What is the Best Forex Strategy?
How to Achieve Consistent Profits in Forex
There are 2 critical components to achieve consistent profits in forex. First, you need the best forex strategies. Second, you need to have elite discipline. Both of these components are a requirement to be profitable in forex. When you master forex, you unlock a lifetime of income potential from the comfort of your own home. The financial freedom that you can obtain by mastering forex is priceless. The following content will discuss the attributes or characteristics required of the best forex strategy. After explaining those essential elements, we will also discuss discipline, because elite trading requires elite discipline coupled with the best forex strategies ever.
Best Forex Strategy – Attribute 1:
Understanding The General Market Direction Better
The best forex strategy should help you better understand the general market direction. Understanding the general market direction is one of the most important skills you need to develop as a forex trader. Fundamentally, you need to understand what price is doing. You can’t just slap on random indicators and take reckless trades without understanding where price is headed. Once you understand the general market direction better, then you can start executing the absolute best forex setups that are aligned with the general market direction. This is a prerequisite for optimal forex trading success.
Best Forex Strategy – Attribute 2:
Identification of the Best Setups
The best forex strategy should also allow you to identify the absolute best setups on a daily basis. Quality forex trading requires the execution of quality forex setups. You cannot be scalping on random areas of a chart. You have to know exactly where you are on the forex map. More specifically, you have to understand where price is relative to a particular indicator. It’s also extremely important for you to know about forex levels. The best forex strategy should also teach you the right areas to trade and the right times to trade.
Moreover, identification of the best setups should be easy to learn. There should not be any complicated patterns or complicated indicators. The best forex strategy should be simple and straightforward to make your life as a forex trader as easy as possible. You want to get to the point where you are mechanically executing the best forex setups.
Best Forex Strategy – Attribute 3:
Mainly Price Action Trading
The best forex strategy should also be primarily based on price action trading. Price action trading is trading based solely on price without the use of any indicators. It’s the cleanest form of trading. However, here at Forex Elite, we strongly recommend the use of 1 particular indicator. If you don’t use that particular indicator, you will be at a significant disadvantage. So the best forex strategy should mainly incorporate price action trading with minimal indicators.
The beauty of price action trading is learning how to understand what price is doing simply by looking at the price itself on the chart. You want to visually understand what price is doing and where it’s moving to. Simplicity is the key. You shouldn’t be doing anything fancy. Price action trading with 1 simple indicator makes your chart super simple, super clean, and super powerful.
Best Forex Strategy – Attribute 4:
Good Reward to Risk Ratio
The best forex strategy should also allow you to always execute trades with a minimum reward to risk ratio of 2 to 1. If you lose, you only lose 1 point. However, when you win, you gain 2 or more points depending on your reward to risk ratio. This means that even if you lose half of your trades, you’ll still be a successful forex trader, because your wins will outweigh your losses. Lower risk with a higher reward is smart trading. Never enter into a forex trade unless it offers you a minimum reward to risk ratio of 2 to 1. This is the simple mathematics of forex success.
Best Forex Strategy – Attribute 5:
Set and Forget Strategy
The best forex strategy should also be a set and forget strategy. What does this mean? This means you set your trade and then you forget it until a certain time later, where you would close your trade out. In other words, you should not be monitoring your trades. What’s really great about a true set and forget strategy, is that it eliminates the emotional factor of trading. No monitoring means no stress and no emotion. You set it, and you forget it, until a later time such as the end of your trading session. You should never just sit there stressfully looking at prices spike up and down. A set and forget strategy will help you focus on becoming a better trader and it will also help you make better trading decisions. Instead of being stressed and watching your money go up and down, your focus can be more geared towards making objective trading decisions. Eliminating the emotion of trading will allow you to become a better forex trader.
The Importance of Elite Discipline
Equally as important as having the best forex strategy, is having elite discipline. Elite discipline signifies: 1) always trading with a good reward to risk ratio, 2) sticking to the same strategies forever, 3) objectively trading without emotion, and 4) practicing to acquire experience.
The first element of elite discipline is always trading with a good reward to risk ratio. From the material above, you should already know that a good reward to risk ratio means at least 2 to 1. If you minimize your risk and maximize your reward, your wins will outweigh your losses in the long run.
The second element of elite discipline is sticking to the same strategies forever. Don’t make the same mistake as many traders make. As soon as they lose, they move onto another strategy, and lose again. They repeat this vicious losing cycle, over and over again, until they give up on forex entirely. Don’t place yourself in that trap. Stick to the same strategies forever and don’t ever deviate from them.
A brutal truth about forex is that you will not win every single trade. That is the hard truth. You will have losing trades. You will have days where you lose. That is how the game of forex works. This brings us to our third element of elite discipline, which is objectively trading without emotion. A successful forex trader ultimately knows that there will be losing trades. That trader does not get emotional upon losing, but accepts the loss as a natural part of the forex game. That same successful forex trader also trades the same strategies objectively and consistently, forever.
The fourth and final element to elite discipline is practicing to acquire experience. Another truth that needs to be noted is that forex trading requires a tremendous amount of practice and experience. Even if Forex Elite provides you the forex holy grail, you still need to practice to acquire experience. Forex trading is an art, it’s not a science. You will truly understand that saying, only after you have many years of practice and experience. Elite discipline requires you to take the best forex strategy, practice it diligently, and acquire the experience necessary for forex trading success.
What is the Best Forex Strategy?
In summary, the best forex strategy should: 1) help you better understand the general market direction, 2) allow you to identify the absolute best setups on a daily basis, 3) mainly incorporate price action trading with minimal indicators, 4) offer a minimum reward to risk ratio of 2 to 1 for each trade, and 5) be a set and forget strategy. In our expert opinion, the 3 strategies from our Forex Mastery Course are the absolute best forex strategies in the industry for the reasons above.
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