How to Develop Trading Strategy?

1. How to Develop Trading Strategy? Is your current trading strategy don’t seem to be working? Well, it is the right time to start finding a new one. And it is what most of the traders are doing when they find that the profitable results are not there. Consider starting with a trading plan. What Your Trading Plan Should Have? You need to understand that your trading strategy must fit the trading plan like the hand fits the glove. Many don't understand the difference between a trading plan and the trading strategy. For them, your trading plan is very much similar to a business plan, and the trading strategy is a small but crucial part of the trading plan. It can be broken down into two parts: Ideology In this plan you should be very specific about your thinking toward the market and how are you going to achieve these goals. In this part, you get the direction and guidance that will help you sail through the tough time. Trading Strategy Your trading strategy should be very detailed. You must think about all the outcomes and should be well accounted for if you want to taste success. Many traders once start trading often forgets that they have plans. But you always remember luck favors those who have done all the hard

2. work. So it is better to take some-time out and develop the strategies and make the trades. And How Do You Make Winning Trading Strategies? It is very much possible that your trading plan may contain many strategies, but you must start with fine tuning one strategy before moving on to the other. You may consider setting up the risk limits as soon as you open the trading account. You should start with defining the max daily loss and how much are you willing to lose before you stop trading. The next step is defining the maximum loss per trade and how much are you comfortable risking each trade. Then you must choose which market you wanted to trade. The next thing that you might have to decide is a time period during which you wanted to trade. Choose a Methodology The methodology is a small piece of the trading system, and the success results from proper execution. While trading it is always better to be simple. So pick an indicator (bar chart)and use it to trade form your trading software.