For you to succeed as a Forex trader, you must use a Forex strategy that you are comfortable with. More so, it needs to be consistent, which means its effectiveness must be proven. Fundamentally, there is no need to try to reinvent the wheel because there are many technical analysis techniques that have been in use for decades and they still work well today. They include price chart analysis, trading breakouts, price action, trend analysis, and 50% retracements, among others.
When looking for an effective Forex strategy, try not to be swayed by all the upmarket graphics that many Forex sites use. Most of these sites are just trying to market something that may not even work for you. Although reading a price chart is something that almost anyone can do, knowing when to trade is something totally different. In fact, this is what separates winners from losers. Therefore, what you need is a strategy that allows you to use your own discretion in choosing when to trade and which trades to take.
A good number of Forex traders believe that automating the entire trading system eliminates the mistakes that come with emotions. The main problem with a mechanized system is that it may not be able to survive all market situations because the trader can always override the system when he or she feels like it. This means that the perceived benefit of eliminating emotions is nonexistent.
Before you employ any Forex strategy, the most important issue you may want to think about is its record. Fundamentally, you want a strategy that has a record of profitability and consistency. Therefore, you should only stick to Forex strategies from successful and experienced Forex traders, especially when you are just starting out. Having a mentor is probably the fastest and the easiest way to make money in the currency exchange market.
A good Forex mentor will teach you how to use effective and profitable Forex strategies that they have and are still using; otherwise it is just a scam. It may be difficult to tell whether the strategies that your mentor is teaching you are the same ones they are currently using; however, if they respond to your queries with precision and offer reliable and useful information, you can assume they are legitimate.
Finally, it is important to remember that being a profitable trader depends largely on how you deal with your emotions. If you have not mastered how to control them, you need to start learning. There are great books and other resources out there that can help you. However, a good Forex strategy can generally only be picked up from a successful Forex mentor.