How to find trading style in forex? There are so many resources we can learn from. One good source is reading the FXOpen blog, there are so many valuable articles about the financial market.
Finding a trading style may not guarantee that traders always making a profit, however, when we trade based own trading style we can more convenience during trading and possibly improve trading skills through experience.
- Defining a Trading Approach. In this step the trader chooses his preferred trading approach, perhaps trend following, range trading, breakout trading, or scalping.
- Choosing the Currency Pair and Analysing Data. In this step the trader analyzes the pair to be traded and analyzes the data corresponding to that pair. There are various forex pairs and CFD assets, including stocks, crypto, metal, commodities, and ETFs. Traders need to find out which trading asset to choose.
- Managing Risk. Even if you understand the character of the asset, risk management is still important to mitigate risk in market uncertainty which sometimes experiences fluctuations beyond expectations.
- Model Backtesting. A backtesting step may be required before actually starting with real trading. This is a step to try the trading system to find out the trading system's performance regarding average win, average loss, average return, and maximum drawdown.
- Choosing the Trading Platform and Automation. If it is possible for you to have reliable automated trading consider automating trading on a supported trading platform, such as MT4, MT5 or FXOpen Ticktrader
Finding a trading style may not guarantee that traders always making a profit, however, when we trade based own trading style we can more convenience during trading and possibly improve trading skills through experience.
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