Using the right strategy, at the right broker, has the potential to make you a ton of money. It’s important that these two things be used together, and that the strategy feeds off of what the broker allows. For example, some brokers will allow you to end a trade early at a partial profit (or a partial loss, depending on if you are in the money or not). If you are able to take advantage of this on certain trades, you can cut your losses considerably. When you use this method of trading correctly, you will find that your profit rate will go up a tiny bit, which, over the course of time, adds up to a lot of money.
There’s no easy way to find a strategy that works for you. You need to take a number of things into consideration, but the big two are how much money you want to risk, and what your comfort levels are. If you risk too much with a small bankroll, you will find yourself going broke quickly. If you trade outside of your comfort zone, you will have a lot of stress and end up making horrible decisions as a result. Avoid both scenarios.
Instead, try a few strategies to get a feel for what works best for you. Do this in zero or low stress settings, such as in a demo trading account where no money is actually risked or with much lower stakes than you typically would ever trade. This will allow you to get a feel for what your strategy looks like in real time and will give you a better idea of whether or not it truly will benefit you or not.
Over the course of time, your trading strategies should evolve. This is a good thing. No one is perfect, whether you are just starting out or you’re a pro using cutting edge technology and trading services. You will never be perfect at trading, and that means there is always room for you to keep getting better. Keep up with the latest trends, and keep yourself open to ideas from other traders. Be in contact with others through trading chat rooms and forums and test out new ideas yourself in demo trading accounts when you are curious about applying a new technique. There are also methods of back testing strategies that can help to quickly reveal whether or not they have potential or not. Even if you choose to not use a new method, you will learn something from the testing process and this might illuminate a new strategy that you would never have found otherwise.
Just putting in the time trading and researching trades will make you a better trader. It will allow you to formulate better strategies and will help you think differently about your approach. There’s no way to replace experience. Hopefully you will get your practice early on at lower stakes so that you aren’t playing a lot of catch up later on in your trading career. Even if you feel comfortable, you need to start out with small amounts of money. When you begin, you simply don’t have the experience to know whether or not a strategy is going to work for you. Start small and work your way upward in your risk levels. This keeps you protected now so that you can stay in the game and be even more profitable later on in your trading career.
Just remember: your end goal is to make money. A solid strategy will allow you to make more money than random chance ever will.