Why do you need a Forex strategy?

Hello, my name is Artyom. Not so long ago I began to trade in the Forex currency market, buying currency cheaper and selling it more expensive. In principle, I earn money, but I began to think about creating my own trading system - one of my friends advised me to quickly develop a strategy on the Forex market and trade strictly on it. Is it necessary, if everything is going fine anyway?

Many newcomers, coming to the Forex market, see price fluctuations and immediately rush to catch these same movements in an attempt to make money. On the history (price charts) are always very clearly visible pointswhere you need enter and where go out. This inspires false optimism among any novice trader.

In fact, the closer you get to the right border of the screen, the more foggy the picture becomes and the more uncertain the future is seen.

At the right border of the screen at the time of making a decision, the trader is working in complete uncertainty. He does not know what will happen in the next minute of bidding and where the price will move. This aspect of trade is uncontrolled and the trader is not able to influence it. After all, the Forex market is “driven” only by a lot of money. it millions and even billions of dollars. The fate of small traders, or the “crowd,” as it is often called, is to predict these movements and try to make money on them.

Mathematically calculated that the probability of profit on Forex is only 25%. Everyone knows the price can go up or down⇓. The probability of just guessing is 50/50.

But even if the trader has guessed, you need to remember that before the price moves in the right direction, it can go against the position, pick up the protective stop order and only then go in the right direction. Likelihood of this too 50/50. Thus, the overall probability that the price will go in the right direction and at the same time the trader will still be in the position is average 25%.

Such numbers prepare only one thing: if a trader is at random enter and go out out of position then he doomed. Winning in such a situation is ultimately easy impossible. Can do two, three, five successful deals, but in the end the market will take its own. Therefore, in order to take money from the market, the trader must have an idea, at the expense of why and whom he will do it. This idea is calledtrading strategy.

Forex Strategy is a list of ideas and rules that a trader has a chance to fulfill in the long run beat market crowd. Having no strategy, the trader himself replenishes the ranks of the crowd.

It is known that there are three types of players on the market: there are bulls - they earn on rising prices; there is the Bears - they get money at a decrease in price; pigs - they just "cut." Which group to join everyone's personal choice.

If a trader intends to approach trading as source of income, and not as a game of chance, then the idea and strategy of its behavior in the market should first appear. Then a period should occur testing this idea in real trading on a demo account or with a minimum deposit on a real account. And only after receiving positive result within 2-3 months, a trader can carry this idea for big money.

This is the only sure way to become a trader. There are many who want to cut it, but few of them reach the finish line. The market does NOT tolerate amateurs and will never reward them for their labor.