Why do traders always need their own strategy

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Blog: Strategic Planning

Why You Need a Plan: 5 Good Reasons

Developing strategy takes time and resources. It requires the time and commitment of some of the most highly paid and highly experienced people in your organization. So, if your team isn’t willing to invest what is needed, I recommend that you don’t do it. Poor planning is often worse than no planning at all.

So, why do you need a strategy? Why take time for planning? There are many reasons. But the Drivers Model focuses on five in particular.

1) To set direction and priorities:

First and foremost, you need a strategy because it sets the direction and establishes priorities for your organization. It defines your organization’s view of success and prioritizes the activities that will make this view your reality. The strategy will help your people know what they should be working on, and what they should be working on first.

Without a clearly defined and articulated strategy, you may very well find that your priority initiatives—the ones that will drive the highest successare being given secondary treatment.

2) To get everyone on the same page:

If you find that you have departments working to achieve different aims, or going in different directions, you need a strategy.

Once you define your strategic direction, you can get operations, sales, marketing, administration, manufacturing, and all other departments moving together to achieve the organization’s goals.

3) To simplify decision-making:

If your leadership team has trouble saying no to new ideas or potential initiatives, you need a strategy. Why? Your strategy will have already prioritized the activities necessary for success. Priorities make it easier to say no to distracting initiatives.

4) To drive alignment:

Many organizations have hard-working people putting their best efforts into areas that have little to no effect on strategic success. They’re essentially majoring in the minors—because their activities aren’t aligned with the priorities. Your strategy serves as the vehicle for answering the question, “How can we better align all our resources to maximize our strategic success?”

5) To communicate the message:

Many leaders walk around with a virtual strategy locked in their heads—they know where their organization needs to be and the key activities that will get it there. Unfortunately, the strategy isn’t down on paper and hasn’t been communicated thoroughly. As a result, few people are acting on it.
When your staff, suppliers, and even customers know where you’re going, you allow even greater opportunities for people to help you maximize your success in getting there.

Once you recognize the need to plan, you now have the role of becoming the catalyst: for facilitating the buy-in and commitment of your leadership team and the rest of your organization. I’ve found that very few executives truly understand how to maximize their role in facilitating strategy. This chapter is focused on you, the leader of the organization, and on the vital role you play in facilitating strategy throughout your organization. Let’s get started.

Michael Wilkinson is the CEO and Managing Director of Leadership Strategies, Inc., “The Facilitation Company” and author of Amazon best-seller “The Secrets of Facilitation”, “The Secrets to Masterful Meetings”, and the brand new “The Executive Guide to Facilitating Strategy.” Leadership Strategies is a global leader in facilitation services, providing companies with dynamic professional facilitators who lead executive teams and task forces in areas like strategic planning, issue resolution, process improvement and others. They are also a leading provider of facilitation training in the United States.

Thread: Why do traders think that the more complex strategy is , the more it will be better?

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Why do traders think that the more complex strategy is , the more it will be better?

Traders often begin with a simple strategy, and see a small return. They then assume that if they continue to tweak their system, taking into account a few more variables, that they will increase their returns. This is not usually the case. Instead of looking at simple things such as price movement ( which is the final determinate in making a profit) and whether the market is trending or ranging, the trader attempts to determine exact reversal points and make more trades.
I have seen traders who are alot of traders at the same time , I think they will confused because these indicators would be giving different results, even they would make predictions more complex.
Choose simple indicators and that should be recommended by professional traders, trading profits are made at the margin__ even the best traders only win slightly more than they lose . Therefore, if a system makes money, stick with it and dont change it; focus on money Management instead.

The forex market is a global market that involve different people from across the world and each individual trader is looking for a better way to make good profit in the forex market. Every forex trader have a strategy and sometimes a trader see that his strategy is not making good profit him and it needs upgrade. The forex market change daily and a good forex trader will study the market daily to see the best strategy that he can use to make good profit in the market.
If a trader must upgrade his strategy he will have to test run it in the demo account to see if it is working well.
There are many indicators in the forex market and traders see that if they begin to tweak each indicator with one another it will give them a better result. The forex market is not an easy market that is why it needs a complex strategy to make good profit in the market.

Why do traders think that the more complex strategy is , the more it will be better?There is no reason that would make us trade in the forex market with a strategy that has come close to complexity and we would experience success because that is responsible for the losses most traders will always experience, you are expecting to make money and yet what you wish to trade is highly complicated, how then can you expect to make something from the live account through this process, because trading is actually some advantages that would make us earn well, we don’t need to have things that makes small business in the world before we can advantage of the range of the things, someone without the largest trading center will make more in the forex market because that is what the forex market have learned.

Forex trading business is s very promising business with lot of benefit in it and before a trader can make it big in the business, he must be a trader that is vast in knowledge and the experience in the market. Spotting good entry in the market is a priority of every trader in the business and the trader can does this through a proper analysis of the market with good trading strategy. With regards to the question that the trader think the more complex the strategy is ,the better is in the market .With my vast experience in forex trading business i believe forex trading business is a very simple and that it doesn’t need any complex strategy in the business before the trader can be better in the business . Forex trading business need a very simple strategy before the trader can be be better in the business.

You are right, we should concentrate on using simple and good strategy during the trading, because the complex strategies may makes our trading hard, and may bring us many fake signals, because these strategies typically contains big number of indicators, and in my opinion i see that most of indicators follow the market, but market doesn’t follow them, so if you have simple and good strategy we should stick with it, and we can improve it step by step, and the thing which can makes our strategy effective is the trading plan, so instead of changing that strategy, we should concentrate on developing our trading plan in order to be able to trade with good money management, beside low risks, because this helps us to compensate any losses during our trading easily, because the losses will be small and this will help us to compensate them without any high risks, because the important thing in Forex trading is making profits more than the losses, so if we have the strategy that can achieve this to us we shouldn’t change it even if it bring us small profits, and step by step we can improve it in order to achieve bigger profits using it.

The traders that have this kind of mindset is not a professional trader yet. A good trader will certainly know that keeping things simple in the forex market with certainly make a trader get better returns often. It is not all about the complexity of a trading strategy that actually matters in the forex market but it is all about the depth of undert that the trader have about that trading Strategy that actually matters.
Traders are supposed to discover the variables which they will regularly use for the trading and therefore ensure that they have good unset of the market when they make trades so as to maximize the forex opportunity to make good profits.

I had a discussion before about this matter and I think that the whole thing is related to the experience and knowledge of the trader in the market and usually this thinking is for beginners who do not have enough experience and therefore comes to Forex and he imagines that the matter needs a lot of tools and that he gives him such strategies as he is It gives him strong secrets in Forex, but with experience you will discover that all this is not true
And whenever you learn and understand Forex well, you will resort to simple strategies and a few charts analysis tools.
By following many professional traders, you will see that their chart is a simple chart that contains only two or three indicators and is already getting a good profit rate.
Therefore, you have to give up any complicated and multi-tool strategy and choose simple and easy strategies and adhere only to their terms of trading.

Why do traders think that the more complex strategy is , the more it will be better?
The fact that someone made a decision that they what to trade with complex strategies does not mean that they would make more money on the forex business than anyone else, that is the main consensus that we need to be using for trading, there are less complex methods for trading rather make more in the forex market than the individual that have decided yet they want to generate advantage that would make their accounts increased tremendously, this business does not have respect for anyone, there are some rules and regulations that would have to be done before we can make something for ourselves, if you think that you understand the business very well, you may make moral mistakes that would give us the advantage of losses.

I believe this is one of the misconceptions of the forex market, and it’s usually the new forex traders that make this mistake. It’s just like when you’re writing a math exam and you’re giving a question to solve. You literally have no idea how to solve the question so you resolve to applying an elongated formula and derived a long mathematical expression just to fool the marker. Most traders are scared of using something simple, thinking it will be inefficient. As a matter of fact, there’s an acronym called KISS, it means “Keep It Simple Stupid.” What that acronym means is that forex trading strategy don’t have to be complex. You don’t need to activate hundreds of indicators on your chart before you make those pips, in fact the simpler the better.

For me, this is a rather naive idealism about the forex market. Every single books and seminars I have ever come across as with the forex market clearly states it that simplicity is the hallmark of success in the trading business, and so you would reason with me that there is absolutely no point in trying to make anything difficult for yourself as a forex trader. Even successful traders would let you understand that they have been able to create more success in the trading business by basically sticking to very simple trading strategy that helps them get into high probability earning trades. A forex trader should never at a time underestimate the power of a simple strategy, the use of a complex trading strategy requires a lot from a forex trader and if you would ask me it is not completely advisable to go about the mastery of complex concepts.

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Why the strategies do not work

Those who spent at least several hours online with trading platform in search of a successful strategy probably noticed that strategies in options not always work. Legitimate question may occur: if the easiest option trade involves predicting the direction of the trend, and guess it’s a 50/50 shot, then why do we need strategy if they don’t provide the result?

Strategies in options: what determines the success of the trade

Strategies are paid and free strategies on the basis of one or more indicators copying of trades, both free and paid expert advisors, both free and paid signals — all of which should make trading as profitable as possible. But in the end still about 90% of novice traders lose their deposit. Why is it so?

Strategy in binary options is a set of methods (technical, psychological, mathematical, fundamental), designed to make the forecast as accurate as possible. And it is logical that for each case the strategy should be individualized. This is comparable to the game of chess, where the scenario on the board depends not only on the strength of the partner and the game that he sets, but of momentary circumstances. Similarly, in options: a strategy, based on various indicators not only depends on the asset and time interval, but also on the situation on the market.

  • Important: do not think that the free strategy is the key to success in binary options trading, and even more do not consider that it can bring 100% of success. Every trader should develop his own personal tactics, built on the obtained knowledge, experience, psychology and desires.

    Binary options trading based on technical analysis

    There are hundreds of technical analysis indicators. Their task is to determine the direction of the trend, but “a nuclear bomb always hits the epicenter” — if the direction of the trend exists, the indicator will display it, but the trend will also be visible to the naked eye. Theoretically, the indicator lines should take into account the historical experience (based on historical data), but exactly the same situations do not happen. The result: a technical strategy in options triggered by time.

    Technical analysis is more applicable to the Forex which can be a 50/50 probability to earn higher profits. In options, where profits are fixed, technical analysis begins to falter, leading to losses in the medium distance.

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    Binary options trading based on fundamental analysis

    A common method of speculative trading, for example, after the release of important reports or force majeure events. Strategies based on fundamental factors, can generate income, but because of the unpredictability of news are not the basis for continuous trading. This method has several disadvantages:

    • Publishing of reports from, for example, the USA is relatively predictable, and in the quotations the result is already laid smoothly. That is, the coincidence between the forecast and reality does not always change the prices news. It is also difficult to predict the balance of forces “bulls” and “bears.” Because the one who makes a bet before the news or right after it, plays the lottery;
    • news can be manipulated. It is enough to apply the material on one side only to shake the market in the right direction. Accordingly, the inexperienced trader is conducted in the manipulation of losing money in favor of the one who rocks the market.

    Fundamental trade is applicable to the futures or spot assets, but not to binary options where the trade is short term and has a fixed profit.

    Mathematical modeling

    In the analysis of economic processes mathematical modelling is indeed the case. But it has nothing to do with those strategies, which are based on mathematical analysis offered by binary brokers or are sold to developers. Binary options are not options, but only a deal between a trader and a service regarding response of the trend. If in Forex there is purchase and sale of an asset, binary options is a simple bet.

    It happens that brokers “simplify” the task of the trader, offering trading signals. And even offer a free trial period. As the terminal is under control of the broker, then “suddenly” signals will be at a loss from the occurrence of a paid period.

    Martingale

    The strategy is based on the fact that each next bet after a losing trade is doubled. The calculation is done on the theory of probability. A similar strategy in the options requires a large deposit. I think it makes no sense to talk about the risks, it is enough 3-4 times in a row the transaction to be unprofitable (probability theory works on a large number of events) to be left with nothing.

    Summary. Strategy in options doesn’t not work for one simple reason — wrong approach of the trader. Binary options trading is more like 50% of intuition and positive attitude and 50% tactics. If all strategies would be profitable, then everyone would have earned a profit. But how could it be taken, if there is no generation of more money? Therefore we strongly advise you not to spend money on paid signals or strategies, and to practice tactics and to develop your own trading mechanism. And of course rely on intuition!

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