Top Forex Trading Strategies that Work Best


 

 

Forex Trading Strategy includes techniques used by all the traders to make a profit on Financial Instruments. Most of the Forex Trading strategies based on Technical Analysis, Chart Analysis, Fundamental or news-based events. Here we are going to show Four Types of Strategies that are used by most traders.

   1) Position Trading:- Position Trading is the oldest and longer-term trading approach where a trader holds trades for a longer period of time maybe for a week, for a month, or for years. These types of trades less concerned with short-term fluctuations or news of the day unless there is a very big reason behind the stock they are trading. Position Trading is completely different from day trading as they make a profit in the primary trend rather than taking short-term profit or fluctuations.

· ·        For Position Trading you need to understand the trend of the firm or industry.

· ·        In Position Trading you may not make a profit every year.

· ·        Applicable in Bull Market Only.

· ·        Needless time to research as you are not connected with short term fluctuations.

 

    2)   Swing Trading:- Swing Trading is a medium-term Trading Strategy where you can hold your trades for days or even weeks. The major goal of this type of trading is to identify the overall trends and then capture the gain within that swing or trend. In this type of trading, this is necessary to understand or learn technical concepts like Support, Resistance, Breakouts, Candlestick, and moving average, etc.

· ·        You don’t need to quit your current or full-time job for being a swing trader.

· ·        It’s possible to be profitable every year because of more trading opportunities.

 

   3)   Day Trading:- Day Trading is short term Trading Strategy where you can buy and sell multiple trades on the same day. Day Trading usually valid on financial instruments. In this type of trading, you can make money during the most volatile session of your instrument. In this type of trading after some time, it becomes stressful as you constantly need to watch the market.

· ·        No overnight risk as your trades closed by the end of the day.

· ·        Can lose a lot more than intended.

· ·        Avoid large lots as you can lose money on it.

 

   4)   Scalping:- This type of Trading Strategy is used for a very short period of time as in this type of trading traders hold trades for a very short period of time as for minutes or for seconds. This type of trading may be dangerous for traders who are new to this market.

· ·        In this type of Trading you must have knowledge of the market.

· ·        You have lots of trading opportunities in this type of trading.

· ·        Need to monitor screens for many hours to make a profit.

Before considering any one of the trading strategies you must identify your goals, objective, and availability of time. Join Best Forex Brokers and Start Trading in Forex Market Today!

 

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