The right time to use your trading strategy

 

Many traders struggle with the decision of using one strategy all the time . The real situation lies in knowing how to differentiate the present market condition you are trading in for an instance A moving average based system may work very well in a trending market but fail in a range bound market. At the same time a Stochastic might give you great signals in a range bound market but result in many false signals in a trending market. The key is to decide which market you are going to trade. If you are going to trade a trending market, pick the appropriate strategy and stick to it and likewise for a range bound market.

 

It is possible that a trading strategy which helped you earn good profit under one market condition does not suits under another market condition. Therefore traders must adapt the most suitable trading strategy according to current market needs.

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