Trading is like a game where every player can’t succeed and only a few who play with a fantastic strategy can taste success. Strategies are what help your long-term survival in the field. So, build your perfect trading strategy by considering and implementing the following suggestions.
Technical analysis: The most foremost step in building a trading strategy is to learn to analyse the market technically. Technical analysis includes research about patterns and market prices that are the prime factors to deal with trades.
Trend line analysis: The market trend keeps on changing within days to months. It helps to determine the direction of a market, uptrend or downtrend. So, before taking any decision, it is necessary to identify the trends and then get on board accordingly.
Fundamental analysis: Fundamental analysis is the best way to decipher the country’s future situation and analyse the economic, political, and social effects on the market.
Risk management: Learning how to manage risks in your trade would lead to your success in the field. Taking risks and dealing with them is also an essential part of a trading strategy.
Money investment per trade: Make it a rule not to invest more than 2% of your account balance in a single trade. So, if some loss comes your way, it will not be a difficult task for you to stand up again and cover your loss within a short time and make high margin profits.
Source: Tax Guru