Forex How to find our own trading style

[FXOchartist]

Not all traders will be suitable for using other traders' trading styles even though it may be profitable. This condition is mostly caused by differences in the psychology of each trader. Because every trader has their own uniqueness. Some are comfortable with long-term trading, some are comfortable with short-term trading.

Even though it may not be given much attention by novice traders, finding your trading style can be the start of determining investment goals in trading on the financial markets. We can learn from various sources to find trading tips such as from the FXOpen blog, where there are several steps traders can take to build their trading style.

Here is a summary for building our own trading model referring to the FXOpen blog article:

• Defining a Trading Approach. In this step the trader chooses his preferred trading approach, perhaps trend following, range trading, breakout trading, or scalping.
• Choosing the Currency Pair and Analysing Data. In this step the trader analyzes the pair to be traded and analyzes the data corresponding to that pair. There are various forex pairs and CFD assets, including stocks, crypto, metal, commodities and ETFs. Traders need to find out which trading asset to choose.
• Managing Risk. Even if you understand the character of the asset, risk management is still important to mitigate risk in market uncertainty which sometimes experiences fluctuations beyond expectations.
• Model Backtesting. A backtesting step may be required before actually starting with real trading. This is a step to try the trading system to find out the trading system's performance regarding average win, average loss, and average return, and maximum drawdown.
• Choosing the Trading Platform and Automation. If it is possible for you to have reliable automated trading consider automating trading on a supported trading platform, such as MT4, MT5 or FXOpen Ticktrader

 

[Asahi]

Market movement paves the way for earning profit but proper market analysis helps us catch the flow of the market. False breakouts are always unexpected and traders have to safeguard their capital through proper market analysis. FXOpulence charges low trading spread to traders. They allow traders access to educational resources.