Posted by forex at 7:22 AM
Read our previous post
1. Assess the strengths and weaknesses in your current Forex strategy over an extended period of time. Make a list of what's working in your strategy and what's not. Make sure you've given yourself enough time to develop some patterns and a number of results. Changing your strategy on a daily or weekly basis will be counterproductive, since such short periods of time will not give you the chance to develop a sense how productive your approach to Forex is in the long term. Randomness is always a factor to consider when engaging in currency trading, and the only way to beat randomness in the long run is to wait it out.
2. Establish goals and a timeline. Strategies and tactics only make sense within a framework that includes established goals. It's hard to know if you're succeeding unless you have an idea of what success is. In order to improve your currency trading strategy, you need to know what a win looks like. Are you looking to make a career out of your trading? Earn extra cash? Roll the dice on a potentially big payday? You'll also want to decide on a timeline for your trading activities--are you planning for a month? A year? A decade? Your strategy is likely to vary, depending on your timeline.
3. Broaden your research base. Reading daily articles on the minutiae of the forex world may be helpful, but it's only one piece of the puzzle. As noted, several factors influence world currencies, and so it's important to have a broader sense of what's going on in the world. Reading several daily newspapers -- online or in print -- will help you gain a sense of world politics, which can be an important consideration in your currency trading strategy.
4. Ask advice from a variety of sources including, if possible, certified financial advisers. There are no oracles in the Forex world, and, as with many things, many heads are often better than one. A number of strategies can be pursued to achieve success in the currency market. Consulting a number of sources will help you get a sense of alternative strategies so that you can make an informed decision about what's best for you.
5. Get back to basics. Don't be afraid to review the basics of currency trading. As your knowledge of Forex grows, you'll be consulting sources that are more and more technical and precise, but there's always the danger that you'll lose sight of the basics. Establishing and reviewing these fundamentals will help you stay grounded and will help keep you oriented when the going gets tough.