What keeps us alive? I agree, there are a lot of things. But which one is the most important?
OXYGEN. Yes, you are on point.
If you want to make a good living trading, you need STRATEGIES like you need air.
But there’s a HUMP!
Not every plan will work for you. Because each trader has his or her own way of trading, which has worked out well for them.
So, in this answer, I will put all the strategies together to make a guidebook for forex trading strategies that is flexible and works.
Scroll down a bit; we’re about to start!
Why do we need to use strategies that have worked before?
The answer is in the question. “SUCCESSFUL” is the key word here.
Strategies are meant to make sure that everyone wins. But not all plans of action work. Different plans are put forward based on the situation and state.
We already know that nothing stays the same on the forex market. It keeps moving up and down as it turns. So, if you use average strategies, you won’t just help yourself, you’ll put yourself in real danger.
But what’s the ESCAPE?
Yes, and we’ve already talked about it. What’s that?
To follow the type of strategies that can be used most often. So that you can switch between them based on what you’re seeing.
But I have a question for you. “What is Trading’s main purpose?”
And I know what you’ll say. “MAKING PROFIT”. Isn’t it?
Well, if a trader wants to make money, he or she should focus on getting rid of the losing trader and instead pay attention to the winning trader. With advanced forex trading strategies, you might be surprised at how quickly your profits grow.
Before we get to the most successful forex trading strategy, let me show you a chance of winning:
Three Effective Strategies
By now, you have determined a time frame, the ideal position size for a single trade, and the anticipated number of transactions you wish to open over a certain time period. Below, I describe three profitable Forex trading tactics that are widely utilized.
Scalping
Scalping is a popular Forex trading strategy that focuses on minute market fluctuations. This technique entails initiating a large number of trades in an attempt to generate modest returns from each.
As a result, scalpers strive to create higher profits by accumulating numerous smaller gains. This strategy is diametrically opposed to retaining a stance for hours, days, or weeks.
Due to Forex’s liquidity and volatility, scalping is extremely popular. Investors seek out marketplaces where the price action is continually fluctuating in order to capitalize on slight swings.
This style of trader focuses on gains of approximately 5 pips every trade. However, they are anticipating a significant number of successful trades because gains are consistent, stable, and simple to get.
Scalping has the obvious disadvantage that you cannot afford to stay in the trade for too long. In addition, scalping involves a great deal of time and focus, as traders must constantly review charts to identify new trading chances.
Now let’s see how scalping operates in practice. Below is the 15-minute EUR/USD chart. Our scalping trading technique is predicated on the notion that I will sell if the price movement attempts to climb above the 200-period moving average (MA).
In roughly three hours, I identified four trade possibilities. Each time, the price movement crept slightly above the 200-period moving average before reversing direction and going lower. A stop loss is placed 5 pips above the moving average, although the price never exceeded the MA by more than 3.5 pips.
We aim on achieving a large number of successful trades with lower rewards, so our take profit is similarly 5 pips. Consequently, a total of 20 pips were accumulated using a scalping trading method.
Day Trading
Day trading refers to the trading of currencies during a single trading day. Although applicable to all markets, the day trading method is most commonly employed in the Forex market. This trading strategy recommends opening and closing all trades within a single day.
No post should be unfilled overnight in order to minimize danger. Unlike scalpers, who seek to remain in markets for only a few minutes, day traders are typically active throughout the day, monitoring and managing open positions. The majority of day traders use 30-minute and 1-hour time periods to develop trading ideas.
Numerous day traders rely their trading methods on the news. Scheduled events, such as economic figures, interest rates, GDPs, elections, etc., typically have a substantial effect on the market.
In addition to the position limit, day traders typically establish a daily risk limit. A common decision made by traders is to set a daily risk limit of 3%. This will safeguard your account and funds.
In the chart above, I can see the hourly movement of the GBP/USD pair. The foundation of this trading approach is locating horizontal support and resistance lines on a chart. In this instance, I am concentrating on resistance as the price rises.
The price action reaches the horizontal resistance and promptly turns downward. My stop loss is positioned above the last swing high to permit a slight breakthrough of the resistance line. A stop loss order is therefore set 25 pips above the entry point.
On the downside, I put a profit-taking order using the horizontal support. Ultimately, the price movement flips lower, yielding profits of approximately 65 pips. Let’s see a quick comparison on Scalping VS Day Trading Strategy:
Position Trading
A position trading strategy is a long-term one. This trading approach, unlike scalping and day trading, focuses primarily on fundamental issues.
This technique disregards minor market swings since they have no impact on the overall market picture.
Position traders will likely study the monetary policies of central banks, political developments, and other fundamental elements to identify cyclical tendencies. Successful position traders may only execute a handful of deals per year. However, the profit targets for each of these trades are likely to be at least a couple hundred pips.
This trading method is designated for traders with greater patience, as their position may play out over weeks, months, or even years. On the weekly chart below, you can witness the dollar index (DXY) reversing its trend direction.
As a result of the massive monetary stimulus offered by the US Federal Reserve and the Trump administration to assist the struggling economy, a reversal has occurred. As a result, the amount of active dollars increases, reducing the dollar’s worth. Position traders may begin dumping the dollar in response to trillion-dollar stimulus measures.
So, would you mind if I show you some susscessful forex trading strategies? I guess, this might help you a lot. Let’s face it:
What profitable Forex traders do?
Successful Forex traders may have different trading styles and strategies, but they all have one thing in common: they believe strongly in doing something.
But what’s the point of view? And do you have to have them if you want to be a successful trader?
YES! If you really want to make a win-win situation out of your trading career, you have to do this.
Your mindset and attitude should be like these things.
Discipline
Stoicism
Pragmatic Expectations
Unbiased Mindset
Time Frame
Methodology
Market
Size Of Position
Trading is tricky and requires as much art as science to do well. Because of this, there is only a trade that makes money or a trade that loses money.
And trading can be fun if you use the best way to trade forex. And if there’s one thing that’s certain, it’s that you have to read the forex trading strategy pdf to get a clear picture of each forex trading strategy.
Now remember something.
The best way to do well at trading is to “point out the mistakes you made.”
George Soros is one of the most successful forex traders, and everyone knows his name. “I’m only rich because I know when I’m wrong,” said George.