Trading Strategy

5 Types Of Forex Trading Strategies That Work

There are many different variety of strategies and techniques that can help the one determine the best entry level and the exit points on the timely basis. The market analysis and traders are constantly innovating upon the strategies to devise these methods to make sure that they have better understanding of the currency market movements.

Position Trading

This is one of the long term trading approach where you can hold trades for weeks together. There are many fundamental analysis in your trading which you have to make sure that you have a bias towards. As these trades are for long term they do not require a lot of time. This one reason why this can be a little less stressful even when there is price fluctuation. This requires you to have a firm understanding of fundamentals which help you understand a wide loss. It is a common that you might not even make profits every year.

Swing Trading

Swing Trading

This is medium term trading strategy where you can hold the trades for weeks and then when the trader reaches a swing you can capture a single move. To being a swing trader you do not have to spend a lot of time in it. It is possible that you can also receive more trading opportunities. One of the main con is that there is an overnight risk that come up with this kind of trading.

Day Trading

This is a short term trading strategy where you are holding the trades for few minutes or hours. This is one of the most volatile as this is an instrument of making instant money . If you are having a good year you can be sure that you will find ways to make money and there is no over night risks which accompanies you in your positions. It can be stressful where you will have to watch the markets constantly. If you have a massive spillage you can easily loose everything.

Scalping

Scalping

Scalping is a very short term strategy where you can hold trades for minutes. The main concern here is to know what market is doing now and the ways you can take advantage of the situation. The main tool here is the order flow. This is one way traders can easily trade in with a lot of opportunities and can make a healthy income out of it. It has high financial cost and you might have to stay in front of the TV for long.

Transition Trading

This is one of the ideal trade which can operate in lower frame time. This increases your target profit and the trail can loss on higher timeframe. You can get insane rewards when compared to the risks and can significantly lower the risk as you enter in lower timeframe.

Auto Trading

Another popular option these days is to trade on crypto currencies with auto trading robots such as Bitcoin Trader or Bitcoin Revolution.

 

Leave a Comment

Your email address will not be published. Required fields are marked *