Thursday, March 19, 2009

Forex Trading Strategy

A set of analyses that a forex day trader uses to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis charting tools or fundamental, news-based events. The day trader's currency trading strategy is usually made up of a multitude of signals, which trigger buy or sell decisions. Forex trading strategies are available for free, for a fee or are developed by the traders themselves.Forex trading strategies can be either manual or automated. A manual system involves a trader sitting at the computer screen, looking for signals and interpreting whether to buy or sell. An automated trading system involves the trader "teaching" the software what signals to look for and how to interpret them. It is thought that automated trading takes out the human element of psychology that is detrimental to a lot of traders.Both automated and manual day trading strategies are available for purchase over the internet. It is important to note that there is no such thing as the "holy grail" of trading systems. If the system was a perfect money maker, the seller would not want to share it.

1 comment:

Prasad Rao said...

Holy Grail may not b there.. But there does exist a Holy Grail if one believes. Having a thorough knowledge of TA is not enough. THis knowledge shud be back up with proper analytically skills. 90% people think the trade shud go in the direction they have taken a position and this makes them ignore everything and they loose saying TA doesn't work. TA is not only about technical s indicators but also about knowing market psychology and the ability to change with the trend.

Regards,

Prasad Rao