The Best, Easier, and Simplest Way for Beginners to Build a Successful Trading Strategy

Every beginner tries to find the best strategy in the market, which is a mistake. This is because everyone has a different trading style that suits their needs and trading schedule. Therefore, the correct approach is to build or choose a strategy that is personally compatible with you.

In this article, we will discuss the best way to build a strategy that suits you personally.

Essential Steps Before Building a Strategy

Before starting to build your own strategy, every beginner must have a good understanding of all the market fundamentals.

The most important fundamentals to be familiar with are (Technical Analysis, Fundamental Analysis, and Money Management).

These fundamentals must be thoroughly understood and mastered, because any deficiency in any of them will mean the strategy will fail from the outset, leading to trading failure and account losses.

Steps to Building a Strategy

Defining Your Trading Type

First, you must determine your trading style. Do you prefer long-term trading (swing trading), intraday trading (semi-daily trading), or very quick, low-point trading (scalping)?

This step should be determined from the outset, as it forms the foundation for the following steps.

Defining Your Trend and Trading Style

Here, you need to determine your trading method. Will you trade with the trend, focus on trading against the trend, or combine both if applicable?

Each strategy type has its own specific approach and method of operation, so you must define this in detail.

Determining the Type of Analysis to Use

One of the most important points that many people struggle with is which type of analysis to use: technical or fundamental. This is crucial and depends primarily on your trading style. If you're trading swings, fundamental analysis is essential for determining the trend and its strength. It can also be used intraday to identify the trend. However, with scalping, you don't need fundamental analysis; it's enough to avoid trading on major news events.

Pay attention to this point to avoid frequent stop-loss orders.

Choosing the Technical School

Choosing a strong technical school of trading that suits your style is very important. There are many different schools of technical analysis, each with its own advantages and disadvantages. Therefore, you need to decide which school you will primarily work with, alongside classical analysis. Then, master this school and practice it effectively on a demo account.

Choosing the Market to Trade

Ultimately, you need to decide which market you want to trade. Will you be working in the Forex market, exploring cryptocurrencies and Bitcoin, specializing in metals like gold and silver, focusing on global indices like the Dow Jones, or perhaps even venturing into the world of options and the stock market?

Each of these markets has its advantages and disadvantages, and each experiences different market movements and is influenced by different news. Therefore, you must choose the market you want to specialize in and closely monitor its movements and the news that directly and strongly affects it.