Pretty much every other forex/trading website is filled with strategies/systems that promise insane results and overnight riches. The sad part is that most people actually believe what’s written on the internet. As a result, they end up blowing their accounts multiple times by following these systems.
If you go to forex factory forum, you will be amazed to see how many strategies are available. However the truth is that none of them actually work. Some of them will work for a week or few months at best. There will come a time when that strategy will just simply stop working and then, you will be looking for a new one. The main reason why these strategies stop working is that they are just made for specific market conditions. When these conditions disappear, the strategies also stop working.
Just think for a second… If you had a strategy that actually works and can deliver great results year after year, would you still share it on internet? If you think about for another perspective, a working strategy is essentially a money making machine. No one in their right mind will be willing to share it.
If people were just sharing these strategies for free on websites.. it would have been fine to some extent. Well people loose money by using them but still let’s just say “it is fine” for the sake of argument. What’s more sinister is the fact that some people actually start selling systems. They would show you a great equity curve which just keep going up and up. You look at the amazing secret system, great equity curve and promised riches. Next thing you do is steal your dad’s credit card (or your own) and press the buy button. What happens next is pretty obvious and everyone knows that… The strategy doesn’t work the same way at all and actually starts loosing money.
Here’s the things that you should do right now:
- Stop searching for free systems.
- Stop buying systems/strategies.
- Stop buying expensive courses or secret classes.
Here’s what you should do right now:
- Learn how to trade yourself from babypips school.
- Develop your own strategy/system based on positive risk:reward and good risk control.
The first time you start reading from babypips school, you will not be able to remember much by the time you finish reading. Well that’s pretty normal. Just finish up the babypips school and then start trading on demo. After a month or two, go back to babypips school and start reading from the start once again. This time things will start to actually make sense. Invest in yourself by learning instead of finding shortcuts.
The truth about joining mastermind classes or expensive courses is that: “They are just rehashing the free information already available for free”. I have seen lots of these expensive courses and they are not worth the price or time.
Once you have enough knowledge, then comes the part of building your strategy. At this point, you should first consider what time of trader you want to be. If you want to be a daytrader, then you should be building a strategy based on the “minute charts” (15-30-1hr). If you want to be a swing trader, then (1 hr, 4 hr, daily) charts are perfect. Once you have decided on the type of trader you want to be, next step is find the approach that suits you best…
You want to follow the trend or trade the range? You want to trade the harmonic patterns? That’s a choice you have to make for yourself. I personally like “trend following” systems but that’s just me…
Creating a strategy is just the first step. Then comes the part of backtesting. I know you will say, “Umer, I don’t know how to code.. so how I will backtest”. Well, you backtest manually!!! Never even trade a strategy on a demo without backtesting it. The reason is that if that strategy simply doesn’t work, you will be wasting your time. In the next post, I will share how you can easily backtest a strategy manually and all the stuff that comes with it.
Note: I have just touched this subject barely. There is a lot more important stuff that is essential to making a good system. However As this system was just focused on stopping people from buying systems and actually making their system… In the future, I will share more stuff that is essential for making a good system.