Using Identical Trading Strategy Repeatedly
How many times have you used the same method over and over again? If we ask this question to any individual in the community, the answers will be similar. Traders tend to use one strategy for a long time once it makes a profit. It does not matter whether it was yesterday or a year ago, the fact it was efficient is all it takes to convince them it is the Holy Grail of Forex. In the trading community, this is a big concern because many like to use an old formula repeatedly. In this article, we are going to explain why this is not a good idea.
If you are wondering we are wrong, go through this post till the end. Misconceptions have become traditional norms in currency trading, and that costs investors dearly. When the right information is provided, they are reluctant to accept it at first. However, explaining things repeatedly will change their minds and will probably help them to manage their fund properly. So, go through this article very carefully as it contains critical information which can improve your performance.
Why use a new one if the old one works?
This is a logical question. We don’t want to get into a debate but people need to realize that this sector changes every day. New information is being realized constantly which is affecting the price. Volatilities appear based on the latest data. Prior movement is obsolete and has no effects whatsoever. Think of the world before and after the coronavirus pandemic. A lot has changed since then and many people have changed their professions. Many offline businesses have transitioned to online selling and this constitutes a majority of their revenue. If they were to use an orthodox method, survival would not be possible for many organizations.
Over time a formula loses efficiency. To remain updated with the latest developments, traders need to incorporate new tools and concepts. They are not changing it completely but only including additional measures. In the demo account, try to find out any person who is using the same style from day one. Chances are this will never happen. He understood it was not the right style and changed slowly until perfection is reached. Never stick to a fixed plan. When time and context dictate, bring in alternatives to get the best result. Never be predictable by using old patterns repeatedly.
Revise your trading strategy
To use the same old trading strategy, you should revise the system using a demo account. Find more info about the professional demo trading account by accessing the official website of Saxo. Never try to revise your trading strategy without using the demo account. You will lose a significant portion of your trading capital and this will create lots of stress. There is nothing wrong to use the same old trading strategy especially when you revise it on regular basis.
This saves practicing time but costs money
Many will not want to admit but one of the reasons behind doing this is to avoid the work of developing a method from scratch. Traders do not need to build a new one but only modernize the existing one. The principles will never change. Once the basics have been learned, you do not need to think too much. This is a profession where only practice can reap the rewards. Never expect to become rich by anticipation. Forecasting without basis will not work. It might work a few times but in the long-term, there is no alternative.
The trends are always changing and so should the planning. Never use a replica of an existing method. Bring changes relevant to contemporary times. For example, yesterday was volatile and you had to use various tools to predict the trend. If today seems stable, only use the basics to find out the probable direction. Learn to adapt to modern phenomena so that you can trade with good confidence.
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