10 Tips For A Good Forex Trading System - Ratinah

Tips For A Good Forex Trading System - One rule of thumb that every aspiring entrepreneur should remember is that to make big profits, you have to know how to do it yourself - and not rely on the efforts of others. Being independent from others will help you determine what is best for your business.

10 Tips For A Good Forex Trading System - Ratinah

These rules apply to all types of investments, including foreign currency trading, or better known as Forex trading. It is undeniable that Forex is the largest market in the world, which is estimated to have more than 2 trillion US dollars of foreign currency traded every day. This is larger than the size of the New York Stock Exchange, which is about 50 billion US dollars. As such, the Forex market exceeds all equity markets combined worldwide.

With the huge wealth circulating in the Forex market, one of your financial goals is to capture a large share of the $2 trillion average daily turnover in the market. How can you get most of that average turnover if you don't know how you are going to handle your Forex business? While you can't live in the market alone (you'll need a business partner and/or financial advisor to help you), only you can determine what Forex business is best for you.

To make a big profit from your Forex trading career, you need to build your own profitable system—a trading system that will not only generate your Forex income that is worth hundreds but thousands of dollars. Such trading systems are available in the market, but as mentioned earlier, you must be independent—and you must have your own Forex trading system that will help you achieve your financial goals.

For new traders, it is difficult for them to set up their own trading system because they do not have too much knowledge about the Forex market. However, even a novice trader can design a trading system to suit his personal preferences and needs - in just five easy steps!

Before we discuss the five easy steps to a profitable Forex trading system, you need to first learn the three main characteristics of a successful Forex trading system. These are as follows:

1. A successful Forex trading system is simple 

No need for a complicated trading system with too many rules. It is a proven truth that simple systems work better than complex ones, and they have a higher chance of success regardless of the "brutal" characteristics of Forex trading.

2. Successful Forex trading systems cut losses and generate profits

Keep in mind that you need a trading system that earns as much profit as possible and eliminates losses quickly, if not instantly.

3. Successful Forex trading systems follow long-term trends

You will never cover your losses if you only make small profits. Keep in mind that the Forex market is worth $2 trillion US dollars, so there is no point in trading in exchange for a small profit if you have the opportunity to trade for a larger income. Focus on the long term trend and you will be able to see better results.

Now, here are five easy steps in building a profitable Forex trading system:

1. As previously mentioned

Your trading system should be as simple as possible. Integrate several important rules and an extensive investment management system.

2. Always look for long term trends (preferably weekly)

then switch to daily charts and to time entries. This will help you analyze market trends efficiently.

3. The ideal way of trading foreign currencies is through the breakout method

Knowing strong trends in the stock market, Using candles to validate breakouts, Observe market trading volume at breakouts, Don't forget to set Stop Loss, Consult with experienced

4. Always pay attention to every break that you will record on your chart

Which is usually confirmed by the stochastic crossing the bearish divergence. It will be your great timing tool whether you are going to enter a certain deal or not.

5. You must integrate effective time management in your system

Time is gold and is one of your most valuable resources. Design time-efficient trading systems—where you can maximize the potential of your time resources to make huge profits.

6. Range Trading Strategy

This technique is used including to identify support and resistance points when traders will place trading positions around these key levels. The strategy works well with no significant volatility and no visible trend. Technical analysis is the main tool used with this strategy.

7. Forex Scalping Strategy

Scalping is a well-known strategy in the country. This strategy focuses on trading methods on low time frames with the aim of making small profits (around 5-15 pips) in a short period of time (1m-30m).

Usually, scalpers will open positions of up to tens to hundreds in a day. The more liquid the currency pair, the wider the opportunity for scalpers to get profit, because high liquidity makes position execution easier. Some of the indicators that are usually used by scalpers are Moving Average (MA), Stochastic, RSI, etc.

8. Trend Trading Strategy

This is a simple forex trading strategy used by many traders of all experience levels. As for trading with this trend, it tries to generate positive profits by taking advantage of the momentum of the market direction.

9. Carry Trade Strategy 

The carry trade involves borrowing one currency at a lower exchange rate, followed by investing in another currency with a higher yield. In the end, this will result in a positive carry trade. This strategy is mainly used in the forex market.

10. Day Trading Strategy 

Day trading is a strategy designed to trade financial instruments on the same trading day. That means, all positions are closed before the market closes. It can be a single trade or a number of trades throughout the day.

That's 10 Tips For A Good Forex Trading System

Go with a complicated system; it will only ruin your entire Forex trading career. Build a simpler one and see for yourself how profitable it is.


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