Traders in the Forex market have to develop a strategy to place their trades on the market. There are many strategies available on the online. Also, many websites are giving free strategies and tips to people who are interested in developing a strategy. Traders do not like to work hard and take a strategy from any of the websites they like and use it in the market. The result is not always making a profit. These traders are always losing their money though websites have been telling them these profits work perfectly in the market. What they do not tell to the traders is that traders need to work on these strategies and modify it to their needs in the market. You cannot expect a chicken to turn into a beautiful burger in your house even if you bought that chicken from the grocery store. You have to cut the chicken into pieces and use spices to make your meat for burgers.
Figure: Perfectly optimized trading environment offered by Saxo
Most traders do not understand this simple thing. They directly use that strategy in their account without any modification of that strategy. It is needed to make the strategy actually work in the market. If you look at the professional Aussie traders then you will notice that every single one of them trade the market with their own developed trading strategy. They also trade with the reputed brokers like Saxo so that they get the best trading environment. So if you truly want to become a profitable trader in the market then you need to learn about the market details and use your knowledge to develop the perfect trading system which will suit your trading personality.
How to modify strategy
There are many tips that can help you to turn any simple strategy in the market to fit in your currency pair and market movement. Before you modify your strategy, you need to know the market movement. Not every market in forex provides the same movement. The European market is best known for its best movement in Forex and you cannot use a strategy which is for the European market to use it in the market with slow movement. If you are trading CFD for short period of time then it’s better for you to use the demo trading account as it will eliminate the risk exposure in trading. Try to learn the price action trading strategy and incorporate with your existing system. Price action trading strategy is very much popular among the professional trader since it allows them to execute the high-quality trades in favor of the long-term trend.
Analyzing market trend: You can use your strategy before modification by analyzing the market trend. If your strategy is right but you are placing trades in the wrong market movement, you cannot make money. You need to analyze the trend of Forex market before you made modifications in your strategy. As a professional trader, you need to learn the art of fundamental analysis since it will help you to measure the strength of the existing trend in the market. It’s true that doing the fundamental analysis is little tough but if you stick to it then within a few months you can easily master this skills.
Using in demo accounts: Strategies sometimes do not work as they are not fit for every market. You can check your strategy if it fits in your market by checking that in your demo accounts. Maybe, this strategy is right for you and you need to use it in other market movements.
Conclusion: Trading in Forex needs the strategy to be perfectly developed and modified. Modify your strategy to make a profit in the market. Always make sure that you are trading in favor of the long-term trend with proper risk management factors. As a full-time trader, you main focus should be on quality trade execution.