade in perspective and although it is clearly impossible to know exactly when you will exit the market, it is important to define from the outset if you'll be 'scalping' (trying to get a few points off the market) trading intra-day, or going longer term. This will also determine what chart period you're looking at. If you trade many times a day, there's no point basing your technical analysis on a daily graph, you'll probably want to analyse 30 minute or hour graphs. Additionally it is important to know the different time periods when various financial centers enter and exit the market as this creates more or less volatility and liquidity and can influence market movements.
Time your trade:
You can be right about a potential market movement but be too early or too late when you enter the trade. Timing considerations are twofold, an expected market figure like CPI, retail sales or a federal reserve decision can consolidate a movement that's already underway. Timing your move means knowing what's expected and taking into account all considerations before trading. Technical analysis can help you identify when and at what price a move may occur. We will look at technical analysis in more detail later.
If in doubt, stay out:
If you're unsure about a trade and find you're hesitating, stay on the sidelines.
Trade logical transaction sizes:
Margin trading allows the fx trader a very large amount of leverage, trading at full margin capacity (in ACM's case 1% or 0.5%) can make for some very large profits or losses on an account. Scaling your trades so that you may re-enter the market or make transactions on other currencies is generally wiser. In short, don't trade amounts that can potentially wipe you out and don't put all your eggs in one basket. ACM offers the same rates regardless of transaction sizes so a customer has nothing to lose by starting small.
Gauge market sentiment:
Market sentiment is what most of the market is perceived to be feeling about the market and therefore what it is doing or will do. This is basically about trend. You may have heard the term 'the trend is your friend', this basically means that if you're in the right direction with a strong trend you will make successful trades. This of course is very simplistic, a trend is capable of reversal at any time. Technical and fundamental data can indicate however if the trend has begun long ago and if it is strong or weak.
Market expectation:
Market expection relates to what most people are expecting as far as upcoming news is concerned. If people are expecting an interest rate to rise and it does, then there usually will not be much of a movement because the information will already have been 'discounted' by the market, alternatively if the adverse happens, markets will usually react violently.
Use what other traders use:
In a perfect world, every trader would be looking at a 14 day RSI and making trading decisions based on that. If that was the case, when RSI would go under the 30 level, everyone would buy and by consequence the price would rise. Needless to say, the world is not perfect and not all market participants follow the same technical indicators, draw the same trendlines and identify the same support & resistance levels. The great diversity of opinions and techniques used translates directly into price diversity. Traders however have a tendency to use a limited variety of technical tools. The most common are 9 and 14 day RSI, obvious trendlines and support levels, fibonnacci retracement, MACD and 9, 20 & 40 day exponential moving averages. The closer you get to what most traders are looking at, the more precise your estimations will be. The reason for this is simple arithmetic, larger numbers of buyers than sellers at a certain price will move the market up from that price and vice-versa.

Master Forex IB
10-27-2013, 07:32 AM
Having any strategy makes clear your goals and ways to achieve them. you will know how much profit and loss is possible ,What is the best time for your trading style that will give you some sure profit. So i think a trader should make strategy it may be flexible according to the market situation.

Abu Boccor
11-04-2015, 09:16 AM
Practically, for making profit constancy we the traders have to depend on our trading strategy that we select according to our trading strategy. In my trading career, I am extremely dependable on scalping strategy due to getting profit instantly. For using this trading policy in a proper way, I have chosen MXTrade trading broker which for all times make sure best trading environment for scalping by providing only one pip trading spread.

12-01-2015, 07:44 PM
it is very important to have strategy of trading if you would like to get profit and do not lose your money

Umar Khalifa
12-04-2015, 11:12 AM
There is nobody in this market place who can make profit constancy without using any kinds of trading strategy. To be successful In Forex trading, of course we have to use good trading strategy. I have been using price action strategy in my trading career from my first day of trading. And, my trading broker Trade12 always ensures proper candlestick which is really effective to make profit constancy by using price action strategy.

Hilry Canes
02-04-2016, 09:39 PM
Creating a good strategy is not everyone’s cup of tea, so that’s why one has to sort this out on demo account, if we are good enough then we will be able to find good strategy, but if we lack quality than it can be figured out on demo account. I am able to create good strategy and all credit for this goes to OctaFX broker, I am really pleased with their service given they offer us incredible demo contest in Southampton Supreme, it got unlimited prizes and of course have chance for us to practice.

Abu Boccor
02-18-2016, 12:11 PM
From all trading strategies in my trading career, I like most scalping that?s brings profit in a short time. For using this trading strategy in a proper way, I have chosen MXTrade trading broker due to having proper trading environment for scalping by means of only one pip flexible trading spreads. so, my trading life is very much comfort and profitable

Annette Ashley
03-12-2016, 08:39 PM
We need to remember and understand that using or building strategy is not optional, but it is necessary. It is a mistake that many people make thinking that not making good strategy is okay and they can still win it, this is where the percentage of losers are on all-time high because no one got to learn, but they are always ready to throw their money. I have given enough time to learning that now I am leaping rewards and a lot of credit to OctaFX for making it exciting for me through their demo contest.

Abu Boccor
03-16-2016, 08:56 AM
We the traders who are particularly the scalpers have to choose the regulated trading broker which allows scalping and hedging without any restrictions. For that reason, in my trading career, I choose MXTrade trading broker which for all time make sure best trading environment for scalping by providing only one pip lowest trading spreads without any restrictions.

William Wesson
02-28-2020, 03:59 PM
This strategy includes hanging tight for market instability to reveal a range before trading a break of that range and utilizes a five-minute chart. For illustrative purposes this area fuses the US Non-Farm Payroll (NFP) release as this regularly has the greatest potential to move the market. After the NFP release, hang tight 15-minutes for three five-minute candles to close. Observe the most significant expense and the least price of the three shut candles. Next, submit an entry request to go long at the most significant expense and an entry to go short at the least price. When an order is triggered, targets can be set at double the separation of the high/low channel while stops can be set above resistance for short exchanges and underneath support for long exchanges.

Salman Kashfy
03-14-2020, 07:00 AM
Right strategy is one of the key things if one is meant to achieve anything worthy. I am so happy and comfortable with FreshForex, as they have just the setup to be happy about. My biggest liking is the spread, fast execution of trades and my favourite Rebate program. It all takes me to the right method.

03-29-2020, 02:08 PM
I usually avoid trading during the high impact news release although hotforex allows trading on news but still i find it hard to make money during the highly volatile and unpredictable markets.