
Find your own Trading Strategy
A trading strategy is a guideline that you must follow in all of your trades, without exception. This is what determines your buy/sell prices and tells you when to cut your position (in gain or loss). A trading strategy also includes risk management. We don’t copy a strategy, we build it! Your trading strategy must match your investor profile (your personality, your trading preferences, etc.).
If you copy another trader’s trading method, you risk calling it into question at the lightest phase of loss, you will not be able to change it if market conditions change, and above all, you will find it difficult to apply if it goes against your nature as a trader. Whether you swing trade, scalp, or day trade, you must define your own method to become a real trader.
You will read about:
ToggleFind your own Trading Strategy
Before investing in the stock markets, you need to find out which financial markets your trading strategy works best, the financial instruments you will use, and determine the appropriate leverage to properly manage your risk.
Find your trading strategy takes time, a lot of time. You must open a demo account with a broker (regulated by the AMF or the FCA) and practice at length to first identify the elements you want to integrate into your trading strategy, then test it for several weeks to see if it saves you money.
Be aware that depending on the financial market in which you trade (Forex, Shares, Indices, etc.), the performance of your trading strategy can vary greatly. Your strategy may also perform better on certain types of assets (CAC40, EUR/USD, DAX, etc.). Finally, you must choose the appropriate financial instruments (futures, CFDs, etc.) to make the most of your strategy. Becoming a trader does not happen overnight. You will spend a lot of time analyzing your charts. If you still have the motivation to train yourself in trading, this section gives you food for thought to find your trading strategy.
A winning trading strategy is not for everyone
Novice traders often mistakenly believe that there are miracle trading strategies, which make you win almost every time. This is why they often try to copy the strategies of the best trading platform in Georgia. At first glance this seems like a good idea, why can’t a strategy that works with one trader be applied successfully by others? However, in reality, if you give a winning trading strategy to another trader, he will lose. The reasons for the impossibility of copying a trading strategy are multiple :
Time unit used: A strategy that works on a daily does not necessarily work in the shortest term and vice versa (see Trading: Which time unit to choose?)
Psychology of the trader: Each trader has his preferences and a profile of his own. For example, some are more comfortable in scalping and others in swing trading. Applying a strategy that is not in line with one’s investor profile is impossible in the long term. You will always be tempted at some point to deviate from the initial trading strategy.
Money management: Risk management is very personal, it depends on psychological factors (risk aversion, resistance to stress, emotions) but also and above all on the experience gained in trading (placing stops, moving stops, taking anticipated profits…). All this cannot be learned, we only acquire it over time by dint of
Confidence:
Here is another element that cannot be acquired. I am not talking about self-confidence but about confidence in your trading strategy. If you have created it and it gives good results over the long term, the phases of losses (which are part of trading) will not scare you. On the other hand, a trader who applies the strategy of another will begin to doubt at each phase of loss. He will end up doubting the signals given to him.
Processed product: A strategy that works on a specific asset does not necessarily work on all the other assets.
All of these elements mean that you cannot win by applying another trader’s strategy. You have to create your own strategy. That doesn’t mean that you can’t take inspiration from other traders’ trading strategies. But you must add elements that are unique to you. A good trading strategy is personal.
You may also like
You may be interested
5 Do’s to Make Your Startup Business Profitable in Dubai
Startup Business in Dubai has always been promoted. Dubai is...
3 Easy Ways to Reduce Your Business Expenses Professionally
For every business, there are a lot of expenses that...
How to find the best debt consolidation company? A Basic guide
If you are stuck with different creditors and you are...
Archives
- February 2025
- October 2024
- September 2024
- July 2024
- March 2024
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- May 2020
- April 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- November 2018
- September 2018
- August 2018
- July 2018
- June 2018
Calendar
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | |
7 | 8 | 9 | 10 | 11 | 12 | 13 |
14 | 15 | 16 | 17 | 18 | 19 | 20 |
21 | 22 | 23 | 24 | 25 | 26 | 27 |
28 | 29 | 30 |
Leave a Reply