As a beginner or not so beginner in the forex world, you may be looking for the best Forex trading strategies. We are going to save you time by telling you that they doesn’t exist!
To create a forex trading strategy, the first thing you must determine is your profile as an investor and answer the question: Do you take risks or run away from them? And based on your answer, determine the strategies (it’s never just one) that can work, and pay attention to my words: “can”.
This is because according to your attitude and aptitude toward the question, what may work for your friend might not work for you, as well as what doesn’t work for your friend, may be great for you.
The best trading tool is training, and this is free on the WEB and if you want to delve into it, it’s worth paying for a course with good traders you can find on the WEB.
What are forex trading strategies?
Foreign exchange investors use tools that help them in buying and selling using strategic signals, which can be given by a human being or a program or a trading robot.
If you use a program or a robot you must always keep in mind the human side; the machines or programs are logical and sometimes, intuition is needed, an intuition which will increase according to your interest in the subject. The software or robot will only serve you to process large amounts of information quickly.
What strategies are there for trading?
Tendency: Sometimes the market “breaks out of range” to start a new trend.
Let us understand this event: When the market “breaks” and moves to new minimums there will be investors who will be waiting for these new minimums and others who will despair and sell until there is no more to sell and confidence is restored, and this is where intuition and tracking systems are needed (a matter that is easy to deduce using a program or robot).
Trend tracking systems require a more trader than investor mentality, which is not easy to accept. Nevertheless, in a non-volatile market, this is one of the best forex trading strategies.
- Against trend or Lateral: This is based on the fact that breaks are not always long-term and if we analyze the same graph above, we see that constant monitoring is an excellent idea.
But you cannot fail to keep into account that the market can change its status, and as you don’t know when and how it will change its status, you should look for evidence of the current state and possible immediate state.
What should you keep in mind in Forex Trading Strategies?
The first thing is to be sure of the risk to take and if you are going to accept it.
Search for a good analysis tool or a good company, just like FxMAC that canoffer you Forex trading services.
Be clear about the trends of at least 300 days, even when you use only 25 days of analysis (this helps intuition in the long run).
Be well informed of market supports and resistances, very important concepts when determining price patterns. And with a little basic mathematical knowledge, this can be extracted from the graphs of the tool (s) we use with a little analysis.
Profitable supports and resistances
Support is the tendency to rise from a previous minimum and resistance is the tendency to fall from previous maximums and this is due to the judgment made by the participants of the current price based on previous maximums and minimums.
You must bear this in mind since the judgment of each one of the participants is what moves the market.
Among the forex trading strategies, there is a basic point, and this is the knowledge of simple mathematics and good intuitive commercial level, these 2 foundations almost guarantee you the success. But the tools of analysis and your daily follow-up on what you want to invest are almost mandatory to achieve that success.
In FxMAC we know how difficult is to have all that knowledge about forex trading strategies, and moreover to have the needed intuition. That’s why we have specialized in Forex managed account, in order to give all the investors the possibility to invest in the currency market with the minimum risk.
If you want more information about Forex managed accounts do not hesitate to contact with us.