Trading strategies

[yashwanthraj]

how to use trading strategies?

 

[tradingout]

It depends on your trading style. You could give it a try in demo account and see what helps in your favors and what does not

 

[timsk]

how to use trading strategies?

Hi yashwanthraj,
Welcome to T2W.

Your question is akin to asking how to use a recipe in a cook book. Answer: you follow it as closely as you can - at least to begin with, using a demo account. Only gravitate to using real money when your results confirm that the strategy is working. If you think improvements can be made, implement small changes over time and only ever one at a time. However, if you do this, you must test and record the changes to ensure they have the positive effect you intend and do not adversely impact the strategy's performance. If you make two or more amendments simultaneously, you won't know which one caused the change in the results - be they positive or negative.

If you want to know how to acquire a trading strategy in the first place - that's another matter entirely. You can either develop your own from scratch or, if that's too difficult, find an existing one (developed by someone else) and use that as your starting point.
Tim.

 

[alan5616]

Whichever market you decide to trade, it's not going to be a cakewalk. Any experienced trader has had days/weeks where making money seems to be a doddle and you're on the way to making your first of many millions. The market(s) then turns round and bites you very hard.

If there is one tip that I would pass on, courtesy of Warren Buffett, it's this. "When entering any trade, don't think of how much you will make if you get it right; think how much are you prepared to lose if you get it wrong". Imho, this is the hardest decision a trader has to make. It was the downfall of Nick Leeson, and many others, before and since.

Risk management is the most overlooked part of trading, particularly with novice traders. Manage the risk, effectively, and you have a chance of being successful.

 

[Forexintradiadarwin]

Your question is akin to asking how to use a recipe in a cook book. Answer: you follow it as closely as you can - at least to begin with, using a demo account

There is a big difference, you can copy a recipe (ingredients, tools and preparation details) from a professional chef to replicate the same dish and you'll get a similar or equal dish. In trading even if you are given all the ingredients (technique, tools and strategy) still you won't get the same results than the master who has taught them to you.

That's the problem, it is one of the few professions where you can't replicate the results of your teacher...because at the end the outcome will relay on your very personal experience that you'll add to the technique and strategies taught.

Millions of traders start learning the same techniques and doing the same things, and some learn to trade using indications, oscillators, etc..., others price action, candle stick meaning, Fibo, and so on...

But only a few of them (regardless what strategy, time frame, pairs or technique they use) become successful, why is that? Because the personal touch is what make the whole difference between being successful and a loser. The experience, the wisdom, the intuition (usually based on experience)...to read all that you have learn and put it together in a trade, no master, no coach, no one can teach you that...that's personal and there is only one way to learn it...walking the way. Still, nothing is guaranteed!

Once you have learn all the basics, you have to make your personal trip to the trading world spending thousands of hours reading graphics, trying things, watching the candlesticks, and so on...at the same time that you trade using trial and error until something tick! Then use it once and again, and again, and again....one single successful strategy is all that you need, make it simple.

Remember that you don't need to beat the market, all that you need is to find and pick the crumbs, the leftovers the market leave once in a while and make them yours!

Good luck!

 

[AliForexTalks]

A trading strategy is a systematic methodology used for buying and selling in the securities markets. A trading strategy is based on predefined rules and criteria used when making trading decisions. A trading strategy may be simple or complex, and involve considerations such as investment style (e.g., value vs.

 

[Farm Yard Forex]

First work out what might work for you. No good focussing on scalping strategies if you can't be at the charts for long.

 

[pathsofglory]

A trading strategy is nothing more than a method of buying and selling currencies in the market based on some predefined rules. It involves everything from your risk tolerance to the indicators you’ll use in trading. It defines all you should do based on your preferred trading style, and you should follow your trading strategy as closely as you can. Don't forget to record your trades as it will help you to realise the efficiency of your trading strategy.

 

[Jungletrader]

You need to assess your lifestyle and time your prepared to be at the charts.
I like swing trading frees up my time and is less stressful than say scalping

 

[Rufus_Leakey]

the core and most important variable in any trading system/strategy is the TARGET PRICE.

if you dont know what your TARGET PRICE is, it doesnt matter what else you do or know.

this is the first step in creating a trading strategy/system.

Many trading systems have no target price. For example, moving average crossover, breakout, any system that only exits with a trailing stop, etc.