By: Charley Warady
There are as many Forex trading techniques as there are Forex traders. That's really the bottom line. The goal of every person trading in the Forex market should eventually develop his own Forex trading techniques. However, what needs to be emphasized is that it should be exactly that; a goal. Not a beginning.
The problem many novice Forex traders encounter when first starting out is that they want to establish their own techniques. They figure they know themselves, and they should know best the methods in which they desire to trade. Usually, these are very expensive lessons to learn. The seasoned veterans are the ones that have their own Forex trading techniques, and they have them because they've been around long enough to be considered seasoned veterans. Plain and simple.
In the Beginning
There is no reason to reinvent the wheel. There is available at the click of a mouse, a wealth of information on Forex trading techniques. The smart trader takes advantage of this availability and tries out different methods. If you're able to utilize a demo account, by all means, that's what it's there for. Try different techniques, but use it as if it was your own real money. That's the only way you're going to be able to tell if it's the right method for you.
Get opinions on forums or read different reviews. Whether it's a Forex trading signal service or a technical charting system, especially in the beginning, you don't want to put all your eggs in one basket. If something doesn't work for you, there's no need to dwell on it. Try something else. It might not necessarily be the Forex trading technique that is the problem, but your level of comfortability with it. It doesn't matter. If it's not working, it's not working. Move on to something you're comfortable with trading.
There is no right or wrong. If you're making money doing it, there isn't anyone who is going to tell you you're doing it wrong. And on the same note, if you're consistently losing money using a certain technique, there's no one that can tell you it's good.
Develop Your Own
After great lengths and a substantial amount of experience, you're going to find that you will develop your own unique Forex trading techniques. It's not going to come out of a deliberate action or late night planning. It will develop over time by use of several techniques and tweaking each technique to suit your needs.
One of the most important things is to stay educated. There are new Forex trading techniques coming out all the time and they all deserve a certain amount of investigation. Again, if your broker offers an unlimited time demo account, that is the place you want to try something new out. If not, you might consider opening a mini-account through your broker specifically for this purpose. Don't dive into anything head first. You'll hit your head and it hurts.
The important thing about Forex trading techniques is to have one. It's the foundation of your career and a necessity for success.