What is The Best Trading Strategy To Earn A Living?
Well the immediate response to this question is that the best trading strategy is the one that fits you best depending on your circumstances and personality. We are getting lots of time this type of question here at TopTradingPlatforms.co.uk and we all wish we could give our readers a straight answer…like a receipt for cooking a pasta. As you will probably know this is a very difficult question and this is why we need to dedicate some time to give you an in-depth answer.
The reason why we cannot simply give you a straight answer is that online trading is very competitive and there are many markets and many people involved: each market is different and each person is different and this is why, although it is certainly possible to find the right answer, it does require further analysis.
We truly believe that the best online trading strategy to earn a living or a long term profit is the one that best fits your style and circumstances. As it is quite complicated to explain we are going to answer this main question by asking and answering many related questions. By the time we have completed our process you will know what to do to find what strategy is most suitable for you.
The reason why we cannot generalise is that we could say the best strategy is a price action strategy and this might be true for me but not right for you as you are unable to trade as many hours as I can due to different circumstances. The best trading strategy has to be custom built for every person and it will be different one to the other. By reading all this article you will know what is the best trading strategy is for you. We strongly suggest that you bookmark this page as you might need to comeback here from time to time as it will be a valuable help in building the strategy that is custom made for you. There will be lots of different trading strategy examples that you can use as a reference to build out a full range of useful strategies that you can test in the future.
Each trader need to test different trading routine before finding eventually the best trading strategy that will use for long time. Jumping immediately into trading without a strategy and objectives will mean you will in the best case scenario lost time and you could actually lose all your capital. So creating a plan that you will use daily will make things easier in the long term. Those are the things you have to ask yourself:
How much time per day can you dedicate to trading?
This will be different from person to person depending on your circumstances. If you have a full time job than you surely will have less time to trade than someone who doesn’t work 9-5. If you are in a situation like that then you will need to find the best long-term strategy you can and than make the trades in the morning before going to work or in the evening when you are back. The good thing about trading online is that you can adapt your strategy based on your personal circumstances so everyone can trade in their own way.
How patient you are?
Another important thing that you should find out is how patient you are. If you are not a patient trader than you are not going to be able to wait for days for entries and you would need to focus on short-term strategies that will give you maybe smaller but tangible results very quickly. If you are a patient trader than you can consider long term strategies as you will be able to hold your nerves in adverse situations as you will have a long term goal.
You can start trading online with a very small capital but it is important that you ask this question to yourself. The reason is that the amount of money you have to start trading will determine which type of strategy will be mostly suited to you. If you start with a small balance of £1,000 than you would need to find the best mt4 trading strategy and the reason is that mt4 is the platform used by forex traders that don’t need large capitals to start trading. It would also be important for you to set stop losses small as if you set your stop losses too large you can burn too much of your bankroll and that will mean you will than not have enough funds to recover potentially adverse situations.