How to manage our trading strategy?
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Thread: How to manage our trading strategy?

  1. #1
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    How to manage our trading strategy?

    Today I want to discuss a very good topic with you we all know that every trader have his own trading strategy in forex, many trader's like to follow other trader also but can you tell me how we will able to know that which trading strategy is best?

    I think demo trading account is a very good place to test our trading strategy but there is one more thing which we can add in our trading we can make a set of trade's by dividing our whole capital with proper money management and risk management for example if we have a $1000 capital for trading then we can divide $1000 in 30 trades means we should have a very good margin to open 30 position in the market after calculating our risk. Like this way we will surely earn money with our strategy. Because a good strategy will never give you loss in all your trading strategy

    what do you think about it?

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    Registered user Hukam's Avatar
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    Basically our trading strategy need a strong money management and risk management your point is very good dear we can't accept any big loss only for one single. That's a very good point that many trader's just use a big lot size with the aim of very high profit but this type of analysis can make them poor in their life so we have to make a good set of our trades thanks for this example

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    I believe that trading strategies will not stand alone, traders should be there with good management to make it work effectively, this is the sole reason why traders should be at the alert all the time they do trading. Calculation of risk you take per trade and how many times your equity could take this risk is the main element t know this management.

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    Rookie rinaji's Avatar
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    Very good topic, yes, we have to divide our capital into several transactions in accordance with the risk that we can take in each trading position. And also we have to adjust to the win ratio of our strategy. It can be tested in a demo account, for example, we take a sample of 100 times trades, the result is 0 win trades, and 30 loss trades, then we should not divide the capital into 30 trading position, because maybe there is a possibility that we get a loss in a row in 30 trading times.

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    If you lose, be patient. If you win, stay humble

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    Your trading strategy will naturally suggest the management that will fit it. That is why a good trading strategy should be able to tell the trader the right plans to plan the stop loss, the take profits and suggest the means of good plans to get it standardized. In this wile, it is of good important to have your account with lower risk.

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    You have asked two questions, one is about trading plan and other about trading strategy, trading strategy is a different topic and you can get them in strategy section of this forum, and rest about calculation then I want to tell you that whenever you are calculating your trades on the base of your capital then never calculate your trades on whole capital, you should calculate with 50% of your capital, because you can also see negative balance, the spread, stop loss etc. So, the calculation will differ in real trading.

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    Fantastic dear this type of information will help us a lot to learn about this business you are saying right that most of all trader's trade very high risk at once because they want to make bigger amount of money but if we will not divide our capital in a lot of transactions or trades then it will be much tough to make money in this business

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    Yeah rina ji that's a very good point we all know very well that if we have a good balanced capital for our 30 trade's and have a very good trading strategy then I don't think that we will loose our 30 trades in a row you should just have a good risk and reward ratio of your trading like this way you will never loose more and will able to make a very good consistent profit in this market

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    Registered user Hukam's Avatar
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    You are saying right we can't loose all our trade's in forex a trader should make a very good trading strategy first and if we will divide our whole trading capital like this way then I am sure that in average nobody can stop us to make money in forex I am using this type of system already which giving consistent earning every month in this business

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  10. #10
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    actually all the strategies will not work properly if we do not have a good control over ur way in the trading money management . money management which give us the strong of thought to be good in the trading processes . unfortunately . although many of us know the very importance of the money management , we do not apply all its principles while trading

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