Strategy vs no strategy
I have seen that "no-strategy" systems r gaining popularity. For example u may have noticed many systems which say open a position with specific pips above or below current price. Now there is no plan (except to calculate pips above or below current price) in this strategy and the result is based on luck. There r many similar systems where current market situation is ignored. No indicators, no fundamentls or technicals and no PA is considered.
I do not know how successful r these systems because I have never tested them. Have u tested them ever? What is ur opinion on these kind of systems.
Ultimate target is profitability. So it doesnt really matter which strategy u choose as long as u r making profit.
I dun agree with u that "putting an order 10 pips above or below current price" is not a strategy. It is a strategy based on the logic that if a price moves 10 pips in specific direction, it will continue to move in that direction.
Stick to your rules
Originally posted by uniquetraderUltimate target is profitability. So it doesnt really matter which strategy u choose as long as u r making profit. I dun agree with u that "putting an order 10 pips above or below current price" is not a strategy. It is a strategy based on the logic that if a price moves 10 pips in specific direction, it will continue to move in that direction.
I am sure most of the traders, using this strategy, dont even know this logic. Also there is no logic that price will continue to move in that direction. No analysis is done to assume it so how it can be a strategy?
It doesnt matter if a trader knows logic behind a strategy or not. For example most of us do not know logic behind indicators. We just know their usage. We know RSI levels but we do not know logic behind RSI levels. Same goes for other indicators. The above strategy is developed by using logic of trend is ur friend. If a traders doesnt know logic but using this strategy then it doesnt mean "no strategy trading".
Stick to your rules
I agree with uniquetrader that even if follower doesnt know logic behind strategy, it really doesnt matter. Objective is profitable trading and if someone can make profits without knowing a strategy then good for him.
Well... ummmm...hmmm. ok.
After reading all post, I am of the view that there is no such thing as "no strategy" in forex except if u choose to enter a trade without looking at chart or any analysis and just press sell or buy button which happens rarely. Even newbies try to predict something by looking at chart and this process of prediction is "analysis". And strategy = analysis + entry & exit.
So we can debate on successful and unsuccessful startegies but above topic is not much debatable.
I totally agree with Champ, traders who just randomly click buy or sell without viewing any charts have no strategy and maybe they do not know what they are doing, and do not understand what they should do to invest in the right way.
dear in my point of view strategy is most important role in forex if trader are trading without knowledge then i think some days he will get profit from forex trading but i think loss ratio is more than winnig trade strategy is must needed
No strategy means you are trading on luck base and it will not work in long run. there has to be a method if we want to make trading profitable for us.
Strategy means a plan to acheive objectives. A strategy may fail or may not but without strategy chances of winning are not much.
In forex, traders rely on two things:-
1- Strategy
2- Luck
No strategy means a trader is relying on Luck only. Luck may bring u some profit for a few days but sooner or later u will face loss.
The good or ill of a man lies within his own will. – Epictetus
I don't really encourage these kinds of systems, coz in my opinion having a strategy to follow is the most appropriate way to increase your chances of winning.