Best forex market strategy or theory I should use?

+1

Don't set goals to make money, set goals to preserve money and follow your trading plan. I'm just now adjusting my mindset to follow this principle myself, but it helps. Instead of saying "Profit 1% each day", or "Earn 50 pips per day", say "Never adjust stop losses backward, only forward to break even", or "Never risk more than 1% in any given trade". If you strictly follow your trading strategy and money management principles, you're much more likely not to go broke.

A break-even trade is a winning trade.

Indeed, I never understood why I would have to lose in order to win ....

Determining the "best" strategy to use that is good for everyone all the time? Really tall order.

My suggestion is to:

(1) read your brains out about various strategies others use. There are a large number of them. Certain strategies aren't for everyone, some are just reliable failures, and others require large devotions of time with your eyes on the screen. I would probably start out with a web site like Babypips or DailyFx, paying particular attention to what the so-called pros say (it's a good foundation), and then later throw out anything that they've said that just doesn't work for you or that you determine is just a total load.

Also, learning about what other techniques traders use (e.g., trendlines, S/R, pivot points, Fibs, indicators too numerous to mention, etc.) helps you to more effectively evaluate whether a given trader's or analyst's take on a potential set up is good or just total crap. It's great when a given trader is making a pitch for a trade set up and you're able to look at it and say, "Hey, I never thought of that; it looks like a splendid set up. Thanks for saving me some time by pointing that out. I wasn't really focusing any attention on that pair."

(2) go with the simplest, least complex charting set-up to inform your trading decisions as possible. Simpler is better. A complex set-up frequently muddles your decision-making process and, in many cases, is totally unnecessary for you to find trading set ups that are likely to be profitable.

(3) open a demo account and proceed to demo your brains out. Take the demo seriously, as though it were real money, and you'll learn a lot. Demo different techniques/strategies over lengthy period of time (I would say at least 3 months) to determine what works for you and to practice good risk management, which leads me to ...

(4) learn rules of thumb regarding risk management and practice them. Perhaps the biggest thing that leads to failure is a trader's inability to manage risk properly. It really isn't rocket science (how hard is it to practice no more than 1 x equity per position; no more than 10 x equity total exposure?) ... But so many traders fail to practice it, that's it's no surprise that something like 70% of all forex traders are unprofitable; it's because they blow up their accounts when they make a single, oversized mistake.

(5) figure out what you're most comfortable with in terms of trading style (scalp, position, swing), since what you're comfortable with may affect the techniques you use.

(6) look at the TE's of successful traders, try to figure out what they're doing, and then emulate that if it makes sense for you. Naturally, that's a bit of a slog. I see TE's out there that are already in the 1,000% profit range already at this point in the year, but let me tell you, those kinds of gains are simply not sustainable. They are flash in the pans and will quickly move out of the top 100 in short order. Look for TE's, or MyFxBook, or whatever traders who consistently make reasonably achievable and repeatable gains over several months and attempt to see how they're doing that. Heck, PM them and say, "How the hell are you doing that; I can't figure it out." Naturally, some won't reply, but there are more than a few good folks here who are willing to share their methodologies with you.

(7) allow yourself time to learn, fail, and succeed. I imagine if you had the time, you could probably slog through virtually all there is to know about various methodologies, techniques, and strategies in a fairly short period of time (a few weeks). Using that info in practice, however, just plain ass takes time. People laugh and poke fun at me when I'm diddling around with demoing this or that strategy for four months, but I think that's what it takes, at the very least, to determine whether a particular approach is statistically valid (truth be told, that time frame is probably really too short).

Best to do is learn the business of the Market Maker. This is needed before learning to exploit their moves.

The majority of what is presented is smoke that you will surely get lost in and when found you will have already been robbed.

Check the PM I sent.

Hope it helps.

Green pips!!!

Best strategy: Start small and research, research, research..
There's no easy one, two, three steps to becoming a professional trader..like everyone else, you need to really work hard at it. Set aside a few hrs a day to start off with..

Buy low, Sell high obviously.

Well you can call it a strategy, a philosophy or tactic. Whichever way, it all comes down to three elements.

1. Risk what you are prepared to lose: By extension this can be applied on individual trades. You risk appetite per trade is as important as the amount you put in your trading account.

2. It is not a get rich quick scheme: It is important to understand this, because patience is one of the basic rules of the game.

3. Have a well laid plan: You have to decide your trading times, frequency and reinvestment policy. After all, why trade if you don't plan to pull out some of your profits from your trading account?

The best Forex strategy to get the highest ROI I think would be 1:1 leverage. If there was a system out there that worked, then people would flock over to it until it didn't work anymore. The only way to consistently have a high ROI in Forex is 1:1 leverage over long time periods based on information.

Higher leverage will always decrease ROI. Stops should always be used to mitigate the negative effects of higher leverage. Of course the best solution is no leverage.

Let's say that when you trade it's 1000 pips until your equity is zero. If a trade goes against you 500 pips and then you get out, you would need a 1000 pip gain to break even using the same leverage of the 500 pip trade. In other words, an account that lost 50% of it's money needs a 100% gain to break even again. No wonder why so many retailers go bust. Big money doesn't need leverage so they don't lose money as much.

Hmmm... As for me, experience is a best teacher. When you trade manually you will find your own way after first win and first lose

Yes, 1:1 leverage would be marvelous, but then again it would take out what makes Forex an interesting market. With 1:1 leverage, it would be more or less the same as investing in the stock market. But all the same, this would be a great way of minimizing trading risk.

Totally agreed with that. Forex would be boring with 1:1 leverage. Even the stock market is more volatile. If however you're someone like Soros putting hundreds of millions in Forex then 1:1 leverage would sound exciting.

1:1 leverage doesn't just reduce risk, it should actually increase theoretical ROI. Increasing leverage always increases the risk of gambler's ruin.

Don't try to get rich quick. Too many traders think that this is easy and will turn 10k into 100k in one month. Sorry, this isn't reality. Take time to learn with demo account or very small positions, be patient, good money management, read up on everything forex/economics related that you possibly can on a daily basis.

Search for Forex basics. Go from there. Once you have a great grasp of the basics, you will know how to refine your question a whole lot.

I'm not what you would call consistently profitable. I can however share a few things that got me going in the right direction. I removed all the indicators from my chart and learned to trade price structure. The chart reveals the intention of the market. If one is patient and lets the market come to him success is within reach. The second was a simple strategy I learned for what one could call "trade management". Everyone kept telling me I needed a 2:1 or 3:1 reward risk ratio. The problem is some trades are not going to yeild more then 1:1. Additionally if one waits for 2:1 or 3:1 you risk getting stopped out when you could have had profit. If you close early you won't secure those large winners to cover loses and increase balance. I set multiple profit targets. Upon reaching 1:1 I close half my position and set my stop to break even on the remaining. Then I trail my stop on the remaining portion until stopped out.

I'm not saying that indicators do not work or are bad. But using an indicator without learning to trade structure first is like learning to read the indicators on a car before learning to drive.. First identify structure and then look for comformation from indicators if you whish.

Good advice.

When I started trading I looked through a lot of literature, I talked to experienced traders and finally I found my own way. The main point is - you must not believe EA's at 100%, you need to understand how to read charts, you don't need listen to everybody 90% of traders are losing, don't waste your time on losers Wish you profit

In forex trading, we learn from each other, but our aim should not be just to learn from each other. It is good to keep your own philosophy, but also getting ideas from fellow traders can go a long way to providing you with new insights that you could pursue perhaps to diversify your trading strategies. What I know is that there is no single strategy that will always work all the time and sharing ideas with others gives you an opportunity to come up with Plan b/c/d etc.

well said

most of the profitable traders have struggled for years and finally come up with their own personal strategy that works for them, they are not simply going to tell you about it, it is a secret traders tend to want to keep for them selves, the reason is that if any such strategy would be made public and if enough people was using it, then it would become unprofitable in the end. after all, whats it's all about is to take the other traders money. nobody will give away their butter and bread, you will have to be prepared do your own research. there are a lot of systems that are profitable here on FF, not mentioning any names, if you trade them correctly and have the psychology to master them, you could be profitable, my strategy is personal and and tailored to me, even if it is profitable for me , it might not be for you. you will have to find out how you like to trade and what ticks for you.

Nice explanation, thanx mate for this, I must to copy paste this and send it to my friend who asked me same question.

Cheers!