Strategies in Trading
Strategies is a word that all the traders know. All newbie in the trading world should memorize this word and make their own strategy. Here I mean to say that every trader should try to make his own strategy for trading rather than copying others. There are some good and bad effects of copying other’s strategies.
If a trader doesn’t use his mind and just keep copying the strategy of other successful trader then he will not be able to learn trading. This is because the maker of that strategy will have full control and clear mind of that strategy. He will have the knowledge that what if this strategy not works? then what’s next? But the follower is just like an expert advisor that is following a single path without knowing the results. Robot Trading is also good but blind following of a strategy will lead a big profit for a short time but a big loss for a longer time. The trader will start thinking that this is bad luck today, better luck next time with the same strategy. At that time he should think about the strategies and the point where he lost.
Making Strategy is hard?
The answer is “No”. When trader keep practicing in the market then he begin to understand the expected movements of market. He use several indicators and analysts reviews. Traders keep using their mind to understand the expected movement. They need to be in the 5% successful traders rather than 95% losers. Every trader can try to be successful but the reality is not all the traders are successful. The market is lucrative but it is volatile too. If someone is winning the someone is losing too. So, keeping this thing in mind, trader can make strategies. It’s not a big deal. Trader can make his strategy with the help of indicators. He can make strategy with fundamental analysis and technical analysis. He can make his strategy with the chart patterns. There are hundreds of strategies that trader can use in his trading.
Some traders analyze market with the candle formation. Some use bars formation and some analyze the market on the basis of lines intersection. Trader should dive in depth to understand the market. There are two analysis in the market, one is fundamental and other is technical. Most of the traders use technical analysis, but it doesn’t means that fundamental analysis do not have impact. If trader see the schedule of news then he will understand that how much these political and financial news impact on market. Keeping these things in mind, trader should make his strategy.
Strategies can be based upon times, charts, technical and fundamental analysis as we have mentioned above. Now trader should make strategy for longer or shorter time, whichever suits him/her best. Most of the traders use short term strategies, just like scalping, short tradings, small time frame trading, hedging, martingale etc. These strategies are not easy to do. These strategies require a lot of time to understand which market is best for that.
This will help trader to make a longer term plan for his trading. It will include his expenses, earnings and savings. Everything needs plan and plan needs strategy. If trader doesn’t have a good and durable, then he may lose his hope and money. Losing money will not hurt that much, but losing hope will hurt a lot. So, readers may understand the importance of strategies in any trading.
If you have any question then comment below. Please like us on Facebook.