Breaking Forex strategy: is a miracle possible?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, the Forex market has gained immense popularity. Traders tend to become not only people with higher financial education, but also ordinary schoolchildren. The reason for this situation is quite simple - ubiquitous advertising promises huge returns with minimal investment.

At the same time, many so-called traders do not even think about what Forex strategies are, trading for them seems like a game in a casino. This approach is fundamentally wrong and can lead to the loss of a significant part of the deposit.

A novice trader may have a question about what, in general, is a trading strategy. In short, this concept can be described as a set of rules that, under certain circumstances, help in the process of trading on the stock exchange to make a profit or minimize losses. To become a successful trader, it is important not only to develop or choose the right strategy, but also to strictly follow it.

Most people who are just starting to delve into stock trading are pathologically afraid of the word "loss". The concept of a drawdown of a deposit (a negative result within a trading period)simply does not exist for them. Fraudsters take advantage of this. They offer for a small fee to purchase materials that will open the trader to break-even Forex strategies.

A trading technique that brings profit to one trader can easily drive another into a big loss. Therefore, the question of whether there can be a break-even Forex strategy is ambiguous.

There are many reasons for this.

Firstly, different levels of psychological readiness can affect. A stock trader may be greedy for profits or fear losses too much. Sharp fluctuations in quotes can put someone into a stupor, and someone can force them to open rash positions.

Secondly, trading times can vary significantly. Forex is a round-the-clock exchange, trading sessions in different countries take place at different times. Therefore, during the day, the intensity of price movement can vary significantly.

However, if you try, you can find such a trading option, which can be called a "breakeven strategy". Forex allows you to make a profit without even delving into the basics of market analysis.

An example of such a trading option is opening deals on a grid. In this case, we initially enter the market at any point on the minimum lot. For example, we prefer bullish strategies and therefore trade buys. In the event that the price went up (that is, we begin to make a profit), we sit andrejoice. In this case, if possible, it is desirable to set and subsequently move the stop-loss signal in the positive area. It is important (if it works and the deal closes) to start trading from the beginning, that is, re-open the deal at the minimum lot.

In the event that the market goes against us, after a predetermined number of points, we will again act in the same way, but with an increased lot (by one or two times). So we continue until the moment when the market turns in the right direction, and the result of transactions becomes positive. In this case, we close the deals and start trading from the beginning.

Grid trading can be called a "break even Forex strategy" with a stretch. Significant market movement in the opposite direction to our expectations can lead to a significant drawdown, and sometimes even a loss of the deposit. This can be avoided if the minimum lot is correctly calculated in accordance with the size of the deposit. In addition, you can try to combine trading on two grids on one account - based on a "bearish" and "bullish" trend.

There are a lot of other trading principles that can be called "breakeven Forex strategy". But do not forget that success awaits only those traders who are able to constantly develop and can independently bring their trading strategy into line with the current state of the market.