Effective In Changing Conditions
Forex traders need a successful strategy made up of components that allows them to be flexible and effective in changing market conditions. Here’s one way to find it.
Trading the financial markets is similar to a great round of golf; the players who use the best techniques and work hard to refine their skills come out on top. Golfers need to be able to play in all conditions, hit shots from different distances, maneuver in any situation, and use all the clubs in their bags. They accomplish this by testing different strategies and swing changes, and getting lots of practice.
The same goes for forex trading. You need a strategy made up of components that allow you to be flexible and remain effective despite constantly changing market conditions. Your approach needs to be tested so you have the confidence to minimize your emotions. In my opinion as a golfer and a trader, the backbone of any successful strategy is learning to use the proper tools of the trade.
I began trading in the currency markets to provide opportunities for when the stock market is consolidating or not providing good-quality trades. The high-odds swing trades in the forex market come in cycles, and therefore, it provides an alternate vehicle for a serious trader. It also gives insight into the stock, futures, and commodities markets.
FIGURE 1: ANATOMY OF A CANDLESTICK BAR. There are two parts in a candlestick bar: the real body and the shadow. Candles without a body are called dojis.