Profitable Forex Trading Strategy

In this section, we shall look at what it takes to create a profitable forex trading strategy. The trading strategy is the be all and end all of forex trading. When you find a method that works, everything changes, but to get to that stage is hard work. We shall explore here many varied aspects of finding a method and although some parts may appear irrelevant, they are vital to reach the final outcome. Creating a profitable trading strategy takes time and patience.

  1. The Scientific Forex Trading Method
    “Forex currency trading is a science and those who are going to prosper will need to treat it as such. In this section, we shall investigate the underlying principles of a scientific forex strategy using the scientific method. We shall also dip into its relationship with chaos theory. The scientific method is based upon two principles…”more
  2. Prescriptive/Descriptive
    “A scientific approach to studying the forex charts can lead to two types of forex trading strategy: prescriptive and descriptive…” more
  3. Real Forex Trading pt.1
    “Forex trading is not investing, it is speculation. Investing is a reputable strategy to earn money, and it also is an important asset to the economy as a whole. Instigated by his Ph.D thesis in the sixties, Eugene Fama, developed a concept known as the efficient market hypothesis…” more
  4. Real Forex Trading pt.2
    “We are now in a position where we can begin to construct a profitable forex trading strategy. Where should we start? Let us look at a graph and see what we can learn from it…” more
  5. Real Forex Trading pt.3
    “Realizing that we need to explain what triggers a big movement in the forex graphs, this page will supply some suggestions regarding avenues that need exploring…” more
  6. Real Forex Trading pt.4
    “This graph demonstrates the complications of constructing a forex trading strategy. One should not create rules that do not conform to the graphs. Just because a line exists, does not mean that the price cannot pass through it…” more
  7. Componential Analysis pt.1
    “The scientific forex trading strategy states that the responsibility of a trader is to explain why a particular movement in a price took place. This explanation cannot be provided by a simple formula, rather one has to strain out many, many factors that led to the final outcome…” more
  8. Componential Analysis pt.2
    “Imagine you do research and discover that your forex strategy means that if you trade a currency 10 pips after it has passed through its breakout line, it will earn you 30 pips guaranteed. What do you do?…” more
  9. Game Theory
    “forex trading is a game. A game is a form of competitive activity and economists have spent their time studying this subject far too much! So much so that studying games is now a whole area of study in itself called game theory…” more