Profitable Forex Strategies

There is no doubt that every beginner investor dreams of creating such strategies on the Forex market that will bring him regular and, above all, large profits. How to go about it? Can anyone develop such a strategy? How to invest in Forex to earn not only good but also stable? The right strategy is the basis in this case. So what is worth paying attention to?

Investment method

Where should you start when building your own Forex strategy? You should choose the appropriate method of investing. Depending on individual preferences, you can use, among others with methods like:

• classic technical analysis,
• scalping,
• fundamental analysis,
• moving averages strategy,
• day trading,
• game with the trend,
• market geometry,
• 1-2-3 formation,
• Forex Martingale
• swing trading,
• Elliott wave theory and many others.

It is impossible to say which one is the most profitable or the easiest to use, even by an inexperienced trader. However, all of them generate certain profits. However, it all depends on the assumptions made by the investor, as well as on the method of capital management, and finally on psychological factors which, although often overlooked, have a huge impact on the investor's success in the Forex market, regardless of his knowledge or experience.

Assumptions of the chosen strategy

Choosing a specific strategy is not enough. It is also up to the investor to formulate its assumptions. Particularly important in this case is:

• choosing a reputable broker to keep the account,
• types of markets,
• hours of concluding transactions,
• basic principles of capital management,
• risk analysis at specific times.

Assumptions of the selected investment strategy on the financial market Forex  must be based on an in-depth analysis of hard data. There is no place for intuition or premonition in this case.

Trading Book

Each investor, after determining the assumptions of his strategy, should write them down in one place, e.g. in the so-called trading book. It is very important that such notes are always at hand. In the trading book, it is also worth writing down all market moves, especially the missed ones. This is a valuable lesson for the future that will help you avoid similar mistakes in the long run.

In this simple way, a transaction history is created, which is the perfect starting point for drawing conclusions. Additionally, in the trading book you can create the so-called a checklist in which you can write down the conditions for opening a given position on the market, closing positions, as well as realizing the earned profit or closing an order immediately when it generates losses.