Why You Really Need A Forex Trading Strategy: How to Build?
Forex trading requires a good strategy that must be built and planned well prior to trading. Here are the necessary steps of how to plan and build a good forex trading strategy. What is a trading strategy? In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity. What is a trading plan? A trading plan is a structure, or a set of guidelines, to define your trading activity. It can be an extremely useful tool to help you focus on planning and executing your trading strategy. Forex trading is an exiting way to earn money provided that a good strategy is planned before starting to trade and also well followed during trading. Four basic factors must be considered in order to build a forex trading strategy which will be illustrated below. First, the planner should determine the time fra