How to Build Your Own Trading Strategy – MasterForex

How to Build Your Own Trading Strategy

How to Build Your Own Trading Strategy: The beginning of a new year is a time of great ambitions and of
set new goals. Leave your purposes for next year for
is a great way to set up a plan of action for the people who have
for the next 12 months. It works just as well with trading – having a
strategy allows you to plan your actions as far as the market is concerned.
Read books, articles, ask other traders for advice – everything works
to a certain extent. However, building a plan based on your own
may be the most appropriate approach.

This involves asking yourself many questions and reflecting on
the experience you’ve had in trading so far. It may be
useful to pick up a notebook and actually write down your conclusions, even
if it means that minutes later you have a new idea a taches the
previous ones.

Drawing up a plan

What things do you have to think about when you’re planning a strategy? We are going to
to go over them together one more time. You may have multiple and different
strategies, so writing down these points can help you be more proactive.
consistent and save time in the future, since you will have a list
of tasks to follow.

First of all, it is important to learn how the market works. What
You mean buy low and sell high? What do they represent?
What influences the movement of the price and the price?
form the cycles?

Understanding is the key to a good strategy. You can
learn it step by step, there’s no need to try to cover it all in one.
a single day. Rest and process new information before moving forward.
Don’t get stressed out with a lot of new things to learn.
little by little, you’ll progress.

Secondly, you need to decide the instrument and the interval of
with which you’re going to operate. Which instrument do you prefer? Are you a
scalper, a day trader, a swing trader or a position trader?
How much do you like to keep your position open? And the most important thing,
how much time are you willing to devote to the day each day? Decide
the conditions with which you are comfortable is an important step to the
time to plan a strategy. This way you will be able to save
time to operate and include it in your routine.

Then choose the tools you are going to use. You can use
indicators such as Moving Average and MACD, in addition to the lines of
support and resistance to define the trend. Combine them with
oscillators such as the RSI or the Stochastic to find points of
market entry. You can also learn the patterns of candles –
work well when you want to determine the direction of the price and a
possible trading opportunity.

Don’t forget to use the features of the platform – the
Take Profit and Stop Loss levels will help you to control the amount
and acceptable losses. Combine tools
different might help you analyze the graphics better and discover
repetitive cycles.

Finally, learn about risk management and the steps to follow
to limit potential losses. Watch the size of your position
carefully and try not to get carried away.

Practice makes perfect

A trading strategy is not something immovable and a single strategy.
of trading cannot be applied universally at all times to all types of
any market. It is important to constantly improve and learn from
your own mistakes. Evaluate your past operations to make
adjustments to your approach. Try to understand why this or that
operation was closed with or without profit and uses that knowledge in the
future.

Conclusion

There are several important things you should keep in mind when considering
plan a strategy, so don’t hesitate to use a little more of your
time to plan it and make it fit your trading style.
Consistently follow your plan and practice the strategy to be able to
to achieve the desired result.

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