Are you using the best forex strategy possible? That is the question that just about every beginning trader is going to ask themselves at some point.
This question usually comes up after a strategy suffers a loss or outrights fails. Even if the failure was because of circumstances that our out of our control, as opposed to a mistake by the trader, the question will still be raised.
Frankly there is only one method to decide what is the best forex strategy and that is trail and error.
Nearly any proven forex strategy will have profit potential. Some have a greater profit potential than others, but you must remember that usually those with a greater profit potential come with extra risks, which increases the potential for failure as well. On the other hand, those will less profit potential will have less risks attached to them.
So which one is better? That is simply a matter of personal preference.
Similarly, just about every forex strategy can be lumped into one of two categories: long term or short term. Those categories should be self-explanatory and honestly it is possible to find a strategy that utilizes both long term and short term strategies.
Strategies that would fit the short term category can provide quick as well as substantial profits. However, they can also incur quick loss if things don’t quite go the way you would like them to. Short term strategies require you to watch the market very closely so you can find those ideal times to buy and then to sell.
On the other side, long term strategies will generally be more stable. You will probably be holding onto the currency for a longer period of time so you can ride out the market’s small fluctuations as you wait for the opportune moment to sell. Long term strategies are a little more laid back and do not require you to keep a constant eye on the market.
It just comes down to a matter of personal preference.
The best advice is to just try as many strategies as possible. Do this by experimenting with paper trading as opposed to actually putting your own money at risk on an unknown strategy.
If the strategy is working and it fits with your personal preference, fantastic, and if it does not work or fit with your personal preference nothing has been lost and you can either find a new strategy or continue with your current strategy.
However, as far as the best forex strategy available do not fall for any so called advice that claims to be the surefire, no fail, 100% guaranteed strategy. Nothing is guaranteed in the forex market.
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