oliviabacker
Age: 2023
Total Posts: 0
Points: 10
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As a trader, what are your trading strategies based on, indicators, price actions, etc.?
freestown7
Age: 2023
1736 days old here
Total Posts: 121
Points: 10
Location:
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The only successful trading strategies are those that no one else knows about. If other people know about the strategy (including patterns in charts), they are already using it. If other people are already using the strategy, then prices already reflect the changes that the strategy is trying to anticipate.
So, if you see a pattern in the chart for an exchange rate vs time that previously correlated with a change in one direction, there's a serious danger that you can spend a lot exchanging money to position yourself, then not see the expected change. If you've also borrowed money to leverage your position, you could lose both exchange fees and interest. And there's probably a 50% chance that the exchange rate could change in the opposite direction from what you expect, perhaps wiping you out.
Unfortunately, not all, "strategies that no one else knows about," will be, "successful strategies."