Forex trading strategies
For successful trading it is necessary to build a correct Forex strategy. Sometimes traders just focus on the ready-made ones and make their own. Some people download paid strategies. There are strategies that are based on fundamental analysis, technical analysis or simple price patterns. To be fully successful, it is necessary to study what they are based on. This is the difficulty of working with different strategies.
Novice traders, when coming to the Forex market, understand that they are only suitable for beginners’ Forex strategies so far. But which ones are intended for beginners, and which ones will only be coped with by a professional? There is, for example, a strategy for trading on trend lines, a strategy for Fisher, a strategy for trading Sidus for Forex, and this is far from being a complete list.
This time a trader understands that he needs to choose the best strategies to trade with, but the most important thing is to make him comfortable working with them. Which trading strategies should be used depends directly on the trader’s psychology.
Some traders do not believe that simple trading strategies can bring good money. Those who choose simple algorithms for their trading, which take a minimum amount of time, can soon switch to more labor-intensive trading schemes and earn much more. Besides, it is really easier for someone to sit and watch the indicators 24 hours a day than to spend 5-10 minutes on it – the trader is interested in market changes. But before the trader comes to such conclusions, he can go through the options for a long time. Profitable trading strategies are sometimes described in various forums by traders who have already traded with them and made good profits.
Bottom are several trade strategy classifications.
- Short-term (all positions are closed during the day)
- Medium-term (positions are closed after a few days)
- Long-term (positions held for more than a week or so).
- Conservative strategies (minimum risk)
- Moderate strategies (medium risk);
- Aggressive strategies (high risk).
- With different graphical models;
- Based on moving averages;
- On Japanese candlesticks;
- On Bollinger lanes;
- On Fibonacci levels;
- Based on other indicators.
Based on trade volume:
- Based on Martingeyle methodology;
- Without increasing the lot.
Based on the trading method:
- Manual strategies (all trading is performed by a trader);
- Semi-automatic (trader combines automatic and manual trading)
- Automatic strategies (trading is monitored by an Expert Advisor).
After considering the whole classification, a trader has a question: what to choose from?
In order not to get into trouble, many of the “gurus” of trading still advise to look for video of the traders’ trade on the chosen strategy. Thus, it will be several times easier to find the answer to the question with the choice.
At the same time, there is a very big difference in the choice between the behavior of beginners and experienced speculators. Beginners are more likely to use a long-term or medium-term trading strategy, while experienced traders, on the contrary, are more likely to choose short term trading. In short-term trading, the risks of both emotional unrestraint and a sharp trend reversal are much higher. And beginners, who have chosen a long trading system, will be able to trade in a calm mode and protect themselves from premature closing or opening a position.
Because of the same risks, a conservative, win-win tactic will work for the newcomers. Those who trade using the Martingale or Flat method from the very beginning will not achieve financial independence.
To get a good profit you need to work in manual or semi-automatic mode, but it’s better to exclude automatics at the beginning of your way.
After the trader has dealt with these questions, he will have the following: how long does it take to trade this way? The answers here are already subjective. Somebody needs two months, somebody a year. The main indicator is a stable income for some time. Only in this case it is necessary to apply variants for the advanced trader.
There are a lot of win-win trading strategies that both experienced traders and beginners use with equal success. This can include a channel Forex strategy or a Forex Return strategy.
But, of course, all traders recommend starting with simple trading strategies to gradually approach financial stability.