Best Trading strategies Forex 2021

1. Best Trading strategies Forex2021 Forex is one of the most volatile and liquid markets in all the markets. The market is responsible for more than six trillion dollars traded in deliverables every day. There is plenty for everyone in the forex market. We will be learning about best trading strategies forex and make money using the differentstrategies. Almost everyone does trading in the forex market; they just know it or have not noticed. When people travel to different countries, they have to exchange their currencies with the onesprevalent in their own countries. The base to charge the money is the exchange rate. With the help of that, the travellers make their way into a differentcountry. Whenbusinessisassociatedwiththisideaofexchange,moneycomesin.Traderstradeindifferent lot sizes to make money. There are primarily three sizes that are prevalent in forex trading—standard micro and mini. For everylot,theprofit iscalculatedinpipsandpipsaredirectlyrelatedtothefactthathowmuchthe concerned pairs aremoving.

2. The fact that there are instruments like leverage present in the market, there are rare chances that the traders do not make money init. Lets learn about about leverage in detailbelow: Leverage is the borrowed money from the broker. Just like while shorting, the traders have tobuy back the shares that they bought from the broker. While using leverage, the traders have to pay back the money to the broker that they asked. This Is how itworks. When the traders exercise leverage, they ask the broker to help them enter the otherwise inaccessible position due to the constraints of their personal capital invested. The broker then allowsthemtoenteralargermarket.Thecatchhereisthatwherethetradegoeswrong,thetraders have to pay back the amount of money that the position was worth, not the one used to enter that position. Understand it thisway: Ifthetraderexercisesleverageof1:50,heorsheisenteringthetradeworth $50withjust$1.That can happen with $10 as well, and the traders can enter the trade worth $500. When they enter that position and when they lose it, the amount payable is $500, not$9. Ifthetradegoesright,theneverythingiswellandgood.Leverageisoneofthemostused instruments in forex trading and can also be called the zero level of trading strategies forex. Every trading strategy you read from here on can generate better results with the help of the correct and calculated use ofleverage. Now let us read about the best tradingstrategies forex: Scalping: prominent forex tradingstrategy The traders who prefer small but a lot of results in positive sense should opt for scalping as the preferred tradingstrategy, As the snake suggests, Scalping is mostly about scraping each and every bit of profit that can be made from an asset. The best profit is made in the shortest duration of time in terms of entry and exit.

3. Themoreyouhold,themorechancesofmakingmoneythere.Butifyouenterandexitverysoon., probably in minutes and even seconds sometimes, the profit potential increases with the decrease intheholdingtime.Sincethetradesareheldforasmallerduration,numeroustradescanbemade. An increased number of trades with a lesser potential of profit can be the best for traders who are looking to trade in the shortterm. Day Trading: one of the most sought after trading strategiesforex If you are not comfortable with the scalpers’ speed executing their trades, the day trade will suit youbetter.Thetradesaremade,andthepositionsexitedonthesametradingday.Thatiswhatday tradingisallabout.Thetradersbuydifferentstocksandthensellthembeforethedayends;ifthey want to hold the stocks for one or more days while they trade intraday, then they have to pay an overnight swap fee. That money should not concern you thatmuch. Day trading in forex is also quite possible in fact; each pair has a different volatileperiod throughout the day where it can generate the best results. For example, the USD JPY pair can be traded for a good result during 1200-1500 GMThours. Day trading needs ample research and a proper window to execute thetrades. Italsoneedsagoodunderstandingofhowwelltheeconomyisgoingonandhowtherecentevents turn good or bad for you. If any big news is about to hit the market, it can affect your positions that day. The idea behind this trading is that the value of the investment will grow over the long run. These are two basic strategies for forex trading. Now let us look at some better forex trading strategies. Bouncestrategy: Many traders believe that the price levels that were important in the future will also be significant inthefuture.Thereasonbehindthebeliefissimplelogicthatifthemarketdropstoacertainlevel and then bounces back, that makes it a good support level for buying. If the forex pair falls down to a specific level, then that could create a good trading opportunity for forextraders. Running out ofsteam: This is very similar to the times when the traders analyse the support levels. The forex traders are alsousedtotestingtheresistancelevels.Thatisapointwhenthemarketcamebackfromits

4. previous peak, and then it just rallied down; if the market is in an uptrend and suddenly begins dropping, The market psyche is that the buy price is becoming too much foreveryone. The idea here is to find the forex pair that has just been to this point. This can be located near the previous highs and lows. The traders look for such pairs and short-sell them in hopes of earning profits when they buy back the same pair as the prices reach where theydesire. All these strategies that are based on the highs and lows of the chart, they can makerisk managementprettyeasyandstraight;forexample.,ifthetradersarelookingforabounceofflevel, Thenthestoplosscan golowerthanthepreviouspointiftheyarelookingtoevenshortsellthem. Then too, a lot of traders will sue the previous high as a point for their stoploss. BreakoutTrading: Breakout is one of the most talked-about almonds and also one of the most used trading strategies forex in the market. Breakout tradingis done at a point of a breakout. Breakout is when the price suddenlyreversesback,clearlyopposingatrendandthentheoppositetrendbegins.Thisisapoint when the traders have to decide whether they have to be long or short. Even the decision needs a lot of care to execute. This is also because of the fact that there are a lot of different events that mimic the breakout and if the traders make their trading decisions thinking that this is a breakout and it simply is amarket correction, then the money is for sure bound tofall. This Strategy can be used to ride the wave of hype that a particular trend is about to create.When thathypeiscompleted,everyoneisforsureabouttorideit,butwhatisbetterthanscrapingprofits before everyone else and a lot of bigger and betternumbers? Oversold and overbought: All the trading strategies forex discussed until now are based on charts and chart patterns, plus the optimal and correct use of support and resistance levels. This one uses math as its base of logic. A term called the RSI (relative strength index). RSI is something that belongs to the oscillators o]pool of tradingtools. When the RSI crosses the 70% level, the market is thought to beoverbought. This is also the time when the traders will react to the news and begin selling their positions, and as a result, the market is again even after a point oftime.

5. Oversold is the point when the RSI goes below 30%. The traders need to watch this very closely, and as soon as the market turns up again, they should make the buycalls. Continue Reading……………