The best and the worst forex trading strategies

1. The best and the worst forex trading strategies To be part of the forex trading it is essential to have a strategy to trade, without it, you are adrift and you probably do not see results. Maintaining your discipline is a key aspect and this is only achieved through a good strategy. The traders use many forex strategies to get to the one that works and that takes time and patience. Of course, the fact that you have a trading strategy does not mean it is a good strategy, for that reason, below we present several of the best and worst forex trading strategies. This way you will know where you should stay and from where you should stay away. The best Forex trading strategies It is common that when people talk about Forex strategies, they dedicate themselves to talk about a specific negotiation method that erroneously is usually not more than a facet of a complete negotiation plan. Then, a good forex strategy that is advantageous and consistent is one that provides advantageous input signals. However, it is also necessary to consider the following aspects:    Size of position Risk Management Ways to exit a trade Of course, it is always important to keep in mind that in the Forex trading the best FX strategy will be the one that is most suitable for the trader. Which means that you must understand your personality as a trader and from this get the best Forex strategy that suits your needs since what may work well for someone else may not work for you, however, there are certain strategies that are usually basic and they help everyone.

2. So, there are several types of negotiation styles that we will break down below and have been widely used in previous years. 1. Forex 1-Hour Trading Strategy With this strategy, you can take advantage of the 60 minute time frame in the Forex trading. Here the currency pairs that are easiest to trade are the EUR / USD, GBP / USD, USD / JPY and also the AUD / USD. To apply it, you would need a 100 pips impulse indicator and also indicator arrows; both are available in MetaTrader 4. How to use this strategy to buy: This strategy can be used when the Momentum 100 pips indicator triggers a purchase signal and at that moment the blue line is ready to cross the red line from below. Then you must place the stop loss below the red indicator line. After that, you can close the trade after 30 pips. In the event that you want to sell, you can enter a short position at the time when conditions such as the 100 pips Momentum indicator trigger a sell signal just when your blue line crosses the red line from above and the arrows Indicators proceed to give a red arrow signal. You must place the stop loss just above the red indicator line and you must proceed to close the trade when the indicator arrows give a green arrow signal. 1. Forex Weekly Trading Strategy Although most forex traders prefer intraday trading, for the simple reason that market volatility usually offers more profit opportunities in narrower terms, however, it is a fact that weekly forex trading strategies They are able to provide more flexibility and stability. Then a weekly candelabrum can provide extensive market information. It also contains five daily candles and changes that reflect the real market trends. All weekly strategies are usually based on lower position sizes and thus avoid excessive risks. Now, to make use of this strategy, we resort to the use of the Exponential Mobile Average indicator. The last daily candlestick of the previous week has to close at a level above the value of the exponential moving average. Then we have to look for the moment in which the maximum level of the previous week is broken. Following this, we proceed to place a purchase order in the closed candlestick H4 and must be at the price level of the broken level. 1. London Hammer Trade The London Hammer Trade is an attempt to capitalize on some unique opportunities that are obtained from the additional volatility obtained when London is opened. This is especially effective during the London session since it can be used at any time when the price is likely to take off sharply in one direction and it is also possible to go back from a very strong support/resistance area. 1. Counter-Trend Forex Strategies Counter-trend strategies are based on the fact that most breakdowns do not tend to become long-term trends. Therefore, due to this, an operator that is in charge of using a strategy of this type has as objective to obtain an advantage of the tendency of prices to rebound both in the maximums and in the previously established minimums. These types of counter-trend strategies are usually the best forex trading strategies since they generate a lot of confidence due to their high index of success.

3. However, it is important to keep in mind that tight reins are needed on the risk management side. Worst forex trading strategies Just as there are strategies that can help us and become our lucky charm, there are also others that ultimately will lead to ruin or that in one way or another will make you lose a lot of money. You should always remember that not everything that shines is gold and if something sounds too good to be true, it is very likely that it is not true. Therefore, we will show you some bad trading strategies that you should not apply in forex trading. 1. Martingale This is a very famous strategy among newbies, and if you start trading forex you probably hear from it as soon as you start. This is a strategy only used by losers, inexperienced players and charlatans. The essence of this strategy is to pursue its losses by subsequently adding larger operations to its already losing position. 1. Scalping strategies that are targeting for 5 pips or less Yes, we already know that in the scalping you feel like a boss and an expert in trading. It’s all perfect, 2 pips here, 3 pips there and you feel so excited that you just feel like the dopamine increases and travels through your body. However, you should already know that you, as a trader, will be at a disadvantage and this is due to the spread. Let me explain you. When a 4 pip winner is hit, the market must immediately move 5 pips in order to cover the cost of its margin/commission. Then that differential is consuming 20% of its profit and amplifying its loss before the price has moved. This means that you would need to beat the market by a very large margin in order to be able to counteract the spread of each operation. I know it cannot seem like a big loss but this minimal statistical disadvantage for a while will make your account go into oblivion. 1. Strategies that try trade too many pairs You must understand that not all currency pairs behave in the same way. Each nation and therefore each currency has its own peculiarities, or that implies its own way of doing things and also its own way of spending and trading in its local currency. Then, more times than you can count, everyday decisions are made that will affect the movement of a particular currency and there is only one way to understand that and it is giving the necessary focus. There are many traders in the market, apply this strategy again and again despite having no result, and usually do so only out of boredom or desperation and desire for success. It is not advisable to trade several pairs at once, focus on one and study it properly. So when you get a currency pair that really works for you and you succeed with it, you can start thinking about expanding and adapting your strategy to other pairs that are of your interest.

4. Summary It is necessary to remember that what may work for someone may not work for you. However, when there are strategies that look good and have positive comments, they are worth trying. And if there is a strategy that seems to be a fraud and has aspects that do not quite convince you, it is best to stay away from them, to avoid bitter drinks and bad times, do not doubt your sixth sense and try to stay away from bad trading strategies. The best forex trading strategies are usually the simplest and most stable ones, which although they have a margin of error, are not usually exaggerated and are also usually recommended by successful and famous forex traders. Of course, the strategies to use should always be tested and see your error, so you can decide whether to completely change strategies or if you think you can make some changes that may be useful for you. Blog Source URl: https://cmsprime.com/the-best-and-the-worst-forex-trading-strategies/