This is a guest post by Marvin Blackthorne
When you are structuring your forex trading strategy, there are a couple of things you need to define:
1) Find your entry points as fast as you can
2) Find the exit points that can give you the highest profit
3) Stay away from unprofitable entry and exit points
In order to to this, a few steps need to be completed. Here below are the two most important.
Choose the trading time window that best suits you
The first question to ask yourself is: how much time can I dedicate to forex trading daily? Should I constantly check the monitor for one, two, or five hours per day, or should I trade, and check later how it worked? Both approaches can be right, depending on the type of trading. If you are scalping, then you will need to constantly check the situation. If you are trading on a low leverage, for longer periods, you can trade once a day and check later.
Know your forex trading tools and put them together.
There are dozens of tools and forex signals to operate on the forex market, all of them with totally unappealing names like: EMA (Exponential Moving Average), SMA (Simple Moving Average), Parabolic SAR, and so on. The first step for beginner would be to get familiar with them as quickly as possible, but the second step would be the most important and effective: even the best forex trading tool is never enough alone, it has to be used in combination with discipline, patience and trading experience.
This is where forex trading stops being a science (or a gamble) and becomes an art. The expert trader will always find new combinations of tool to be used in different situations to get the best indications to trade. The bad news is: whoever succeeds in doing this will hardly share it with other traders. In this game, the more expert you get, the more lonely you are likely to be!