How to achieve success in Forex? You need a proper strategy to take advantage of Forex trading. Searching for the right strategy over the Internet may take hours. If you are lucky enough, you will find what you need. Otherwise, searching may turn into a tiresome process.
The best solution is to test the leading strategies for yourself and see whether they actually work for you.
The Major Forex Trading Strategies
Thanks to the Forex strategies, you increase your chances of becoming a successful market player. Here, you will find the Forex trading strategies that have been proven to work by many traders.
- The Bladerunner Trade
This trending strategy is suitable for all timeframes and currency pairs. Its major specificity is based on the price action approach.
- Daily Fibonacci Pivot Trade
This strategy is used to be limited to daily pivots. Then, it has been extended to a longer timeline by combining Fibonacci retracements and extensions. Now, Fibonacci trade enables any number of pivots.
- Bolly Band Bounce Trade
This strategy is suitable for a ranging market. Being used in a combination with confirming signals, it can lead to excellent results. If you should really consider using Bollinger Bands strategy due to its perfect compatibility with stock exchange
- Forex Overlapping Fibonacci Trade
This strategy has become very popular among traders and investors. Being used in combination with appropriate confirming signals, it can guarantee an extremely accurate trading performance.
- The Pop ‘n’ Stop Trade
This strategy aims to chase the price, whether it goes up or down. As long as you know this trick, the Forex trading strategy will keep you informed about the market dynamics.
- Trading the Forex Fractal
This strategy can be used if you want to understand the pricing dynamics. You will get a good knowledge of market fundamentals, which will allow you to trade more effectively.
The Extra Forex Trading Strategies
Currency trading strategies are based on the method of trial and error. By trying out all the available options, you will see how each of them works for you. There are some additional strategies offered by some Forex brokers:
- Scalping in a nutshell
Scalping may seem a bit tiresome and time-consuming so that not every trader can use it properly. At some point, it may seem that scalping has nothing to do with Forex trading. But it actually works well! As a trader, you will explore the market a couple of time during the day in order to maximize your chances of a good profit.
Being a savvy scalper, you will make the whole process more frenetic. You will trade in the Forex markets one or two times per day to make a smaller but more stable profit.
If you want to benefit from the news releases, you should wait for the most significant ones. During the scalping process, you need to know the release times for GDP, unemployment figures and inflation rates.
- Positional trading – consistent Forex trading strategy
While scalping can help you master the currency market operations, it takes pretty much time and effort to achieve the desired result. During the scalping process, you have to spend hours in front of your PC. In case of positional trading, you can achieve extensive profits within a few hours a week. So how does this strategy work?
Positional trading is based on the principle of having your positions opened for a long-term use, so you can get involved into large market activities. Thus, you have to avoid high leverage and ignore the currency swaps.
Positional trading helps you learn Forex trading strategies, as well as test your emotional state. Traders and investors have to experience overwhelming stress from having their financial resources affected by short- and long-term actions. Moreover, they will have to overcome the urge to close their trade when losses are inevitable.
Thanks to positional trading, you have to dedicate your time to the market analysis and the prediction of potential market activities. At the same time, there is almost no time spent on the realization of your trading strategy.
Thus, when you have to pick up one of the Forex strategies, you should consider the desired pair you want to trade. Estimate the possible volume of your banking operations, check the swap and detect the best moment to process the trade. As soon as the right moment comes, you shouldn’t miss it!
The Bottom Line
There are more than enough Forex strategies, so it is hard to choose the most appropriate option. When it comes to Forex trading, there is always a way of trial and error to go through. To become a successful trader, you have to try every strategy before making the final decision.
On the way to success, don’t be afraid of experimenting, changing, and improving. Eventually, you will find the strategy that suits you the best!