Forex Trading System: Your Own Unique Trading System

Forex Trading System: Your Own Unique Trading System

by Harold Hsu

Every successful Forex trader follows a trading system that fits his or her unique personality. Some use a long-term approach, some use a mechanical approach and some even use an intuitive approach. I've also known scalpers, arbitragers and momentum traders who have made a good living out of their trading systems.

As you probably realize by now, there is no one "ultimate" trading methodology. Actually, the type of trading system doesn't matter at all. But what these successful traders have in common is that they absolutely love their trading system. They're comfortable with it, they understand how it works, and most importantly, they like it. These people wouldn't dream of trading any other way.

There are too many traders today trying to chase hottest and latest fad in trading. For example, the hot thing right now is day trading. Day trading involves the opening and closing of (typically multiple) trade positions in a single day. No positions are held overnight. But unknowingly to many traders, day trading my not be suitable for them at all. To be a successful day trader, you'll need to love everyday short term market price fluctuations. You'll need to be able to handle the pressure of losing hundreds (or perhaps even thousands) of dollars in the short time span of a few hours or even minutes.

Yes, there are many traders who make a very good living out of day trading, but there are even more traders who lose the shirts off their backs after only a few months of day trading.

You'll just have to decide for yourself which trading approach you feel most comfortable with. Remember that there's no right or wrong way to trade: it all depends on your preferences.