Articles

Forex Trading Strategies That Can Suit You Best

by Dharmendra Singh Digital Expert

Many traders have been found wasting time on trading strategies that are not at par and best suiting. Go through the forex trading strategies that can save not only time, money and effort but also years of frustration. Before learning forex trading strategies, one must keep following questions in mind. Let’s delve in.

Question 1: Do you want to make income from trading or grow your wealth?

First, let’s get to know the meaning of both the terms income and wealth.

Income equals to making (x) dollars in a month, whereas wealth here refers to growing (x) percent in a year.

For Wealth:

If a trader wants to grow his/her wealth, he/she can afford to have fewer opportunities related to trading, resulting in higher trading timeframes and spending less time in front of the screen. For wealth, the forex strategies one can use are position or swing trading.

For Income:

If a trader is willing to make income from trading, he/she must look for more and more trading opportunities in a short span of time, resulting in lower trading timeframes and spending more time in front of the screen. For income, the forex strategies one can use are day trading, scalping, or short-term swing trading.

Question 2: How much time can be devoted by you for trading?

If you have not all the time to spend in front of your screen for trading then it’s better to not go with day trading or scalping. Instead, going with position or swing trading can prove worth.

On the other hand, if you have enough time, better enjoy short-term trading.

Question 3: Does forex trading strategy you opted for suits you?

Most trading strategies plunge into 1 out of 2 categories. They are:

  • A low win rate with a high return to risk
  • A high win rate with a low return to risk

So, now the question arises, which suits you best?

Well, in terms of success both the approaches can work. It all be determined by your winning rate as well as your risk to reward ratio.

So, it is recommended that go with the approach with which you are more comfortable. For those who want higher winning rate but smaller gains, then going with swing trading can prove fruitful. On the other hand, those who want lower winning rate but higher gains, then going with position trading is the best option.

If you have no idea of various trading strategies, it is advisable to access forex trading tutorials. Be it about learning position trading, swing trading, day trading, scalping or any other strategy, forex trading tutorials are a big help.

All in all, learn forex trading strategies with the help of online tutorials. For this, all you need to consider is:

  • Your trading goals
  • Your availability of time
  • And whether the strategy you go with fits you or not

 We wish you all success in forex trading!


Sponsor Ads


About Dharmendra Singh Advanced   Digital Expert

76 connections, 0 recommendations, 248 honor points.
Joined APSense since, February 10th, 2015, From Dehli, India.

Created on Feb 13th 2019 10:42. Viewed 547 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.