What is a Forex Strategy?

Forex traders start off by making trades based on minimal knowledge, and a close watch of the market without planning ahead. It is possible to trade this way and sometimes even make profits. But if trading is to be taken seriously it takes a lot more than just that.

Anybody who wishes to make big cash with Forex trading needs to delve deeper and learn more. The best way of planning and organizing trades is through strategies. Just like anything else in life, through experience trial and error people learn to find the best way to get the best possible outcome. The same applies to Forex.

Some strategies have existed for a long time, and traders have but to learn how to use them and when to apply them, sometimes traders use a combination of strategies which they believe will increase their chances of making money. And lastly they are able to develop their own strategies once they are knowledgeable enough to.
To create a strategy it takes skills, experience and usually the help of tools like technical and fundamental analyses which help make more accurate decisions. Strategies are made up of multiple signals which trigger buy or sell decisions.

Some strategies are manual, as in a specific set of actions is planned and then applied by traders, but some strategies are automated and can either be used by trading robots, or pre-set by the trader who keeps monitoring them, and has the ability to intervene at any point. Usually traders will put together their own strategy into the EA and allow it to make the trade.

Strategies can either be created or learnt as mentioned before, but they can also be purchased online from Forex services or even other traders.