Forex Trading Strategies – Is One Profitable Strategy Enough?
Click on the following link for free forex tips and strategies, including the exact 4 hour trading strategy that James Woolley uses himself to trade the markets:
It’s important to point out first of all that coming up with a winning forex strategy is not easy at all. However the minority of traders who do manage to come with a profitable trading method will often stick to this strategy as long as it continues to make money, which can be a problem in itself.
The reality is that a lot of strategies will generate profits in the short-term, but in the long-term they will often struggle to consistently make money. This is because market conditions change quite a lot during the course of the year, and some strategies simply cannot adapt to these changing conditions.
For instance some trading methods rely heavily on markets that are trending strongly upwards or downwards. So therefore if the major currency pairs suddenly find themselves trading in a narrow trading range, the system will often start losing money. This is particularly true if there are a lot of false breakouts.
So that’s one major reason why you need to try and create additional strategies. Another main reason is because there are times when your existing system may not create any decent trading opportunities at all. This means that unless you have some additional trading methods you can use, you are going to find yourself staring at your computer screen bored out of your mind.
This is something I experience myself because my main trading method (which uses the 4 hour and daily charts) doesn’t generate trading opportunities every single day. In fact sometimes it can go several days without generating any decent set-ups.
As a result of this I started creating additional strategies that I could use during these quiet periods. More specifically I looked for strategies I could use to trade the short-term charts such as the 5 minute and 15 minute charts.
Thankfully I now have several different strategies available to me, and they have proved to be invaluable during the last couple of years. I don’t necessarily use them that often (because I often trade stocks and commodities during the day as well) but when I do they often produce some decent returns.
So the point I want to get across is that you shouldn’t necessarily rely on a single trading method when trading the forex markets, even if it does appear to be profitable. It’s always nice to have a few additional trading systems you can fall back on, particularly if you plan on trading a number of different time frames.
Most of the services reviewed by this website are available or may be accessed from Australia (see 