Finding a single answer is difficult while trying to identify and explain an ideal Forex trading strategy. The FX strategies ought to match the specific needs of an individual trader. Being a trader, you will need to follow the nature of your personality and determine the right FX strategy.
While a particular trading strategy might do wonders for you might prove to be a complete disaster for you. Conversely, another trading strategy that has been discarded by others might just do the wonder for you.
You might need to experiment a few Forex trading strategies for discovering the more effective strategies for you. You need to eradicate the wrong strategy and determine the time-frame based on your style of trading.
You may check out a wide range of trading styles varying from short to long time frames. Many of the styles have stood the tests of time and remain popular in 2020. You will find them easily when you do your research on the best styles and strategies over the internet. Once you catch up with a few successful strategies, it will become easier for you to identify the right style depending on the latest market conditions.
Most Forex Traders Are Aware of the Trading Styles Adopted by Fellow Traders:
Day Trading – As the name signifies, the trades of this type are exited before the day ends. It eradicates the risk of bigger moves leaving an adverse effect overnight. For rookie traders, the ideal forex trading strategies seem to be the day-trading strategies.
While the trades may continue for up to a few hours, the price limits depicted in charts might be set to a couple of minutes. A very effective day-trading strategy seems to be the FX strategy of 50-pips per day.
Scalping – Tick charts that you mostly come across in MetaTrader4 are used in this strategy. You may check out a few good ways for trading the currency pair. However, it doesn’t mean that all systems are good enough for you to jump in. Lower time-frame trading may cause you to lose money while trading, especially when you are a new trader.
You will end up participating in high-risk trading while doing your technical analysis in some lower time frame. False trading signals are the frequent outcomes of a lower time-frame. Filtering such forex signals seems to be an uphill task for the new traders. You will acquire expertise over some time and that will also enable you to master the true art of trading with a lower time-frame.
Positional Trading – It is about following long-term trends and looking to gain profit out of strong price-shifts. The charts at the end of the day mostly seem attractive to the long-term trader. The traders ought to exercise discipline and have the patience for adopting an effective positional trading strategy. It requires you to acquire much knowledge on the market fundamentals.
The trading strategies that are deemed established and simple are known to be the ideal forex trading strategies for beginners. Most forex traders have attempted these strategies at some point in time. The trial and error method should enable traders to acquire new FX trading strategies that match their specific styles.