Finding the bugs in your trading strategy
Everyone thinks they have the perfect trading strategy. Some people prefer to trade the market with indicators and some prefer to trade with raw price data. No matter which trading strategy you use, the ultimate goal is to make a profit in the long. The new traders often buy expensive trading strategy from the professional traders at Singapore with great hope to make millions of dollars. Within a short period of time, their dreams get shattered. Every trader is different. No matter how good a certain trading strategy is, you need to develop your trading system based on your personality. Creating a trading strategy from scratch might seem an easy task fine tuning is really hard. Now, let’s learn some amazing techniques to find the faults in our trading strategy.
Back-test your trading strategy
Everyone back-tests their trading strategy at the initial stage. But they don’t realize this is a continuous process. The pro traders prefer to back-test a trading strategy once they face a series of losing trades. Forex market is a dynamic market and every economic factor is changing the nature of price movement. Unless you keep yourself updated with the latest market dynamics, it’s normal to blow up the trading account within a short period of time. So, make sure you open a demo account with Saxo and back-test your trading strategy on a regular basis.
Analyzing the outcome
Are you making a decent profit from this market? Are you happy with your trading income? If not, you have a problem with your trading strategy. The successful traders can easily execute quality trades in their online trading account and make a decent profit. If you are struggling to make your life, chances are high you have faults in your trading system. Start maintaining a trading journal and analyze your past trade data. Try to learn new things from losing trades and bring positive changes to your trading system.
Compare your trading strategy
The new traders might have enough experience to analyze their trading strategy. They can always compare their trading strategy with a professional trader. If you have a complicated trading system, you need to make things easier. Try to compare your existing trading strategy with a professional traders system so that you can find the bugs in the system. Some of you might think a complex trading strategy is the best way to make a profit in the long run but if you perform some research, you will understand the importance of a simple trading system. For example, if someone has a substantial amount of experience in the market, they may become prone to illegal practices such as insider trading or some other ways of market manipulation. This could land them in some pretty serious legal troubles. Therefore, in addition to avoiding such illegal ways, one can hire a securities lawyer who can represent them in legal cases. That said, it may be better to stick with a strategy that worked for you rather than adopt a complex one.
Learn from the experienced trader
You might have a very good trading strategy but this doesn’t mean you have the perfect system. In fact, no one in this world can say they have the perfect trading strategy. Being a new trader, it’s your duty to learn from experienced professionals. Join the professional trader’s network and see how they analyze the market. Try to learn from the experienced traders since it’s a great way to boost your profit factor. Stop thinking that you are the best in the market. Always try to bring positive changes to your trading system by learning new things from the pro traders.
Conclusion
Becoming a successful trader is not so hard. If you follow the rules and keep learning new things from your trading mistakes, you can easily create a balanced trading strategy. Making a living out of trading is a very challenging task. You must keep pace with the dynamic nature of the Forex market or else you are most likely to lose money. Try to follow proper money management in each trade since it will protect your trading capital in the long run. Be a confident trader and stop trading the market with aggression as it always results in heavy losses. Consider trading as your business so that you can have a real career in the investment industry.
