What Is The Best Trading Strategy

 The best trading strategy is the one you discover by accident. Successful traders often have an edge (something most people don't) and that helps them to stay on top of the market. They often avoid talking about it; and instead keep noobs occupied with trading strategies, maybe because the edge they have is illegal (insider information, stolen data, e.t.c), or because they don't want its strength diluted.

That is why you hear many newbies falling over themselves trying to learn the best trading strategy. Interestingly, many have spent their time running from one trading strategy to another. Elliot Wave, Support and Resistance, Fibonacci Zones, Harmonics, and now ICT. But let them ask themselves a sincere question: "Have I really Eliminated Risk?"

I think you will find that the answer is no.

So What Strategy Actually Works Best?

The best strategy is your own strategy. Whatever system you currently use can give you the returns you want. As a matter of fact, it has the best chance of making you profitable. This is because you have already spent so much time on it, and so you probably understand it better than any system you are about to learn. Being ahead of the learning curve helps you get closer to the level you want to attain.

Personalize it to fit your personality; make it customized to yourself. For Example:

I use technical analysis to determine support and resistance zones. But I often find that a breakout stalls, and then another resistance has to be broken after a range is formed. Therefore, I often enter the first trade with minimum lots, and then, after the first trade fails, I could enter with a bigger lot, usually in the same direction. As soon as there is profit when I calculate the first (which could be in loss) and second entry, I close the trade. Profit made.

Rinse and repeat.

Who says you have to set a take profit at the next resistance? Who says you have to wait for a count to become completed? Who ever made you believe that you have to anticipate the next reversal zone? What assurance do you have that price will ever get there?

I know I am not the only trader with this approach; there are many others who use this neat, respectful approach. So why do so many people keep running after new strategies?

For The Same Reason They Run After Indicators

Many have been fooled into thinking that trading is some get rich quick racket, and that all they need is a holy grail system which will make them rich. They are misled into this type of thinking because they are bombarded by social media influencers posting about flipping accounts from 0 to 0,000s on a daily basis. This type of relentless marketing can have a mind-warping effects on people - especially people who are new to the entire concept of trading.

Indicators, Strategies, Robots, and everything else can only be as good as the person using them. The person behind the screen has the ultimate control; when to start, when to stop, and when to stay out of the market entirely. This control can only be there if the trader maintains his presence of mind; his discipline, and his own approach to life in general.

Yes, Trading IS Philosophical

Your mindset determines how you approach the markets. Even with the best trading strategy, you are not going to do a world of good for yourself if you are not mentally, and emotionally grounded. This is because losses will come, no matter how good you are, or your system is.

Consider this; most people blow up accounts after a good run. They make money, and then lose it all. Ask yourself what happened. They must have been some level of good to make the money; but that is not enough in the long term. 

You need to have a plan for when things don't go right; and you have to stick by that plan when things don't go right.

The best strategy is the one you discover by accident. It must have taken a lot of trying and testing in order to say "wow, this works." That discovery must have taken a lot of patience, and it must have come with a lot of clandestine influence from your sub-conscious. 

The next best strategy is one you learn, and that you find that it matches your temperament and personality.  

One Last Thing To Think About

AI (or are they calling it S.I now?) brings a lot of value to the table; but it is not possible to know how the market will react. What many have failed to realize is that the market is a living, breathing organizm, and that it responds, adapts and recalibrates with stimuli. AI is stimuli, and the market will react - one way or another. 

The structure will never change: take from the many, and hand to the few.

Read: 

FOMO - The New Market Driver

Does Technical Analysis Really Work?

How Do I Know If It Is FOMO Or a Valid Trade?

FOMO runs the markets these days; with the coming of social media, news spreads faster than ever before. As assets move, word gets around - often making them move even more. At some point it is going to be FOMO; people are going to get in for fear of missing out on the profits. But as a trader you may find yourself thinking: "is this a trade I would normally take? Am I trading this out of FOMO?"

This is a valid question because the pain that comes with losing money after FOMO-buying an asset is usually worse than the pain of missing out of any potential profit. This is especially true for those who have trading rules, and who ignore those rules, only to get burnt. Ouch!

We have all been there - at least once. To avoid going there too often, we need to be able to distinguish between FOMO and (our) valid trades. 

To Detect FOMO, Ask Yourself:

Why haven't I traded this sooner?

If a trade aligns with your trading rules, you should take it. That is what everybody does. You define your risk and time your entry. This is exactly how professionals make money in the markets. Even when they make losses, they can write it down or write it off because they did what they were supposed to. The markets just did not co-operate that time.

A bad trade is a bad trade. They Move on.

So if the trade or signal is valid, why did you not take it earlier. That is what every one of us should ask himself; a kind of filtering the trades in our minds. Placing a trade after seeing a hundred people talking about it on Social Media is easy; emotions kick in, you feel a rush, and you click buy or sell. Professionals don't do that; they have their own ways of spotting trades - their own rules.

Another Question to ask yourself is:

Why is Everyone Talking About This NOW?

Yes, very few fishermen have ever stopped to wonder where the fish come from - there is either plenty of fish, or no fish today. But let us assume that everyone was pointing further and further out into the water, telling you that there was an abundance of fish OUT in the sea, would you risk your small canoe, your life? The analogy is probably stupid - but I think it makes the point.

Real traders identify trades using their own systems; breakouts, Fib levels, Elliot Waves, FVG, and so on. They do not rely on FOMO probably created by bad actors, and spread by gullible newbies.

If everyone is talking about it, then it is probably too good to be true. People with large boats can probably afford to sail far into the sea, risking much to get much, but the same is not applicable to those of us with small accounts - ahem, boats. 

FOMO Is FOMO

Without the filtration questions we are going to do a lot of dumb stuff that's going to hurt. Even if the Butterfly Effect was false, the initial hurt can still lead to more pain.   

If you are taking a trade impulsively, after having seen it on social media, then you are trading FOMO. If you are taking a larger lot size than you would normally do, then you are probably trading FOMO. If you cannot explain why you are taking a trade, you are probably trading FOMO.

If it feels and sounds like FOMO, then it probably is.

FOMO makes the brain go on leave, while emotions run wild. It takes away one's ability to think critically, and puts one in a frenzy. Animals that are about to fall for a bait often go into a frenzy too.

A Bad Ending

We have seen it happen so many times, and yet we continue to fall for it. Something goes parabolic, we rush in, the price crashes, and we are left holding the bag. We refuse to sell at a loss, and so we hold, while feeding on hopium, and praying for the trend to change. Some have committed suicide due to FOMO, while others have seen themselves in very difficult financial situations.

Yet, FOMO is becoming more important in today's markets - in ways we are yet to fully understand.

Read:

FOMO The New Market Driver 

The Best Brokers For Trading

Most lists of the best trading brokers you will find online have elements of marketing in them. The authors may have started out honestly, but they were eventually corrupted by the brokers. However, this list is authentic; it is written by someone who is exactly in your shoes, struggling to find the right broker. This article will be updated regularly.

The right broker will actually depend on several factors: what exactly you trade, your trading level, your trading style, your capital (very important), and your country of residence.

Because there are too many factors to consider, it is not reasonable to curate a general numbered list. The approach will therefore be to group them according to trading factors.

Best Online Brokers According To:

Assets You Trade

If you trade crypto, then Binance is still the top pick. It is the largest exchange in the world by trading volume and user base, holding roughly 28.5% of the spot market. Its liquidity is unmatched. For new projects, Binance is also widely seen as the gold standard; a token getting listed there suggests it has passed some level of screening. On top of that, Binance consistently leads in daily trading volume, which means your orders are more likely to fill at your desired price with lower slippage.

If security and regulatory compliance matter more to you, Coinbase is another option worth serious consideration. It is a Nasdaq-listed company in the US, supervised by American regulators, extremely beginner-friendly, and deeply integrated with its own L2 network, Base. Coinbase is also more transparent on consumer protection; for example, it is one of the few exchanges that explicitly promises not to sell user data, and it allows users to request deletion or access to their stored data directly within the app.

Kraken has one of the cleanest security records of any exchange. It has maintained a zero-fund-loss record for years, and its cold wallet system has received the highest security rating from CertiK. If you plan to hold a large crypto position long-term, Kraken's custody security is worth your time to look into.

For traders chasing early tokens and long-tail assets, Gate covers over 98% of small-cap tokens globally, with more than 4,000 trading pairs. Many new projects you cannot find on Binance or Coinbase can be positioned early on Gate. Of course, that also means higher risk, and you need to do your own homework.

Regarding Blockchain.com, I need to add a caution: although it has a long history, recent user complaints have centered on withdrawal difficulties and accounts being frozen without explanation. Given the safety of your funds, I would advise caution with this platform.

Finally, if you are in the US, note that Binance's global site is not available to American users. US users can use Binance.US, but its product depth and liquidity fall far short of the global site. Coinbase and Kraken do not have this problem; both are US-based and fully compliant.

If you trade forex, indices, and precious metals, then your options range from Pepperstone to Alpari. Between them, there are several good names: Etoro, Interactive Brokers, XTB, FXTM, Roboforex, XM, and so on. Of course, the broker you choose will depend on other factors.

Your Trading Level

If you are a newbie trader, then the best brokers for you will probably be XM, Forex4you, or Fusion Markets. Forex4You allows newbies earn more (or risk more) because they can copy other traders, although even the traders being copied may be newbies themselves, or people at the intermediate level.

If you are at the intermediate or pro level, then you will definitely need a broker with a stronger reputation, as you will probably put in some serious money and will likely try to build a brand identity of your own. 

Pro traders often earn through account management or social (copy) trading. You should probably go for Exness, Etoro, Pepperstone, Alpari, FXTM, and maybe Roboforex. 

Be careful! On social media you can often see big accounts promoting brokers; please be aware that they are paid to do so; the trading terms that apply to them may not apply to you.

Your Trading Style

Your trading style is also very important. Swing traders need to consider how much they pay for swaps and any other charges that come with holding trades over weekends. Day traders and scalpers need to worry about spreads and speed of execution. Position traders have to worry about whether they will be allowed to hedge their trades.

Exness has accounts that don't charge swaps at all, enabling you to hold trades for as long as you need so that they can come into profit.
Spreads are not very high with Roboforex and FXTM.
Alpari allows you to hedge all you want, and they also have binary trading right in the same platform, so you can maximize gains on moves you are sure about, depending on how much capital you have.

Your Capital

Deriv (formerly Binary.com) is one company I could put my life savings in. Not only have I used this company for 8 years without any issues, but I have never seen anyone complain about them. Even in third world countries, some traders maintain accounts in tens of thousands of dollars without any issue. However, in my experience, you can trade binary options with them if you have a small balance. Forex, not so much.

Etoro is another big name; they handle big clients fairly easily.

Alpari is great for small guys like myself. I never had any problems with making withdrawals, and when you look at their PAMM Account leaderboard, it is clear that some people have hundreds of thousands of dollars in the company.

Your Country Of Residence

Most brokers shy away from engaging clients from the USA. If you are from the US, then the added filter you must add is asking each of these brokers whether they work with clients from your country. People from other countries have it a lot easier; most of the brokers mentioned in this article work just fine.

Related:

Does Technical Analysis Really Work?

FOMO - The New Market Driver

Secrets Of The Trade: How To Trade With A Small Balance

Key Takeaways:

If you are a newbie with a small account, Fusion Markets is probably your best bet.

If you have intermediate-level experience and want quick withdrawals, Deriv, Alpari, Roboforex, and FXTM should do just fine.

If you are a pro and you want to earn through account management and copy trading, Forex4You and Roboforex are good places to look. If you are working with large capital, then Etoro, Alpari, and FXTM are your best options.

How To Make Profits From Trading

An animal sees its reflection and charges, only to injure itself. For many years I was that animal: trade, make some profits, and then charge like an enraged bull, only to blow the account and wound my ego. Ego is like a reflective glass; but one that shows too big an image; enticing one to trade against himself, against his account size, and against his instincts.

"If you're wondering how to make profits from trading consistently, these six principles are more important than finding the perfect indicator or strategy." 

 

Ego is like a reflective glass, but one that magnifies your image. It convinces you that you are bigger than your account, smarter than the market, and somehow exempt from the rules that govern everyone else.

The irony is that making profits from trading has very little to do with finding the perfect strategy. It has far more to do with mastering yourself.

The market rewards discipline far more consistently than intelligence. Learn to control your emotions, and profits become the natural consequence.

How To Make Profits From Trading

If you want to become consistently profitable, stop asking, "How can I make more money?" Instead ask, "How can I become the kind of trader who deserves consistent profits?"

These principles will help you get there.

1. Hide Your Profits And Stop Loss

The market does not care how much money you stand to make. Neither does it care how much money you stand to lose. Yet countless traders spend hours staring at floating profits and losses.

The moment you focus on money, emotions begin making decisions.

A winning trade tempts you to increase your position size. A losing trade feels like a personal attack that must be avenged. Before long, your trading plan disappears.

If your platform allows it, hide the profit and loss column. Judge your trades only by whether your setup remains valid.

Your job is not to count money.

Your job is to execute your edge.

The farmer does not dig up his seeds every day to check their progress. He plants, waters, and then... fingers crossed.

Trading requires the same patience.

2. Resist The Urge To Show Off On Social Media

Nothing feeds ego faster than public praise.

A trader posts a winning trade, receives hundreds of likes, and slowly (or maybe quickly) begins trading for applause instead of consistency.

The market has humbled so many people like that, and it will continue to do so. The Markets + Social media is a very dangerous mix. 

The dangerous thing about social media is that it rewards spectacular outcomes rather than disciplined behavior. Someone who doubles an account through reckless risk-taking often receives more attention than someone quietly compounding wealth over many years.

Only one of them is likely to survive.

Protect your privacy. Let your account grow quietly. He who laughs last, laughs the best.

3. Reduce Your Position Size

Most traders are not losing because their strategy is bad, they are losing because their position size is too large.

Oversized trades create unnecessary stress. 

You cannot sleep. You stay up all night - watching every tick. Every candle suddenly feels like life or death. Fear appears. Greed appears. Common sense disappears.

Smaller positions give your mind room to think clearly. You are more likely to close a losing trade early when the position is small. With a large position you may refuse to accept the loss. you may hold on a little longer, hoping that it will reverse. But hope is a bad strategy in trading.

It causes anxiety. By the time you have finished hoping, the damage has probably become too severe.

If a trade is causing anxiety, your position is probably too large. The market should n\ever control your heartbeat.

Many traders spend years searching for a better strategy when the real solution is simply risking less.

4. Stop Trying To Get Rich Quickly

The day I learned the difference between trading and gambling is the day I understood the market. It is remarkably patient; waiting for you to lose or gain.

It transfers money from the impatient to the patient. If you are patient, even if you lose today, you will win tomorrow - or one of these tomorrows.

Most blown accounts begin with a single dangerous thought:

"I need to make more money, faster."

That mindset creates overtrading, revenge trading, excessive leverage, and abandoning perfectly good trading plans. Interestingly, even those with good plans sometimes find themselves thinking "I can make big profits from this move." That is the market baiting you.

How you react determines whether you are a newbie or a professional.

Professional traders ask a different question.

Instead of asking,

"How much can I make today?"

they ask,

"How can I still be trading five years from now?"

The first question creates gamblers.

The second creates professionals.

5. Accept That Losses Are Part Of The Business

Every trader wants certainty. But the market does not work like that. It is not a destination; it is a journey that never ends - and journeys have ups and downs. You must accept the fact that you are on a road - and you did not design that road. Even when on the right path, the road will be bumpy - full of rocks. Those rocks are losses. 

A trader who cannot accept losses eventually destroys himself trying to avoid them. He widens stop losses, averages into losing positions, and refuses to admit when he is wrong.

Losses are not evidence of failure. See them as a business expense.

Supermarkets expect theft.

Airlines expect delays.

Successful traders expect losing trades.

Once you accept that reality, you stop taking losses personally and start managing them professionally.

6. Follow A System

The ego loves improvisation. It loves to conquer new ground; chart new territory; defeat new enemies. 

To achieve that, it makes you believe you are special, and that you can see things (trades) that nobody else can.      

When you believe that, you also believe that rules are optional.

The market punishes that belief.

A trading system exists to protect you from yourself. It tells you when to enter. When to exit. When it is best to sit on the sidelines, with popcorn in your hands.

Trust your process, and control your emotions. 

I should probably frame that  and put it on my wall. That may be the secret to profitable trading!

Related:

Does Technical Analysis Work?

What Is The Best Investment? 

How To Trade With A Small Balance 

Conclusion

The greatest enemy of a trader is rarely the market. It is rarely the broker. It is rarely the news.

It is the person staring back from the screen.

The market exposes every weakness: greed, impatience, pride, fear, and the endless desire to prove oneself right. Many traders spend years studying charts while ignoring the one thing that matters most - their own behavior.

The day you stop trying to conquer the market and start conquering yourself is the day trading begins to make sense.

Profitability is not a destination. It is a by-product of discipline.

Master your ego, and the profits will take care of themselves.

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