— Pip master FX trading —

What Is a Trading Strategy
And Why You Need to Stick to One!

So... Picking Trading Strategies

Let’s be real: trading without a strategy is like jumping out of a plane with a parachute you haven’t tested yet. Could it work? Maybe. But do you really want to find out the hard way?

A trading strategy is your game plan. It’s the set of rules you follow to decide when to get in, when to get out, and how much risk to take on each trade. It’s like having a recipe in the kitchen—you follow the steps, and you (hopefully) don’t end up burning your account.

It includes things like:

Your chosen timeframes
The indicators or price action you use
When you trade (session times)
Risk management rules
Entry and exit setups (aka your bread and butter)

Without a strategy, you’re just guessing. And in the world of forex or gold trading, guessing gets expensive fast.

Why It’s Crucial to Stick to One Strategy

Look, I get it. It’s tempting to hop from one strategy to another like you’re speed dating the forex market. But switching strategies every time you lose a trade is the fast track to nowhere.

Consistency is key. A solid strategy gives you something you can measure, tweak, and improve over time. If you’re always jumping ship, you’ll never know what’s actually working—and worse, you’ll confuse yourself more than a cat in a mirror.

Think of your strategy like your gym routine—if you keep changing it every week, you’ll never see real progress (and you’ll probably still skip leg day).

Quick Examples of Trading Strategies

Here’s a taste of the different trading strategies out there. Each one suits different personality types, lifestyles, and levels of patience (or lack of it 😅):

🕰️ Scalping – Super short-term trades, in and out in minutes. Great if you love the fast pace and don’t blink much.

📊 Day Trading – In and out within the day. No holding overnight. Perfect for traders who like structure and a clean slate each morning.

⏳ Swing Trading – Holding trades for days or weeks. You need patience, but it’s great for people who can’t stare at charts all day.

🌐 Position Trading – Long-term trades based on big market trends. Ideal for those who love the “big picture” and aren’t glued to the screen.

💡 Smart Money Concepts / Institutional Style (like we use here) – This is for traders who love structure, liquidity grabs, and understanding what the big players are doing behind the scenes. It’s about precision—not guessing.

Types of Trading Strategies – Which One Fits You?

Here’s a breakdown of the most common trading strategies out there. Each one has its own flavor and vibe—just like traders do.

🔄 1. Breakout Trading

Who it’s for: Action-lovers who like volatility and strong moves.
The idea: You identify key support and resistance levels and trade when price breaks out of those zones with strong momentum.

Example: Price has been ranging for hours, then boom—breaks the range with volume. You enter on the break and ride the wave.

💡 Watch out for fakeouts though—breakout traders need good confirmation.

Learn About Breakout Trading

💧 2. Liquidity / Smart Money Concept (SMC) Trading

Who it’s for: Traders who want to think like the big banks.
The idea: You focus on liquidity zones, order blocks, inducement levels, and stop hunts—essentially trying to follow what institutional players are doing.

Example: You notice a liquidity pool below a swing low. Price sweeps it, taps an order block, and then shows bullish momentum. You enter with sniper precision.

👉 This is what we teach here at Pip Master FX—precision and patience.

Learn About SMC Trading

📊 3. Indicator-Based Strategies

Who it’s for: Traders who like visual tools and clear signals.
The idea: You use indicators like RSI, MACD, Bollinger Bands, or moving averages to help guide entries and exits.

Example: RSI goes below 30, price hits the lower Bollinger Band, and you spot a bullish engulfing candle. Time to long!

🔁 Just don’t overload your chart with 15 indicators and hope they all agree…

Learn About Indicator Trading

🌀 4. Elliott Wave Theory

Who it’s for: Analytical thinkers who love patterns and structure.
The idea: Markets move in wave patterns—five waves up, three waves down—and your job is to figure out where we are in the cycle.

Example: You identify wave 2 correction ending, wave 3 beginning (the strongest one). You enter early and ride the trend.

📈 Warning: It can get nerdy fast, but when done well, it’s powerful.

Learn About Elliot Wave Theory

⏱️ 5. Scalping

Who it’s for: Traders who want quick wins (and can handle fast decision-making).
The idea: You enter and exit trades within minutes—sometimes seconds—based on micro moves.
Example: You trade gold or Nasdaq in the London open and scalp a 5-pip move using a tight strategy.

💥 It’s high adrenaline—but mentally exhausting if not managed well.

Learn About Scalping Strategies

🌞 6. Day Trading

Who it’s for: People who want to be in and out within the same day—no overnight stress.
The idea: You analyze intraday trends and price action and look for trades during key sessions (like London or NY).

Perfect for: Traders who want a daily routine and prefer not to babysit trades overnight.

Learn About Day Trading Strategies

🕰️ 7. Swing Trading

Who it’s for: Part-timers or people who don’t want to sit in front of the screen all day.
The idea: You hold trades for a few days to catch larger market swings.
Example: Price breaks out of structure on the daily chart. You enter and hold through a full 300-pip move.

⏳ It’s all about patience, but the rewards can be big.

Learn About Swing Trading

📈 8. Trend Following

Who it’s for: Traders who believe in the “trend is your friend” motto.
The idea: You wait for clear market trends, enter on pullbacks, and ride the move until signs of reversal.

Example: Price breaks out above structure, forms higher lows, and you hop on during the retracement.

🧭 Great for avoiding countertrend stress.

Learn About Trend Trading

🧠 Final Thoughts – Strategy Over Stress

At the end of the day, it doesn’t matter which strategy you use—it matters that you understand it, trust it, and stick to it long enough to see results.

Jumping from one to another every week is the fastest way to burn out and drain your account. Stick to one, master it, and then evolve when you’re ready.

Here at Pip Master FX, we help you build a rock-solid, smart-money-based strategy that suits your trading style—without the fluff, confusion, or 20-indicator templates.