Basic vs. Advanced Trading Strategies
Strategies can be divided into basic and advanced strategies. Basic strategies in Forex are always valid, and they are the ones that beginners normally access. However, they should not necessarily be abandoned once a certain level of familiarity with trading has been acquired, but they can be profitably combined with other basic strategies or an advanced strategy.
Advanced strategies are more complex to understand and put into practice, but they allow for a more "refined" and less "raw" trading, exploiting indicators that would otherwise be precluded.
However, for these strategies, the experience factor becomes even more important compared to the basic ones. That mental toughness is the subject of advanced trading psychology.
What is the Best Strategy?
The only possible answer, which is both frustrating and disappointing, is that it depends on all the other factors that come into play. The only certainty is that it is extremely dangerous to go "against the tide," so once the direction (the one taken by the big traders) is understood, it is only a matter of deciding which time horizon to move toward. In the case of Forex, the choice oscillates between very short (with scalping) and short (for example, with intraday trading).
The step of choosing the strategy can only occur afterward. But even here, it is necessary to try to assume a fairly clear position and refine the degree of specialization and experience to the maximum extent possible. These serve as basic principles, but then everything that is built around them varies from person to person, so it is a discussion that descends too much into each individual's personal level. In any case, it can be helpful to seek assistance from a tutor in this search.
Entry and Exit Points
There are numerous strategies, strongly differing from each other, that exploit very different parameters, but what they have in common is the choice of the best moment to enter or exit a transaction. Be careful, however, as there is no infallible strategy, and it is always necessary to equip oneself with an excellent level of flexibility to be able to change the choices made previously, depending on the new scenarios that open up. Moreover, for entry points, the use of strategies can be quite clear, while for exit decisions (exit points), paradoxically, one may encounter the greatest difficulties. Which of the two matters more is the question behind an exit or entry strategy. In many cases, there is a risk of having to make purely arbitrary choices, i.e., not supported by indicators or other forms of support.
In any case, evaluations will have to be made keeping an eye on the size of one's deposit, the degree of risk one intends to tolerate (but this should be commensurate with market conditions), and the financial leverage made available by the broker (without neglecting the amount that one actually intends to exploit).
