The best Forex trading system in the World
The best Forex trading system in the world is the one that’s works for you.
In other words, there’s no no one-size-fits-all method, and that the one that works best will be highly specific to your situation and personality.
The best trading philosophy in the world
Firstly, the best Forex trading system must operate according to a trading philosophy that you understand and accept.
If you think trend trading makes the most sense, then go with a trend trading system. Likewise for all the other trading styles.
That said, one of the biggest mistakes that amateur traders make is to try to trade every setup they see. They try to trade swings, trends, and even trade the news, all at the same time.
The problem with this approach is that beginner traders have not yet understood the philosophy behind each of these trading styles.
By spreading themselves thin, they don’t develop a deep enough appreciation for each trading style to have conviction in applying them.
- So take the time to fully understand the philosophy behind each trading style, and then pick the one that makes the most sense to you.
That’s the first step to finding the best Forex trading system in the world.
The best trading system fit
The next step is to identify a trading system that gels with your personal situation and temperament.
- For example, if you’re busy with a day job then a trading system that requires a lot of screen time will not work for you
Similarly, if you’re highly uncomfortable with keeping trades open for over 24 hours then the best trading system for you is likely to operate on the intraday time frames.
This contrasts with beginner traders who tend to go for trading systems that excite them. There’s often a difference between a system that suits you, and one that gets you excited.
The former is like putting on a pair of old shoes - it’s comfortable and reliable. The latter is like rolling a dice at the casino - a lot of fun, but you’re going to lose money over time.
The last thing to keep in mind is that even among certain types of trading styles you’ll find a variety of different approaches.
For example, there are trend trading systems that operate on the 4 hour chart, as well as trend trading systems that operate on the 15 minute chart. Even if you’re a trend trader, you’re likely to be more comfortable with one of these systems over the other.
Just as how you have very specific likes and dislike as an individual, so will you have very specific comforts and discomforts with various trading systems.
The trick is to be aware of how you’re feeling as you trade with them.
When in doubt, always go with the trading system that makes you feel the most comfortable.
A profitable trading system
Last but certainly not least, the best Forex trading system in the world is one that is profitable, regardless of how much.
Even if you make just $20 a month from a trading system that you are 100% comfortable with, that’s already a lot better than 90% of the people out there who are losing money.
Profitability isn’t everything, but it’s not something you can do without.
I’m mentioning this point last because over the long run, this is actually the least important aspect of finding the best Forex trading system for you.
If you fulfil the previous two points, it’s inevitable for you to meet this third and final criteria.
How to find the best Forex trading system in the world
Unfortunately, the only way to find a trading system that meets all 3 criteria is by trying out as many as you can.
However, this doesn’t mean that you should test them randomly. There’s a better, faster way to do this!
The key is to first pick trading systems that are vastly different in almost every aspect.
For example, you might first want to test a trading system with these characteristics:
- focuses on just one currency pair
- focuses on the very short-term time frame (such as the 5 minute chart)
- requires at least a few hours of screen time each day
Next, test another trading system with the opposite characteristics:
- trades across multiple currency pairs
- focuses on the long-term time frame (such as the daily chart)
- requires just 15 minutes to monitor the market each day
In testing two diametrically opposite approaches you’ll be able to better estimate the approach that best fits you.
Using the same example, if you find that you are much more comfortable trading on the long-term time frame, then you test a variant of that system by tweaking one or more components. You might, for example, try trading on the 4 hour chart instead of the daily chart.
In this way, you quickly narrow down your choices to trading systems that increasingly fit your profile and circumstances.
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