Forex Trading Strategy and Choosing the Right Day
Forex Trading Strategy - Three Steps of Development
The three steps of development are:-
- Emotions
- Complexity
- Testing
Emotions and intuition cannot be calculated mathematically. Mathematics is the only thing a trading system has to work with. So the first and most fundamental principal of trading system development is that every rule to enter or exit the market must be mathematically justified.
Trading systems grow into more and more complex ones by including rules that take into account more and more parameters. I believe that excessive amount of rules can ruin the successful trading system.
Testing is the absolutely necessary step. You need to have historical price data to test your system.
Choosing the Right Day for Forex Trading
Choosing the right time to trade can make a differences between successful and hopeless forex trading.
It’s proved and highly recommended not to trade on Weekday, Mondays, when the Forex market has recently opened and is making first steps to form a new trend and on Friday’s afternoon, during the big volume of closing trades. The best days to trade are Tuesday’s, Wednesday’s and Thursday’s, So Basically trade between Weekdays.
Good trading..
Topics: Forex |
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