A trading strategy is just a set of rules.
It tells you:
- When to enter a trade
- When to exit a trade
- How much risk to take
- And what conditions need to be met for all of the above
Without a strategy, you’re just reacting to candles and hoping for the best. It’s like jumping into a chess match and moving pieces at random. You might win once in a while—but it won’t last.
Step 1: Pick a Market and Timeframe
First things first—choose your battlefield.
- Want to trade currencies? Try EUR/USD, a beginner-friendly pair with low spreads.
- Interested in less volatility? Maybe USD/CHF or AUD/USD.
- Into faster trades? Try the 15-minute or 1-hour charts.
- Prefer slower pace? Stick with 4-hour or daily timeframes.
Whatever you choose, stick to one or two pairs in the beginning. Learn how they move. Get familiar. Don’t try to master the entire market on day one.
Step 2: Find a Simple Entry Signal
Here’s where most beginners overcomplicate things.
You don’t need 6 indicators yelling at you. Pick one price pattern or indicator setup and learn it well.
Here’s an easy combo:
Example: The Moving Average Crossover
- Use a 50 EMA (Exponential Moving Average) and a 200 EMA
- When the 50 EMA crosses above the 200 EMA = potential buy
- When the 50 EMA crosses below the 200 EMA = potential sell
Is it perfect? Nope.
Is it easy to understand and test? Absolutely.
You could also add confirmation with something like RSI (Relative Strength Index):
- Only buy when RSI is above 50
- Only sell when RSI is below 50
Boom—you’ve got a basic system.
SilverBullsFX actually breaks this kind of setup down in one of their free video guides. It walks you through everything—chart setup, entry/exit logic, and even how to avoid the classic beginner mistakes. Definitely worth a look if you’re building your first strategy.
Step 3: Set Clear Entry and Exit Rules
A strategy is only useful if it tells you exactly what to do.
Here’s a basic outline:
- Entry: 50 EMA crosses 200 EMA, RSI confirms
- Stop Loss: Below previous swing low (for buys)
- Take Profit: 2x your stop-loss distance (risk-reward ratio = 1:2)
This means if you’re risking $10, you’re aiming to make $20.
Keep it consistent. That’s the key.
Step 4: Decide on Risk Per Trade
Let’s say you have a $1,000 account.
Risking 1% per trade = $10.
Even if you lose 5 trades in a row, you’re still alive, calm, and ready to keep going.
Risking 20%? A couple of bad trades and you’re emotionally wrecked—or worse, completely out of the game.
Don’t blow your account trying to double it overnight. This is trading, not Vegas.
Step 5: Test It (Without Risking Real Money)
Before you go live, backtest your strategy on historical data.
Use a demo account. Take at least 20–30 trades.
Ask yourself:
- Did the strategy make sense?
- Were the rules clear?
- Did it protect your account during bad trades?
If the answer is “kind of” or “not really,” tweak it. This is your lab.
Step 6: Keep a Journal
This might sound boring, but it’s crucial.
For each trade, write down:
- Why you entered
- What happened
- How you felt
Over time, you’ll start spotting patterns—not just in the market, but in yourself. That’s where real growth happens.
Common Mistakes (That You Can Now Avoid)
❌ Jumping between strategies every week
Pick one. Stick with it for a while. Jumping around = zero progress.
❌ Trading too many pairs
Focus is your friend. Learn a few pairs well.
❌ Ignoring the strategy when things “look different this time”
Spoiler: They don’t. Follow the rules.
Conclusion: Strategy Beats Luck Every Time
You don’t need the “perfect” strategy to succeed.
You need a simple, repeatable, and disciplined one.
Start with a basic setup. Refine it. Trust it. Learn from it.
And if you want help along the way, SilverBullsFX has a free beginner course that teaches you how to build your first strategy, use it with confidence, and avoid all the typical traps. They also offer high-quality trading signals and 1:1 beginner support—free.
In trading, a good plan beats good luck. Every time.
So make a plan. Test it. And trade smart.
