Forex trading strategy

Here are some forex trading strategy (you can also use it for option) that can save your life:

• Set a Stop Loss: Before entering any trade, decide beforehand the amount you are willing to lose and stick to it, set a stop loss on the trade before you enter. I usually set maximum loss of 10%.
• Do not be emotional about a trade, you will lose some and win some – just know it.
• Do not be greedy.
• Stick to your game plan, move your stop loss as the market moves in your favor and let your profits run. My plan is to go for low leverage, minimum $100 entry, and focus on one currency pair mine is EUR/USD.
• Don’t be influenced: You have your own game plan stick to it.
• Draw resistance and support line so you will know when to sell and when to buy.
• Don’t enter vary volatile market where you can see price up or down very fast and the bounce very fast too. This is a situation where you can not predict. This is gambling.
• Trading is a game of probabilities, and over the long run as long as you stick and implement sound strategies and stay consistent.
• Success is much more likely to come. To be a successful trader you should never take a position that puts substantial capital in jeopardy. In actuality you will rarely find successful traders who risk more than 10% of their account in any trade. You might want to start small and increase your trade sizes as your confidence grows.
• Know your risk vs. reward ratio: The minimum ratio you should be using is 2:1, so if you are successful on 50% of your trades you are doing well. For instance, if you are long GBP/USD and you want to earn 30 pips you should not risk more than 15 pips. You should never risk 30 pips in order to make 10 pips.
• Have adequate capital: You should never trade with money that you cannot afford to lose.
• Trending or Neutral: Learn to analyze the market; is it a trending market or a neutral market? In a trending market then follow the trend. in a neutral market buy on lows and sell on highs as long as you use stop-losses you are controlling your risk.
• Although forex is 24/7 not every hour is suitable for trading. If you are looking for volatile, liquid market then I suggest enter when London starts and end their session. London Market Hours: 3:00 am to 12:00 noon EST.
• Don’t fight the trend
• Averaging – don’t do it: One of the most common mistakes traders make is the continuing adding of a losing position. Averaging will be the death of short-term trades.
• Know why you are in the trade: Keep a trading log, and write down why you entered a trade.