6. Strategy
What is a trading strategy?
As everyone knows, success in Forex are making only 10% of all participants. In most cases, a recipe for success has only two ingredients: nerves of steel and a good trading system or strategy (TS). If with nerves of steel all clear, the trading system with respect to the uninitiated, most issues can occur.
In specialized dictionaries we can find a definition for the TS: the system of rules and signals on the basis of which the trader is building its trade. This means that a trader to trade blindly follow the rules previously adopted by the trading system, eliminating all the emotions in decision making. Any trading system gives the so-called trading signals. Trading signal is a kind of command for action, which fully complies with the rules and used vehicle, which can be one of the following values:
• opening a long position;
• Closing a long position;
• opening a short position;
• Closing a short position.
More experienced traders build their own vehicle, but what beginners use a ready-made trading strategies known authors. It is difficult to say which of the known trading systems more efficient, everything is relative. In order to compare them to study them and try. There is not even effective, but that is exactly suited to you or that vehicle. Indeed, as traders, TC can provide signals for aggressive, more profitable in certain situations, but also more risky trade, while the other vehicle will be issued at least a moderate profitable and less risky signals. Then everyone decides for himself.
