How to build a good trading strategy?

My forex trading success is due to two things.

1st - trading method
2nd - self discipline

               A professional forex trader will use a simple forex trading method.It won't be a complex method.Many losing forex traders don't have any good strategy to trade forex. They may be using multiple techniques and different time frames.The key to success in forex trading is you must have a well defined simple trading strategy.

                     If you are using multiple techniques, then take a resolution from here onwards not to use them.Use only one or two techniques.Never change your strategy and time frame because there is no holy grail in forex trading.All strategies will fail at any time.

Good strategy is experience mixed with smart brains and still nerves. Observation and attention to detail and to the indicators. Fundamental analysis, news analysis, knowledge of each other and its collaboration - that’s the way it works. Or go make some scalping 😁

For me the best way to build a good trading strategy is true practicing and learning from your mistakes. No matter how much books you read the knowledge will never be full without real actual trading, simply because market is kind-a hard to predict. For this purpose I prefer to use demo account to test different ideas/ strategies ect.

Most successful traders use a mechanical trading system .
This is no coincidence. A good mechanical trading system automates the entire process of trading. The system provides answers for each of the decisions a trader must make while trading. The system makes it easier for a trader to trade consistently because there is a set of rules which specifically define exactly what should be done. The mechanics of trading are not left up to the judgment of the trader. If you know that your system makes money over the long run, it is easier to take the signals and trade according to the system during periods of losses. If you are relying on your own judgment during trading, you may find that you are fearful just when you should be bold, and courageous when you should be cautious. If you have a mechanical trading system that works, and you follow it consistently, your trading will be consistent despite the inner emotional struggles that might come from a long series of losses, or a large profit. The confidence, consistency, and discipline afforded by a thoroughly tested mechanical system are the key to many of the most profitable traders' success.

As above said, it’s absolutely true that good trading strategy can be actually built by trading on your own. Because no books can teach you as much as you can learn by analyzing.
One need to have proper plan for trading, self confidence and needs to be mentally prepared to take risk and bear losses if any. One also needs to set goals want to achieve and re-assess them regularly.
Apply a simple trading strategy, keep calm and trade with self discipline.

Without repeating what everybody said so far, building the perfect strategy, also means to be able to adapt to different situations, as things in our time are changing rapidly every second.

A good strategy is combination of fundamental and technical analysis designed based on your own trading experience . Place your trade based on knowledge of each and every aspect. Stay confident, disciplined, patient, optimistic but keep only realistic expectations. Keep on practicing, refine your trading skills by learning from your mistakes.

A good trading strategy is the portfolio of various strategies known and applied in different situations. Knowing how to adapt and apply the strategies to all the market conditions is one of the key requirements to build a good trading strategy.

I found the best but i don not have a money to invest

Hero76 posted:
Good strategy is experience mixed with smart brains and still nerves. Observation and attention to detail and to the indicators. Fundamental analysis, news analysis, knowledge of each other and its collaboration - that’s the way it works. Or go make some scalping 😁

also agree on the important of psychology in trading! you should be able to accept a loss but keep going...

good planning and forecasting as well is important, add to the recipe and a flexibility to try different techniques 😄

After all, the strategy is your approach that leads you to your ultimate goal. It has to reflect your personality, trading style preferences and skills. Will you scalp or will you go for the long run, it all depends on your goals and plans.

zooz10 posted:
I found the best but i don not have a money to invest

what do you mean by the best? can you share a bit more what it is exactly?

prakash104 posted:
My forex trading success is due to two things.

1st - trading method
2nd - self discipline

               A professional forex trader will use a simple forex trading method.It won't be a complex method.Many losing forex traders don't have any good strategy to trade forex. They may be using multiple techniques and different time frames.The key to success in forex trading is you must have a well defined simple trading strategy.

                     If you are using multiple techniques, then take a resolution from here onwards not to use them.Use only one or two techniques.Never change your strategy and time frame because there is no holy grail in forex trading.All strategies will fail at any time.

If all strategies will fail at any time, why not changing the strategy then to remain successful? How can we address the complexity of the forex market with simplicity?

Demo trading can help you a lot if you are sure that the demo environment is really close to real account of your broker. However there are some descent brokers providing good Demo environment exactly for building strategy purposes. Another things that might help, is find web live trader, watch and learn and apply!

agree about the demo account importance. I read a lot also on other discussions here that this is a must in testing the strategies.

I suggest browsing ForexFactory.com and picking up some good books:

1. Market Wizards (by Jack Schwager)
2. The New Market Wizards (by Jack Schwager)
3. Reminiscences of a Stock Operator (by Edwin Lefèvre)
4. Trading in the Zone (by Mark Douglas)

Then get ready for your 10,000 hours of screen time.

Why 10,000 hours...?That is another book by Malcolm Gladwell: 'Outliers: The Story of Success'

Or as an alternative: If you can't beat them, join them...

A Simple Trading Strategy - Candlestick Cross & Candlewick Cross.

At the start of Every Month, Every Week, Every Day Do the Candlestick & Candlewick Cross, but especially at the start of every month. The Candlestick is broken into 2 parts, the Body and the Wick.

 Candlestick Cross: Place Horizontal Lines at High and Low of Candlestick. Then draw lines from Low to High and High to low to the next gridline.

Candlewick Cross: Place Horizontal Lines at Low and High of Wick and draw lines from High to Low and Low to High.

When the next Candle moves above the upper line that's a buy signal and below the lower lines that's a sell signal.

Works best on Longer Time Frames, but you can use it on any Time Frame.

Good Luck & Happy Trading!!!

You know what I think, these Elliott Wave Theorists forget every other Technical Indicator, trend lines, the lot just so they can get their flat, their triangle, their double bottom and anything else they can think up. I think it is the Elliott Wave Theorists who manipulate the market and I think it is a Bankers Theory.