Many people are confused about which strategy is best among price action, elliot waves, indicators, and so on.
Finding the best trading strategy for you can be a time-consuming and difficult process.
But, there are no sure-fire success strategies, and what works for one person may not work for another.
Choosing your best strategy
However, there are a few steps you can take to help you find a strategy that works for you.
A good place to start is to learn about and research the various trading strategies available, such as day trading, swing trading, and scalping, as well as various assets such as stocks, options, cryptocurrencies, and so on.
Examine various strategies used by other traders to determine which ones have been successful. You should also consider the various types of analysis tools that are available, such as technical and fundamental analysis.
Once you have a better understanding of the various strategies available, you can narrow down your options and begin testing them on a demo account or paper trading. This will assist you in honing your skills and determining which strategies are best suited to your personality and risk tolerance.
Now you should backtest your strategies and analyse their performance. This will assist you in determining which strategies are most likely to succeed in the long run.
You should also educate yourself on technical analysis and chart reading, as these can aid in your understanding of the markets.
Finally, keep in mind that no strategy is perfect, so you should always be prepared to adapt and adjust your strategy as needed.
Types of strategies
Certain strategies have proven to be profitable for many traders. Trend following, momentum trading, and volatility trading are few examples of such strategies.
There are strategies based on signals given by
Indicators – volatility, volume, momentum, trend etc.
Price action – Breakout, reversal, breakout and pullback of support and resistance or patterns etc.
News-based – News like earnings release, global news etc.
Trading style – Swing, scalping, day trading etc.
But the best trading strategy is one that is tailored to your specific needs and objectives.
What is the best trading strategy?
This question has two answers: yes and no.
On the one hand, no single “best” trading strategy applies to everyone. Different traders have various trading styles, risk tolerances, and objectives. As a result, what works for one trader may not work for another.
Certain trading strategies, on the other hand, have been proven to be effective over time, like support and resistance breakout, market structure strategy etc.
So, always keep in mind that even the best trading strategy cannot guarantee success. There is always the possibility of loss with any type of investing.
What is the near best stock trading strategy ever?
Although you might not discover the optimal stock trading strategy, it doesn’t imply you cannot generate profits from it.
The probability of achieving even a 55% win rate with proper risk reward ratio can turn you into a profitable trader. Several basic strategies include price action-based, indicator-based, and news-based approaches.
According to me, the nearly best trading strategy would be the market structure trading strategy.
Understanding the basic structure of the market like uptrends, downtrends and consolidations, would enable you to trade in any market and under any circumstances.
The video above is where I learned the market structure strategy from. Then I tweaked it a little, practised it myself and found it profitable.
This strategy, as with any other strategy, works best in higher timeframes. Now this has become the only strategy I use as it is very easy to understand and simple to follow.
Also now, I can trade with utmost confidence. Price action always gives you confidence that no indicator or tips and calls can offer.
I now use indicators mainly for screening stocks, calculating target and stop loss, and as an additional level of confirmation.
Check out this playlist to learn more about market structure basics and the performance of the strategy.