Winning Forex Trading Strategy

Hi Forex Traders!!

Have you ever experienced the quest of the Holy Grail? A vivid and non-stop search for the perfect trading system that miraculously collects pips, even while you are sleeping….

I am sure that most of us have encountered this dream, at least for a short while, until the balloon bursts and the dream of easy cash fades away. This realization is sometimes painful, but those who still desire the riches and benefits, which the Forex market has to offer, can embark on a life changing path. Becoming a Forex trader is a hard job, but one that is very rewarding and well worth the energy and efforts.

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THE TRUE HOLY GRAIL

Now we know what NOT to look for…. What do we Forex traders need to accomplish to become successful and profitable?

The true winning Forex trading strategy is YOU and your brain. Forex trading is a business and needs to be treated as a business to enable success. This is a crucial and vital realization. Approaching Forex trading with the same approach and mentality as a multi-million Dollar company will surely help build the required experience.

This means that Forex traders, just like business owners, need to have a vision, goals, processes in place, knowledge, evaluations, risk management, money management, strategies, tools, iron discipline, great negotiations skills, understanding of psychology, etc etc.

There is not one particular factor that is more important than another. A Forex trader will not become successful by mastering only one element. No, a trader becomes a true Forex master by mastering all of these aspects. There must be an all round approach to remain in balance. A failure in 1 department could lead to the fall of the entire business structure.

MULTIPLE ROLES

Very similar to other single / independent business owners, the retail Forex trader is often left alone in making all of the decisions.

1)      Companies have entire departments specializing on particular (routine) tasks and the segregation of duties ensure that the process is simplified, controlled, measurable, transparent, and cost efficient.

2)      Banks have entire Forex trading departments collaborating to make the best trading decisions, risk management control, and trading discipline.

3)      Independent retail Forex traders have the massive responsibility to be their own stock holder, boss, manager, CEO, accountant, analyst and trader. Not an easy task to fulfill and certainly not a job for the lazy and faint hearted.

The real secret of becoming a profitable trader is not a fancy get rich scheme. It is applying proper management across all of the fields mentioned above (i.e. risk management) with discipline, patience, vision, and motivation. That is the true best strategy.

PATH OF SUCCESS

To support your development and growth as a Forex trader I am going to lay out a path of essential elements which need to be thought over and planned. All of these elements have already been discussed in previous articles. The thing is that all of these articles only touch base with one particular part of the trading success.

This article is different, as it attempts to piece together all of the knowledge and process in a stream lined fashion, which enables a full view for the Forex trader. We outlay what decisions need to be made, what areas of expertise to be acquired, and what management processes implement.

The winning Forex trading strategy starts as follows.

1)      First of all, we want to focus on questions regarding vision and how to approach Forex trading. How do you want to engage with the Forex market? The best is to make an evaluation of your current situation and see what areas you may need to improve at? How are you going to accomplish that? Do you need to make investments? What is your motivation for trading?

All these elements are part of your initial business plan and business scope. Please read more about many important items such as:

  1. Forex trading investments part 1
  2. Forex trading investments part 2
  3. Forex trading seminars
  4. The value of a trading room
  5. Being a professional Forex trader

2)      When you have those questions cleared, we can move on with the next process and that is establishing goals and a trading plan. A trading plan is an absolute must for every Forex trader. We need a guide when to trade, when not to trade, what to use for our decisions, how much capital to trade with, etc.

3)      The trading plan is something that consists of many elements. One of which is to know more about the system and strategies how you want to trade. Read more here:

  1. Forex trading system
  2. Forex trading strategy
  3. How to build a Forex trading strategy
  4. How to build a Forex trading strategy part 2
  5. Real example of a Forex trading strategy part 1
  6. Real example of a Forex trading strategy part 2
  7. Real example of a Forex trading strategy part 3

4)      Once all of the above is cleared up, we want to focus on the trading psychology, risk management, and money management side of your plan. This ensure that you understand yourself, the market, your risk acceptance, your potential for winning, the need for iron discipline and big patience, etc.

  1. Trading psychology part 1
  2. Trading psychology part 2
  3. Money management
  4. Stop losses
  5. Stop losses part 2
  6. Take profit
  7. Adding to winning trades

5)      The next step is learning more about the market structure and the way the market behaves and moves. The more knowledge we have about the market the better. Read more here:

  1. Forex trading price action
  2. Forex trading using no indicators and chart patterns
  3. Forex trading impulsive moves
  4. The power of momentum
  5. The power of divergence
  6. Importance of time part 1
  7. Importance of time part 2

6)      The last step of the journey is choosing the tools and the methods you want to use for making decisions at a particular spot in the market. Now that you understand how the market behaves, you can identify how you want to measure that movement. The tools you choose will help you with determining your actual trading decisions regarding entries and exits, trade management, and evaluations. Most Forex traders only focus on this element, but it is in fact the very last element to review. Only after the previous steps have been completed can we be confident in our approach towards the market and be able to realize true success. Read more about tools here:

  1. Trading using Fibonacci
  2. Trading break outs
  3. ADX
  4. RSI
  5. Fractal indicator
  6. Pinbars

That summarizes the key elements for every Forex trader. Once you have those elements in place and you have processes that describe your approach regarding vision, goals, knowledge, evaluations, risk management, money management, strategies, tools, trading psychology, etc, then you are well on your way!

Thanks for your reading and hope you enjoyed the article. Any sharing of the article would be greatly appreciated.

Is there something in this document that has inspired you? Is there an element that you hadn’t thought of and would like to approve after reading this article? Please let us know down below in the comment section! We would love to hear from you.

Good Trading!!

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