Whether or not the particular forex trading strategy you are using is right for you is not really a question that traders often think about. However, it is very important to trade a strategy that works well with your daily schedule, your passion for the markets, and most importantly the amount of money you have at your disposal to trade with.

• Daily schedule

If you work a full-time job, chances are you are going to need to use a forex strategy that allows you to hold positions for multiple days or weeks, without having to check on them numerous times each day. This means you should forget about day-trading or other short-term forex trading strategies. Research proves that traders who hold their trades for longer periods of time make more money each year, on average, than day traders, so this is actually something to be excited about.

Trading the higher time frames, like the 4 hour, daily, and weekly charts, can actually help you make more money faster. The way they do this is that they influence you to interact with the market less, thus you have less of a chance of meddling with your trades and screwing them up while they are live. Also, higher time frames work as filters; they filter out the noise of the lower time frames that so often confuses traders and causes them to see trading signals and setups that aren’t actually there. Even if you don’t have a full daily schedule, you should still consider trading solely off higher time frame charts, it will influence a more relaxed trading mindset and this will cause you to make fewer emotional trading errors than if you were over-analyzing the lower time frames all day and night.

• Passion for forex trading

How interested are you in forex trading? Do you simply want to trade a little bit each week or month to hopefully augment your monthly income? Or do you want to try and become a full-time currency trader, trading every day and learning everything there is to know about the forex market? These are questions you must ask yourself before committing to any one forex currency trading strategy. It is worth keeping in mind that just because you only want to look at the markets once every couple of days, as opposed to once every hour or two, does not mean you will make less money than if you were to spend more time analyzing the markets. There isn’t really anything wrong with analyzing the markets for multiple hours each day, but keep in mind that once you reach a certain level of proficiency it simply is not necessary to analyze the markets this much.

• Disposable income

Finally, if you don’t truly have any disposable income to trade the forex market with, you really should not be trading at all. One of the biggest mistakes that beginning forex traders make is trading with money that they cannot afford to lose. When you do this you actual start trading from an emotional mindset from your very first trade, because if you are trading with money that could be better used for something of higher priority, you are going to be too attached to every trade you make, and this will inevitably cause you to screw up your trading.