The best Forex trading strategies

The Forex market is a 24-hour financial market that trades currencies. Currency trading on the spot and outright basis make it one of the most liquid markets in the world. This means you can enter and exit deals quickly, within hours if necessary.

 

In this article, we will look at some of the best forex trading strategies out there for beginners and advanced traders. The list we compiled contains our opinion on what works and includes others’ experiences and feedback.

Going Against the Crowd

Many new traders fail to realise that the majority doesn't always win when it comes to forex trading, even though that is usually the case. If you want to be a successful trader, you will probably have to do things differently than most other traders on the market.

 

What does it mean? You need to determine what works and what doesn't by analysing your trades or someone else's experience and making your move based on that information. Since Forex trading can be a highly volatile and risky business, this strategy is not for everybody. Still, it might work if you're willing to take risks and analyse everything before opening a position.

Scalping

Scalping is a very popular and easy-to-follow forex trading strategy that generates good profits in the shortest time possible. It can be highly profitable for those who keep their cool under pressure and manage to focus on the profit they're trying to acquire.

 

Start trading with small amounts of money until you get the hang of things. Don't overtrade; many people who use this strategy fail to realise that scalping can be extremely time-consuming. Also, try to limit yourself to only 3 or 4 trades per day. - Keep your head cool, and don't get greedy. When you're in the green, it's time to close the deal. If you're making profits on every trade, why would you endanger them?

Forex Range Trading Strategy

Many traders are attracted by significant financial gains they can acquire by long-term trading, but they fail to realise how dangerous it is, especially for beginners. Yes, some people make tons of money following this forex trading strategy, but most often than not, those are people who have been in the game for years and know what they're doing. If you don't, you might end up like most of the other traders out there - broke.

 

Forex range trading strategy is not entirely useless; in fact, it can be beneficial, especially if you manage to gather some experience under your belt.

Forex News Trading Strategy

Forex news trading strategy involves access to economic calendars that are filled with numerous special events each day. It's a fantastic way to boost your profits, but only if you get familiar with the calendar data quickly because otherwise, it will turn into a nightmare pretty fast.

 

Here are some simple tips when it comes to news trading strategy. Start with easier-to-trade events, such as US Nonfarm Payrolls, National Employment Report, or Canadian Retail Sales. Never trade on your own unless you have a lot of experience using economic calendars and can quickly react to changing market conditions. Remember that each online broker is different, so you need to adjust your strategies accordingly to be successful.

Forex Trend Following Strategy

Trend following strategy is one of the most popular forex trading strategies out there mainly because it requires no indicator usage whatsoever, which means it's easy to follow for beginners who are just starting to use forex trading robots.

EMA Crossover Strategy

EMA crossover strategy can be used when you trade currencies, commodities, or stocks; in fact, it’s a great strategy to have in your arsenal since it can significantly increase your profits.

Finally

The majority of traders lose money, while only a few achieve financial freedom.  It takes determination and discipline. Perform extensive research about forex strategies used by more experienced traders, and visit the site of Saxo Bank with the most reputable online brokers. Try one of their demo accounts before you start trading and learn the ropes from the best.