Mark Thomas offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: What Is Your Forex Trading Strategy? Author: Mark Thomas Category: Currency Trading Word Count: 409 Keywords: forex trading strategy Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
A forex trading strategy will mean different things to different people. Everyone has varying amounts of experience, financial backing, and risk profile. While many people get lured in by offers they see promoting potentially high returns for a small initial outlay, the reality of successful forex trading is really quite different. Beginners will often fail to plan for the future and fail to understand the importance of developing their own forex trading strategy. While most people will have a general idea of how they will determine their trades, they don't actually have a proper plan for how they will go about it. Make sure that you document your philosophy, checklists, and processes. Undertake regular reviews to ensure that you are sticking to it. This will give you the discipline and structure that is vital to profitable trading. Some elements of a good forex trading strategy include: Trade Decision Making How will you decide which trades to make? Will you be using certain technical indicators or following a specific charting technique? Document the exact approach that you plan to take and the decision making processes involved. Make sure that your approach is based on a sound theory that is backed up by testing and a record of long term profitability. Equity and Risk It is advisable to define how much you are prepared to risk on each individual trade. You need to consider the potential risks of every position and understand how this might impact on your bankroll. Make sure you don't over-commit on any individual trade no matter how confident you might be. Decide on a percentage outlay before you even begin. Perhaps look at something as small as 1% to 2% as the limit of your risk when you start out and gradually review this over time as your experience increases. Money Management You should always have an awareness of what funds you have available and what funds you might have at risk. Ensure that you limit your exposure at all times. Make sure that you factor in any open positions when you asses your investment and risk profile. Set your targets and then stick to them as much as possible. Try to think of yourself like a trader that works for a bank or other financial institution that would have strict criteria and parameters that would dictate their trade activity. While you don't have the same constraints, you should still adopt a disciplined approach through utilizing your own forex trading strategy. Mark Thomas is the creator of Trade on Track - a secure web-based application that allows traders to track, analyze, and improve their trading. Visit http://www.tradeontrack.com for more information on how to take your trading and profits to the next level. ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
