Most successful trading strategies rely on a carefully thought out well executed plan. Without devising such plans, it’s impossible to ensure calculated wise trading moves. Most successful Singaporean Forex traders claim that they follow a stringent plan and do not stray off these devised plans no matter the situation. Most of the failed Singaporean Forex traders, on the other hand, did not have any strategic plans to begin with and only blindly followed what other traders did. The following are only some effective Forex trading strategies that you should know and inculcate as you plan ahead:
Keeping a trading diary
As a beginner Forex trader, you’d do well by keeping a trading diary where you can record your trade moves and use as an efficient tool for learning from your wins and losses. A trading diary will give you a clear picture of how you came up with those winning trade patterns as well as what not to repeat in your trading patterns.
Applying order limits
Applying order limits on your trade positions is highly recommended for those beginner traders and is still used even by the professional Forex traders. The use of Limit Orders and Stop/Loss Orders will help minimize your trading loss while making sure you still achieve your desired trading profit. This is perfect for keeping an objective trade decision and are very useful especially for those traders who can’t afford to monitor their positions all the time.
Use of Technical Analysis
Technical analysis is a market approach that Forex traders make by studying historical market patterns through the use of trade charts. The analysis is best used to determine a trending pattern for support and resistance. These are boundaries professional traders have set in order to map out the market’s direction and to forecast a possible breakout.
Use of Fundamental Analysis
Fundamental analysis is another market approach that Forex traders make by studying huge heaps of data concerning the concerned currency pair’s macroeconomic conditions. A currency’s interest rate, level of unemployment, and geopolitical events are only some of the top areas Forex traders consider whenever making fundamental analysis.
Knowing Common Forex Trader Mistakes Beforehand
A carefully planned out strategy will entail eliminating the common trading mistakes shared by most Forex traders. It will be wise to identify what these common pitfalls are beforehand and to ready oneself in order to create a highly viable winning strategy.