Best Forex Strategy
For Consistent Profits
How To Achieve Consistent Profits In Forex
There are three critical components to achieve consistent profits in forex. First, you need the absolute best forex strategy. Second, you need experience. Third, you need the right mindset. All three of these components are required in order for you to become 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 these essential elements, we will also discuss experience and the right mindset, because elite trading requires these items as well.
Understanding The Daily Market Direction Better
The best forex strategy should help you better understand the daily market direction. Understanding the daily market direction is the single most important skill you need to develop as a forex trader. The major trades of the day begin with prices reacting at major Price Levels. That’s why it’s imperative that you become extremely familiar with major Price Levels and how to properly trade them. You can’t just slap on random indicators and take reckless trades without any consideration of Price Levels. That’s just bad trading. The key to truly understanding the daily market direction better is the concept of Price Levels. This is a prerequisite for optimal forex trading success.
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 can’t 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 prices are, relative to major Price Levels. If you take trades at irrelevant prices, then don’t be surprised if you keep losing. It’s extremely important for you to take trades only at major Price Levels.
Moreover, good setups should be easy to execute. There shouldn’t 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 and objectively executing the best forex setups.
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. The most important price action pattern that you need to master is the Reversal Pattern. There is no better and safer way to enter into trades other than by identifying multiple Reversal Patterns at major Price Levels. However, we don’t want to discourage you from using indicators. If you really like to use a particular indicator, by all means use it. However, you should only use an indicator as an additional confluence to price action trading.
Good Reward To Risk Ratio
The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio. Ideally you want to execute trades with a higher reward to risk ratio such as 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 reward to risk ratio greater than 1 to 1. This is the simple mathematics of forex success.
Set And Forget Strategy
The best forex strategy should also be a set and forget strategy. 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 important 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 out 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.
Experience And Mindset
Knowing the best forex strategy is not enough. You also need experience and the right mindset to be a successful trader. Forex trading is not easy. It requires a tremendous amount of practice and experience. In addition to experience, you also need the right mindset, particularly when you lose. A trader with the right mindset understands that he or she will have plenty of losing trades regardless of experience. Sometimes the market will simply go against your trades, no matter how good you are. That’s the unavoidable risk of trading. A trader with the right mindset emotionally deals with losses well and understands that losing is a natural part of the forex game.
What Is The Best Forex Strategy?
In summary, the best forex strategy should: 1) help you better understand the daily market direction, 2) allow you to identify the absolute best setups on a daily basis, 3) mainly incorporate price action trading, 4) allow you to always execute trades above a 1 to 1 reward to risk ratio, and 5) be a set and forget strategy. In our expert opinion, the absolute best forex strategy for consistent profits is our Forex Price Levels Strategy. It’s the ultimate secret to forex and it satisfies all the attributes as outlined above.