Top 10 Forex Trading Strategies-converted

1. Top 10 Forex TradingStrategies There are so many forex trading strategies that you can apply while trading in the Foreign Exchangemarket.ThetradersgaineasyaccessibilitytotheglobalForexmarketduetotheinternet and technological advancements. You can trade the currency against other currencies through various online Forex brokers around the globe. The one thing you need to keep in mind is that the Forex trading strategies you may follow can be profitable and risky according to your trade size and risk appetite. Thestrategiescanbebothtechnicalandfundamentalforforextrading.However,trading without Forex trading strategiesor the wrong approach can cost you a lot of money. Therefore, before investing your hard-earned capital in currency pairs, you should focus on the right strategy to eliminate unnecessary potentiallosses.

2. What is a Forex tradingstrategy? A strategy that forex traders use to identify the entry and exit points to trade the currency pairs is called a forex trading strategy. Forex trading strategies include both technical and fundamental analysis. To balance out your profits and losses, you need to apply trading strategiesproperly. A good trading strategy can help you manage risks and is loaded with trading signals that help to make buy or sell decisions at the right moment. Of course, you may develop your own strategy or follow the existing strategies. But remember that the whole idea behind the application of forex trading strategies is to determine the right time to open or close your tradingposition. You can copy trade also if you are a beginner. Both novice traders and seasoned traders candrive through their trading journey with the vehicle of specific strategies. So here we are discussing the top 10 forex trading strategies to uplevel your trading knowledge andskills. 10 Successful Forex tradingstrategies These trading strategies will help you to get your hands in the forex market efficiently. Traders must select a suitable strategy according to their understanding and comfort. Forex trading strategies depend on many factors such as trade volume, market signals, news, traders’ sentiment, etc. The strategies are Positiontrading In position trading, traders hold their positions for a long time. The period can be several weeks, monthsorevenyears.Traderswhobelieveinlong-terminvestinggenerallyusethisstrategy.This strategyisfocusedonvariousfundamentalfactors,whileyoucanalsousetechnicalindicatorslike Elliott wave theory. While predicting trade ideas, it is essential to understand the impact of economic indicators on markets. Position trading is well-known for its highly positive risk to reward ratio. However, the strategy requires so much patience and the right skills to identify favourable long-termtrends. Technical analysismayberequiredtodeterminecorrectentryorexitpoints.Onlong-termtrading charts, you can have a comprehensive view of the market. They give you the essentialinformation aboutthetrade.Theinformationcanbeassociatedwiththelengthofthetrade,time,pricepatterns etc. Traders mostly use inside day patterns and pullback patterns for positiontrading.

3. Price actiontrading Thorough research on previous price patterns and using them to predict the current entry and exit points is the part of price action strategy. Typically, traders use price action trading to construct various technical strategies for trading. Therefore, one should focus on the price action to successfully conduct the market analysis and minimise the number ofrisks. Priceactiontradingcanbeshort,mediumorlongterm.Tradersappreciatepriceactionstrategy worldwide because it allows them to use multiple time frames suitable for them. In addition,using a price action strategy, you can figure out your own way to enlarge the probability of higher returns. Priceactionstrategyalsoincludespositiontrading,daytrading,scalping,swingtrading,range trading, and trend trading. So you may call price action strategy the mother of strategies. In addition,thereisawiderangeoftechnicalindicatorstodeterminetheentryorexitpointscovering oscillators, candlestick charts, Fibonacci retracements andmore. Doubletopreversaltradingpatternisalso apartofpriceactiontrading.Thedoubletopstrategyis known for constant price swings on the pricechart. Daytrading Day trading is a form of short-term trading. Before the end of the trading day, you have to square off your position in day trading. You can open your position only for seconds, minutes or few hours before the market closes. In day trading, most traders use stop orders to avoid the overnight position. Forextraderswhowanttogenerateregularincomefromcurrencytradingandhaveenoughtime toanalysethemarketandmonitorthetradesthroughouttheday,forexdaytradingisbestforthem. On top of that, you may also believe that it is easier to take advantage of small price fluctuations instead of long-term investing. Therefore, day trading can be a good source of income for such traders. Day traders heavily rely on technical indicators to analyse their trades. By understanding market patterns, you can build a strong portfolio. Day traders use various patterns such as the 2 Doji candlesticks, double red pattern, breakout strategyetc.

4. Scalping Scalpingis the process of earning profit through small price movements. Traders tend to place many small bets to accumulate enormous profits. This technique requires patience enough and a stable mind as there are many risks subjected to this process. Scalpers conduct this strategy to eliminate the risk of an overnight position. There are a lot of technical indicators used by scalpers, including stochastic indicatorsand exponential moving averages (EMA). Scalping requires skills to analyse the price pattern in short timeframes. You have to work hours to master the skills as scalpers generate their regular income through this trading style. They do not have time to focus on other full-timejobs. Oneofthemostsignificantadvantagesofscalpingisthatyoudonotrequirefundamentstomonitor your trade as they don’t play an essential role in such a shorttime. Itwillhelpifyoutradeatatimeofhightradevolumeasyoumightgethigherspreadsandslippage, reducingyourprofits.Additionally,keepaneyeonaneconomiccalendarandnoteessentialmarket news since these can cause significant price swings in short time frames.