Chapter 7: Build Your Strategy – Find What Fits You

Jun 16
2 min read

There’s no “one-size-fits-all” in Forex — only what truly fits you.

What Is a Trading Strategy?

A trading strategy is not a magic formula. It’s simply a structured plan that helps you decide:

When to enter a trade
When to exit (win or lose)
How much to risk
Which setups you’ll take — and which ones you’ll walk away from

It’s your rulebook. Without it, you’re guessing.

Start by Asking Yourself:

Are you a morning person or a night owl?
Can you sit and watch charts or prefer set-and-forget?
Are you more calm and patient or fast and reactive?

Your strategy must match your lifestyle and personality. This is how you stay consistent and avoid emotional chaos.

Common Strategy Styles (Choose What Resonates):

1. Scalping (Fast & Frequent)

Timeframes: 1M, 5M
Hold time: Minutes
Pros: Quick profits
Cons: Mentally intense, needs fast reaction
Best for: Focused, full-time traders

2. Day Trading

Timeframes: 15M – 1H
Hold time: Hours, no overnight trades
Pros: Done by end of day, avoids gaps
Cons: Requires time & focus
Best for: Traders with 1–4 hours daily

3. Swing Trading

Timeframes: 4H – Daily
Hold time: Days to a week
Pros: Less screen time, fits busy lifestyle
Cons: Requires patience and wider stops
Best for: Part-time traders, 9–5 workers

4. Position Trading

Timeframes: Daily – Weekly
Hold time: Weeks to months
Pros: Big-picture focus, fewer decisions
Cons: Needs strong capital & discipline
Best for: Long-term thinkers

Build Strategy in Layers:

1. Pick Your Style

(Scalper, Swing, Day, or Position)

2. Choose Your Tools

Price action?
Indicators like RSI, Moving Average?
Fibonacci, Support/Resistance?

Start simple. Add only what you understand.

3. Define Entry Rules

What conditions must happen before you buy/sell? Example: “Only trade when price breaks support with high volume.”

4. Define Exit Rules

Set:

Stop Loss (SL) – where you’ll cut the loss
Take Profit (TP) – where you’ll collect profit
Or trailing stop – to ride winners longer

5. Set Risk Management

Use the 1% rule (Chapter 6). Never skip this.

Example: Simple Swing Strategy

Setup: Break & Retest of Support/Resistance

Timeframe: H4
Entry: Price breaks support, comes back to retest
Confirmation: Bearish engulfing candle
SL: 30 pips above entry
TP: 2× SL (Risk-Reward = 1:2)

Rinse, repeat. Only touch trades that match your plan.

Mistakes New Traders Make:

Copying someone else's strategy without adapting
Jumping between strategies after a few losses
Using 5 indicators with no clear reason
Over-optimizing backtests but failing in real market

“A good strategy suits YOU, not someone else on YouTube.”

We won’t sell you a dream. But we’ll help you build a plan. Your strategy doesn’t have to be complicated. It has to be yours, clear, and consistent.

“Your strategy is your compass. Without it, you’ll get lost. With it, you’ll go far.”