If you are trying to develop a successful forex strategy for the first time, you are probably struggling a little bit in trying to figure out what works and what does not. There is so much bad information out there that the forex market itself is getting a bad name. The market isn't bad, it's just the bogus strategies that are making the market look more difficult than it is.
A good forex trading strategy will not actually be a forex system, but an analysis that breaks down several different areas of the market itself that will consistently produce a profit. Trying to predict the market is just plain foolish, what you need to do is develop a way to spot trends and quickly and accurately as possible so that you can take full advantage of them when they occur. This market is built on taking advantage of profitable trends.
If you follow trends versus trying to predict the market, you will find that you are able to keep your risk of loss lower. In order to do this, you must follow a few basic rules, in essence, this becomes your strategy. The most important that you need to become familiar with when trying to spot trends is that you must understand how the market actually works. Education or good forex training is the one key that cannot be avoided or overlooked.
Once you are in the market, you have to establish a market stop. This is your safeguard against getting yourself buried. You should never change this, it is there to protect you. Do not try and go against a loss, it is going to happen and you are just going to have to get out on your stop and reanalyze your data. There is no shame in admitting that you made a mistake as long as you learn from it. Trust me, it happens to everyone sooner or later.
Another thing that you will want to keep in mind is that as no human is perfect, no forex trading system is either. The key is in having a system that will regularly and consistently produce a profit. Taking a loss every now and then is expected, you just have to be able to control them. Follow the simple philosophy that you buy when the market is going up and sell as it begins to go down (this is a trend in case you weren't paying attention earlier) and you will do fine.
I have to emphasize this again - avoid the pratfall of trying to predict where the market will go. Try to do this and you may get lucky, but that luck could lead to overconfidence and horrible losses down the road. Taking any loss of more than 10% is almost impossible to recoup from and trying to predict a market could result in exactly that.