What is Trading Strategy
A trading strategy is a predefined system with a clear set of parameters that is used to generate trading decisions, whether to buy or sell in the markets and when or what price to enter and exit the trades. Based on either technical and/or fundamental analysis.
Why do you need trading strategy?
To be profitable in the long run, you need to be consistent and be disciplined. Easiest way to ensure that, is by having a trading strategy. Trading strategies would eliminate biases, doubts or fear especially when markets are going against you. In other words, it would rein in on your emotions. For example, traders following a set of rules dictating when to exit a losing trade would be less likely to hold on to that trade hoping that prices would come back in favour of his positions.