What makes a winning currency trading strategy - article from selfgrowth.com

The most important element in every aspect of business or investment is to have a winning strategy. This applies to Forex trading. Beside money management and margin calculation, the main part of success comes from having a winning strategy.

What is winning

Winning is not about how much you earn or how fast you earn. Not only able winning how much verse losses how much and also not only about how fast you can get back your investment or return of your investment. Winning is all of that and above all, is a set of rules that you can apply and consistent obtain that winning results you wanted. The key word in all of these win, low, ROI, etc is consistency.


You can win 10 times your invested capital or 20 times multiple your trading account initial deposit. But without consistency, all this will disappear very fast. You can win 10 consecutive trades with thousand of pits, but just 1 lost may wipe out all your earnings. You can earn back your capital plus interested within 1 month but may loss all within a day. The factor that contributes most importantly is consistency winning.

Continuous Profit

If you can achieve profit at 20% every month consistently, within 4 years with an initial capital of 1K, you will hit 1 million dollar. I repeat, its 1 million dollars within 4 years at 20% ROI. This is unbeliever but achievable if there is consistency. But in order to achieve consistency, there is a few factor to consider firsts.

Constant Factor

If you have a winning strategy that makes you 100 pips for every trade over 50 trades including losses and carry trade, you would make 5 thousand dollars for a mini-contract (10k) lot. This portion is the constant factor. Many trader are looking for this but never able to find such a perfect system as currency has its own character and will changes according to demand and supply.

Variable Factor

The variable factor in this case is capital involved and the trading lot size. With more capital and more lots number, your gain will multiple tremendous. This variable factor can also include time and leverage. With more time, you gain more and by leveraging on many different broker and trading accounts, you earn even more.

The missing puzzle

If you think carefully, the above variable multiple by constant factor, will give you a winning consistent results. But you are missing 1 important pieces of the puzzle. That is changes. Fundament changes in the nature of all demand and supply. This is affected by news, greed and demand changes. This is the factor which cannot be control, neither is copied but can be predicted rather inaccurately if you find a strong forces to more the currency price.

Constant * variable * changes = consistency winning

This may look to be a winning consistency but due to changes which is widely unpredictable, many trader is focus on find the black box in forex trading. The box which switches the changes in favourable to your winning strategy and don’t trade when not in your favour.

Most important is to maintain a high constant winning rate, with moderate growing capital and limit your risk of losses to changes.

source http://www.selfgrowth.com/articles/what-makes-a-winning-currency-trading-strategy

Getting Started in Currency Trading is both an introduction and reference tool for beginning and intermediate foreign exchange (Forex) traders. This information-packed resource opens with a description of the Forex market and a section of clearly defined Forex terms with examples. You'll learn how to open your own trading account by following step-by-step instructions and numerous screen shots that show you what expect inside a dealer's trading platform. You'll walk through the physical process of placing and liquidating currency orders. Later chapters introduce various trading strategies and tactics in detail, along with some fundamental and technical analysis that will help you win in the exploding foreign exchange trading market.

Editorial Reviews

From the Back Cover

An accessible introduction to the burgeoning foreign exchange trading market


The Foreign Exchange (FOREX) market is the largest financial market in the world, with a volume of over $1.5 trillion a day—more than three times the total amount of the stocks and futures markets combined. Up until 1995, FOREX trading was only available to banks and large multinational corporations, but today, thanks to the proliferation of the computer and a new era of Internet-based communication technologies, this highly profitable market is open to everyone. This huge international market offers unmatched potential for profitable trading in any market condition or any stage of the business cycle. All you need is a computer, a high-speed Internet connection, and the information contained within this book.
Getting Started in Currency Trading is both an introduction and reference guide for beginning and intermediate FOREX traders. This information-packed resource opens with a clear description of the FOREX market and a section of FOREX terms clearly defined with examples. After this brief overview, Getting Started in Currency Trading moves on to discuss:
  • The mechanics of FOREX trading—order types as well as order execution and confirmation
  • How fundamental and technical analysis can help you create successful trading strategies
  • How to find a reliable FOREX broker or open an online trading account
  • The psychology of trading the FOREX market
  • Advance trading topics, such as rollovers, hedging, and arbitrage
Filled with in-depth insight, practical advice, and numerous screen shots that illustrate what to expect inside a dealer's trading platform, Getting Started in Currency Trading will guide you through the complexities of FOREX trading and put you on the road to success.
Michael duane Archer has been an active commodity futures and FOREX trader for over thirty years. Mike has also worked in various registered advisory capacities, notably as a CTA (Commodity Trading Advisor) and as an Investment Advisor. He is currently CEO of CommTools, Inc., a corporation focusing on nonlinear solutions to trend forecasting, with a special emphasis on cellular automata models.

About the Author

Michael Duane Archer (Golden, CO) has been an active commodity futures and Forex trader for over thirty years. He has also worked in various advisory capacities, notably as a Commodity Trading Advisor and SEC registered Investment Advisor. He is currently CEO of CommTools, Inc., a think-tank focusing on cellular automata and complexity theory market forecasting solutions.
Jim L. Bickford is a twenty-seven-year software engineering veteran, technical analyst, and a very active FOREX day trader with an academic background in applied mathematics and statistics. He has numerous books to his credit and recently published Chart Plotting Algorithms for Technical Analysts.

Getting Started in Currency Trading: Winning in Today's Hottest Marketplace Click here to read amazon 30+ customer reviews

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