Trading Strategies, Why Are They So Important

No matter what kind of financial instruments you are trading, there are two common requirements for becoming consistently profitable – a set of sound trading strategies and an excellent money management system. Each binary options asset family (currencies, commodities, stocks and stock indices) have unique peculiarities, thus most fundamental-based strategies for trading stocks, for example, will need to be adjusted in order to work well for trading other types of assets.

Properly tested and successful trading strategies are crucial for surviving the financial markets intense competition. You are doomed to fail, if you adopt a trading style which is based on chaotic cross-betting (entering positions on many different assets without following a thoroughly-tested and proven trading system). Thus, systematic trading is the way to go.

Some traders prefer fundamental analysis as a primary prediction method for price movement, while others base their decision-making entirely on technical analysis. A good amount of traders use a combination of both, with fundamental factors being their main source of information, while applying technical analysis to pinpoint important support and resistance levels, as well as possible turning points.

Oh as I told before the absence of a trading strategy is also a strategy. lol.