Market Overview

Adapting to the Market, Not the Other Way Around


Adapting to the Market, Not the Other Way Around


For traders that are interested in finding the most effective forex strategies and are looking to outrun their market counterparts, it is very important to understand which types of strategies work in a given market environment.  Since there is no single strategy that will work in all cases, it is important to have an “arsenal” of strategies rather than relying on one technique in all cases.


The fact is, this is an overly simplistic way of looking at the forex market and will not enable you to perform in an optimal way relative to your peers.  “The forex market is arguably the most complicated and dynamic market in the world” said Haris Constantinou, currency analyst at TeleTrade.  “So any trader thinking that one trading method will work in all cases, will inevitably under perform.”  Instead, you should be looking at the market conditions themselves and then look to adapt your strategy to that set of circumstances.


Funamentals and Technicals


Successful traders are the ones that can research, understand, and implement the most effective and time tested strategies that have been employed by traders in the past.  These strategies are diverse enough that, once you have spent some time using these approaches, you will be able to adapt to the market in a wider variety in market situations.


Another important point to remember is that traders should never  look to rely simply on technical or fundamental strategies on their own.  This is one of the biggest mistakes that new traders make -- and once too much attention is focused on one of these areas, these inexperienced traders will find themselves to be unprepared for many very common occurrences that will inevitably develop.   While it might take some more time and effort to learn the main aspects of technical and fundamental trades, these works of effort will ultimately pay off at a later date, as you will be able to successfully “weed out” high probability trades from the ones that are less likely to generate profits.


Putting these ideas together is what will ultimately enable you to separate yourself from the pack and achieve efficient and repeatable results over the long term.  Your main goal should be profitability above all else, and this will eventually come as a result of the extra time and energy you have put into learning about various aspects of the forex market.   The forex is a very interesting forum to test new ideas and learn about new approaches, so if you approach these markets in this way, the world of forex will begin to make much more sense no matter what type of environment is prevailing at the moment.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets


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