Planning a successful forex strategy is no easy feat. By their very nature, the currency markets are volatile and hard to predict, and this means that only the most carefully assembled methodologies have any hope of delivering a profit.
The strongest of these action plans are based on three fundamental foundations: their currency pairs, brokers, and trading platforms. To weave a web robust enough to withstand the vagaries of the markets, each strand must be constructed with care, and that’s why we’ve created this handy little guide to help you…
Foundation #1: Your Currency Pairs
The first step for any forex trader should be to settle upon some suitable currency pairs. The right cocktail of ingredients will vary from person to person, with no hard and fast rules for success. Essentially, you need to consider these key factors: your risk threshold, experience, and the amount of time you’ll be able to spend on researching your markets and the factors that will influence them. As a rule, generic pairings will be far easier to study than their more exotic counterparts, although more unusual combinations often offer the greatest potential for profits (alongside higher risks). Be sure to carry out as much research as you can to find the perfect pairings for you.
Foundation #2: Your Broker
The next step is to find the right forex broker. Not every firm will offer your currency combinations, and this should help you to narrow down your search to a degree. Irrespective of this, you’ll find that you still have a wealth of options available to you. One of your most important considerations should be the type of broker that will be best suited to your needs: execution-only, advisory, or discretionary. They offer very different services, with the amount of support, education, and advice they’ll be able to provide varying greatly depending upon the category they fall into. Choose the right one for you, and you’ll have a steadying hand to guide you through even the roughest waters.
Foundation #3: Your Trading Platform
Your final consideration should be your trading platform. Most brokers will offer a variety of options and packages for you to choose from, and it’s important to find one that’s perfectly tailored to you. This software will act as your conduit to the markets, and it will be the primary source of the information and figures that you’ll base your trades on. Not only does it need to provide you with all of the tools and data that you require, but you must also be able to use it quickly and efficiently in order to carry out your movements. The best way to find the right fit