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The Sine Qua Non Of Creating A Trading Strategy In Forex
Forex, which is preferred by investors who want to improve their existing capital by trading in financial markets, stands out with its advantages. Of course, we can't talk about risk-free forex. But seeing the risks first allows the damage to be lower than the return. Because investor psychology can be constantly based on winning, it is also difficult to admit that it is wrong. In these cases, the tendency to take risks rises, while the expectation of return falls over time. If the risk is greater than the targeted return, it means that a strategy is being followed that is contrary to forex logic. In order for all this not to happen, trading discipline and strategy are needed, rather than directions involving emotions. After setting healthy and regular return targets for making money with Forex, investing by applying daily trading strategies is the general condition of success.

The First Step Is To Look At Price Movements

The first step in building your strategy is to analyze the price movements shown by charts throughout the day. Information about instant price movements is obtained using Trend lines and triangle formations, increasing and decreasing trading volumes are observed. This transaction determines at which point to enter and exit the transaction. When graphic formations are used appropriately, you can easily reach the most reliable entry and exit points.

Scalping The Most Popular Of Strategies

The investor's most popular profit strategy is scalping. It is often used in transactions during the day. Scalping, which is never missing from the strategies of those who want to profit from instant price movements, performs the targeted return in less time under the influence of leverage. The most common strategy implemented in scalping is to immediately change the direction of the position as the transaction becomes profitable.

Essential trading strategies; Stop-loss

Determination of the stop loss point should be strictly present in trading strategies. Because stop-loss allows you to create a defense against sharp price movements. Stop loss orders are usually placed 15 pips down from the last bottom point of the price chart, while Buy profit orders are placed twice as high as the range from the current price level to stop loss level. But the points determined vary according to the strategy.

Beware Of Classic Strategy Mistakes!

Finally, it is necessary to talk about strategy mistakes made in the forex market. It is useful to know the mistakes that many investors fall into when creating strategies and avoid them. Among them, the most common mistake is to open an excessive position according to the collateral. This action will also risk increasing your losses. Creating a position against the trend, that is, thinking that the trend can end at any moment, taking a position in the opposite direction is again one of the most common mistakes. Be careful not to trade at a single parity without providing risk distribution, and stick to the plans, strategies, and goals you have set without taking your position unless otherwise.

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