What is really the best forex trading strategy out there? The best forex trading system or strategy is a system or strategy that allow to grow your account over time. Trading forex is not a light job, it is not easy, however, when you pursue the right education with the right mentors, you can overcome the challenges and become a successful trader.

One of the best forex trading strategy that I have come across is the London Close Trading Strategy. What is the London Close strategy? The London close strategy is a trading strategy that is time specific. It is a counter trend strategy with setups occuring almost daily around the London Close. Because it is so time specific, this London Close counter trend trades are highly predictable. You do not need to sit in front of your computer all day. Within three to four hours you are usually done with your day trading. Mostly successful.

Who developed the London close trading strategy? Shirley Hudson has been trading and documenting the results of this strategy for about eighteen months now and the results are out standing. The setup is time specific. You start watching your charts about 8 am EST and your setup should occur between that time and 12 noon EST when the London trading session closes. I have been trading this system for a while. While Shirley focused on the London Close because of her busy schedule, you can learn the strategy and apply it on other trading sessions.

Why is this the best forex trading system and why is it so profitable?

Since I started trading with a live account back in 2005, I have never come across a strategy where the author is willing to share her trading journal and update her results everyday to proof the  strategy is working that well. But Shirley does precisely that. The London Close Trade can be predicted with a high degree of accuracy. This occur because price almost always retrace around the London Close. If you look at your charts around the London close, say 11 am EST to 12 noon EST on the 5 minute chart, you will notice time and time again, these retracements occuring.  Price usually falls back to a predictable trading range.

Shirley does not use any indicators on her chart. Sometimes she does have MACD. I usually add the triangular moving averages (5, 21 and 34).  Check out your 5 minute intraday chart, plot these three moving averages and see how the time specific setups occur. You will be amazed. You can listen to Shirley Hudson’s interview regarding her own experience trading the London Close trading strategy. She actually 90% accurate. That is awesome.

The London Close trading strategy is simply one of the best forex trading strategy that anyone can learn and successfully implement to become a successful forex trader.

If you want to win at forex trading you need a forex trading strategy that can help you enter the elite 5% that make money and avoid joining the vast majority of losers.

This article is all about devising a forex trading strategy for success in 5 simple steps.

1. Accept Responsibility

The first point to keep in mind is that you are responsible for your own success – if you think you can buy success from a vendor for a few hundred dollars – you are going to lose.

Only you can make yourself successful and this means you have to develop your forex strategy on your own. The good news is, everything about forex trading can be specifically learned and is free on the net.

2. Learn the RIGHT knowledge

Forex trading is all about learning the right knowledge – This is an important point, many traders simply think the more the better in terms of knowledge, but this is simply NOT true.

You get rewarded for results in currency trading and the accuracy of your trading signals, not the effort you make.

Your forex trading system that you use in your trading strategy should be kept simple and easy to understand. This way, ensures it will be robust in the face of ever changing market conditions.

Simple systems work far better than complicated ones and have the added benefit of being easy to understand by you – This means that you will have the confidence to follow it with discipline.

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3. Deciding Your Methodology

You will need to decide if you want to a technical or fundamental trader.

By far the easiest is to be a technical one and use forex charts to spot trading opportunities.

You need to get the odds on your side and this means NO forex day trading!

It doesn’t work, as all short term volatility is random. Instead, base your forex trading strategy on swing trading, or long term trend following.

Both these methods will work and the one you choose is personal preference.

You then need to have a clear understanding of support and resistance and some momentum indicators to help you get into trades ( this is covered in our other articles )essentially you need to confirm price momentum is on your side when you trade.

Finally, learn the concept of “breakouts” it’s a timeless very profitable methodology.

4. RISK and Money Management

If you don’t like risk don’t trade forex markets. Most traders don’t understand risk and are so frightened of it, they end up being to cautious and lose.

If you want to make money you need to take calculated risks, at the right time.

You need to have the courage of your conviction. If you come into forex trading thinking you can risk 2% of your equity and make money do something else, as you will lose.

5. Trading is in the head

Most traders fail because they cannot obtain mental discipline, to follow their forex trading system through bad periods i.e. they lack discipline due to lack of confidence.

If you develop your forex trading strategy yourself, you will understand exactly how and why your system works – this will instil confidence and from confidence flows discipline.

Keep in mind if you don’t have discipline to follow your system you have no system!

6. Realism

Sure people get rich quickly but that’s the norm for most currency traders.

You need to have a realistic forex trading strategy and that means aiming for 50 – 100% per annum.

If you can achieve this you will be up there with the best and this will compound to a lot of money over time.

REMEMBER!

You don’t need to buy any material to construct your forex trading strategy, its all free online.

You just need to research it and avoid people telling you that you can buy success from them, for a few hundred dollars – you cant, there are no shortcuts

The good news is, everything about forex trading can be specifically learned and you can do it all on your own, if you are prepared to put in a little time and effort.