How to identify a winning strategy is the most elusive answer for the 95% of traders that are not succeeding in Forex. The reason for it is that most traders lack the discipline to find a trading strategy that’s proven to work and sticking to it. Every strategy will have some short periods where they lose money, however, the periods where they make money are longer and more frequent.
The problem is that most beginners think that they are going to start making money quick and abandon winning strategies after a few losing trades. By constantly changing strategies trying to find the Holy Grail of strategies, these traders can’t create consistency and, furthermore, can’t fully learn how a winning strategy works because they are too fast to abandon it.
As a trader, you should follow these four rules to implement your winning strategy and achieve success:
1. The KISS rule. The most successful strategies and systems are the easiest to learn and master. By Keeping It Simple S… , the more likely that you’ll be able to follow the rules of your strategy, implement them, be successful, and, more importantly, you will stick with it.
There are plenty of very complicated strategies in the market and, even for the most experienced trader, they are very hard to implement because of their complexity. Stay away from complicated strategies and automated systems. Learn to stick to strategies and systems that are easy to use and implement and you will see your trading improve tremendously.