What is a live forex trading strategy? It is a strategy with which you can actually trade the forex market live. When you say things like “trade the forex market live”, it is only because there is a simulated forex trading environment on which one can trade, but none of it is real. All the profit made from this simulated platforms are not real, the same goes for all the losses. From experience, a lot of traders feel that it takes more to trade the live forex market compared to what it takes to trade a simulated market environment. As such, a strategy that worked well in a demo platform may not be of any good in a live platform. Understandably, this is as a result of neglecting some core factors that determine the functionality of a forex strategy.
Demo trading is as important as live trading in the forex market. All strategies need to be tested out on a demo platform before going live. This will help the trader to understand the functionality of the platform he or she may trade with (like the MT4 or MT5 trading platform) it also helps to gain confidence in their strategy if it is a good one. It is best to trade on a demo platform fires before going ahead to trade in the live market.
WHAT TRADERS NEED TO KNOW ABOUT LIVE FOREX STRATEGIES
Different strategies are used to trade the forex market as a result of the fact that the forex market is not static. It can change from one form to the other, and as such, require suitable strategies to trade the efficiently. However, all standard forex strategies have the same things in common. Standard in this context refers to strategies that result to more profits than losses when traded with.
1. THE TRADER’S PERSONALITY:
One of the reasons many fail in trades is because their strategies do not go well with their personalities. A trader that has low tolerance for anything slow will not want to be involved with a long term trade or it may turn out to be a disaster.
Many stack their chart with lots of indicators. According to experts, using a lot of these trade aides can distort the real activities going on in the market as it appears on the chart, contributing to noise.
3. RISK MANAGEMENT:
The forex market is naturally risky and every trader should have that in mind before trading. Any strategy for trading the forex market that does not have any risk management plans are not worth trading with. There should be orders configure into the strategy to avoid being too exposed to risks and losing money.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.