5 HUGELY Effective Forex Strategies of 2021 [Updated in January]by Kazi Tanzib Forex Trading Analyst
Before bringing up the top 5 forex trading strategies, let’s talk some rush. Traders are specifically talking about forex strategies, but they do not mention any word about how they did it. With forex strategy, there are 3 pillars that you have to know—
- Position sizing
- Risk management
- How to exit a trade
There really is no single answer when it comes to clarifying the best and most profitable Forex trading strategy. The best FX strategies will be suited to the individual. This means you need to consider your personality and work out the best Forex strategy to suit you. What may work very nicely for someone else may be a disaster for you.
So, here are some top choice for you that really work well in the forex community —
- Scalping — These are very short-lived trades, possibly held just for just a few minutes. A scalper seeks to quickly beat the bid/offer spread and skim just a few pips of profit before exiting and is considered one of the most advanced forex trading strategies out there. The strategy typically uses low time-frame charts such as those found in the Meta Trader 4 Supreme Edition package.
- Day trading — These are trades that are exited before the end of the day. This removes the chance of being adversely affected by large moves overnight. Day trading strategies are common among forex trading strategies for beginners. Trades may last only a few hours, and price bars on charts might typically set to one or two hours.
- Swing trading — Positions held for several days, whereby traders aim to profit from short-term price patterns. A swing trader might typically look at bars every half an hour or hour.
- Positional trading — Long-term trend following, seeking to maximize profit from major shifts in price. A long-term trader would typically look at the and of day charts. The best positional trading strategies require immense patience and discipline on the part of traders. It requires a good amount of knowledge regarding market fundamentals.
- Price Action Trading — Price action trading involves the study of historical prices to formulate technical trading strategies. Price action can be used as a stand-alone technique or in conjunction with an indicator. Fundamentals are seldom used; however, it is not unheard of incorporating economic events as a substantiating factor. Several other strategies fall within the price action bracket, as outlined above.
The Bottom Line
We all know forex trading platforms are globally the most popular platform for trading. But, in the long run, you have to be a statistic. Unless playing with strategies, you can’t bring profits from forex trading. Most of the traders fail in forex, lacks forex strategies. With strong strategies and also trading plans, one can go beyond imagination.
Created on Jan 27th 2021 01:45. Viewed 195 times.
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