Learn top 3 profitable forex trading strategies

Learn top 3 profitable forex trading strategies

Learn top 3 profitable forex trading strategies
Learn top 3 profitable forex trading strategies

Having an effective forex trading strategy is one of the most important prerequisites of trading for the trader to trade profitably in any forex market, whether it is the foreign exchange market, the stock market, the commodity market or even the cryptocurrency market, your adherence to the trading rules helps you achieve the highest profit, in Whereas, unorganized entries are a recipe for disaster and losses for sure.


Today on our blog vetkat ,through this article, we will shed light on what a profitable forex trading strategy is and why a trader needs it, using the means of illustration.

The main points of the topic:

  • What is a trading strategies?
  • How to pick forex strategies that work
  • Trading technical levels
  • Channel trading strategy
  • Moving Average Trading Strategy
  • What strategy do traders need

What is a trading strategies?

A forex trading strategy is basically a list that contains the steps a trader should take when making forex trades, it defines the conditions of the forex market under which a trade can be opened, it tells you the direction of the position, and where the trader should place the stop loss and take profit, usually Forex trading strategies stipulate the position size and what financial instruments a trader can use these trading strategies for.

So, why should a forex trader stick to these strategies? It is known that there are specific rules followed by the Forex market, where the price movement depends on the psychology of the main traders, and it also has its own types, this is what the rules of market price behavior depend on, which helps you to track the direction of Forex price movement, these patterns allow you to choose strategies Profitable trading, each of them presents a positive mathematical prediction for you, although forex trading can be both profitable and losing, however, your overall trading result will be black.

If each forex trading position is opened according to various rules and signals, this means that the trader is trading in a chaotic manner and his chances of making money in forex trading are close to zero.


How to pick forex strategies that work

When trying to learn how to trade forex, novice traders always ask about the best trading strategy for them to trade but there is always no right or definitive answer to this, since there are a lot of different forex trading strategies, while the only criterion that is used to distinguish between bad and good is Mathematical expectation If the outcome of the trades made by the trader according to the chosen forex trading strategy for three months or more remains positive, then it is safe to say that the forex strategy is working well, however, if the trader fails to make profits, he should consider switching the strategy Forex trading.

All forex trading strategies depend on one or several types of analysis, forex technical analysis, basic trading and the first indicator, this can be simple or complex, and has one or several rules for opening a trading position, a forex trading strategy can be as old as trading in The stock exchange itself, or the trader developed it on his own.

Where the forex trading strategies that people use to trade in the currency market differ in terms of the period of opening the position, it can be a long-term strategy, where the position is kept open for a period of up to a month or more, both in the medium and short term, day trading strategies and forex scalping strategies belongs to them too.

What is the trading strategy that best suits the needs of the trader?


The understanding, preferences and profitability of a forex trader are the factors that he must rely on when choosing forex trading strategies, the rules of which must be clear to him.

Choose strategies that align with your lifestyle and way of thinking:
Intraday forex trading strategies will succeed with those traders who spend the night worrying about the open position; It is known that medium-term trading is popular among forex traders who cannot spend much time in trading.

Speculative forex trading strategies allow for many daily forex trades to be made with periods of time that are so short that the trader does not have to devote much of his time to them; However, it requires high degrees of focus and accuracy and is very cumbersome.

Below we will explain forex trading strategies for beginners, so that they can master them and use them to make profits in the money market.

Trading technical levels

It is one of the forex trading strategies called support and resistance trading, and it is based on the rules of forex technical analysis mainly, and there are certain horizontal trading levels, and the price when it reaches them, either rebounds, or breaks their barrier and then starts moving to the next line, according to this strategy in Trading, prices move between strong levels, and the trader can open forex deals between them using the techniques of the breakout or bounce.

When a trader is trading with this profitable forex trading strategy, he needs to plot the price level from the monthly time frame to the one you are working on to the hourly time frame for example. , and the horizontal lines were built along the highs or lows of the charts, the shadows started to show a strong movement from them, the values ​​from which the price bounced up and down, as well as on the sideways trend price.

The rules for opening a position are quite clear:

  • When attaching the level to sulfur, the necklace can either bounce off it or break its barrier and keep moving down.
  • When we bounce off the oliwards, we are putting the long term liosition, the loss for lilace stoli behind the next false break, but with the lirofit next to the next resistance level, the reward-to-risk ratio should be 1:3, or at least 1: 2.
  • If the lirice breaks through the sulfur level and we fix it with the bounce as resistance, then we cut our short loss, cut the loss on stoli above the confirmed top and take the lirofit next to another level that is below.
forex trading strategies



Advantages

What makes this forex trading strategy attractive is the simplicity of its clear rules, if prices bounce off support, the trader starts buying, and when price bounces off resistance, the trader starts selling, when prices break the level, the trader opens a trade in the direction of price action.

Flaws

There are false breakouts and false confirmation levels in the market, and because of this, trades are closed with stop-loss orders, and you must gain the necessary experience to understand when waiting for a possible false breakout is logical, and when to re-enter even after the expulsion of stop-loss, and you have to re-enter once Others, because the center holds you a lot of promises in terms of making a profit.


Channel trading strategy

Technical analysis that states that the price is moving in the direction of the main trend, lies at the heart of these forex trading strategies.

Those channels can be bullish and bearish in the market, apart from that, prices usually move in a sideways direction which is a passage between two horizontal levels.

Channel Trading Rules:

1. When there is an uptrend, the trader buys only when the third retracement catches up with the price from the support line, the trader should place a stop loss order behind the previous lower bound of the channel, with the take profit being less than the resistance line.

2. Similarly, in the case of a downtrend, the trader only opens short positions, when prices bounce off the resistance line, the trader should place a stop loss order above the resistance line, with the take profit higher than the lower boundary of the trend.

3. In the case of a sideways trend, the trader is trading on a price bounce in both directions: buying with a target at the upper boundary, and selling at support when prices bounce off resistance.

forex trading strategies 1


Advantages

This trading strategy is simple and straightforward, which makes it an ideal strategy for novice traders.

Flaws

There are a few beautiful and technically correct channels that have formed on the charts, so the trader has to wait for a while until he hits an entry point. However, this problem can be addressed by linking the channel trading strategy to the level forex trading strategy explained earlier.

Moving average forex trading strategy


This is a trading strategy in which the moving average indicator is used, the indicator and its derivatives are used most of the time, and these forex trading strategies can be downloaded on any resource connected to online trading.

How do you trade it


The 12-period trader applies the simple moving average to the 15 million chart. This is the easiest option.
When prices cross the SMA line from bottom to top, the trader can open the long position.
If the trader sees that the price has crossed the SMA line from top to bottom, this means that he needs to sell.

forex trading strategies 2
forex trading strategies


Advantages

Novice traders will find the simplicity and clarity of this strategy as it allows them to take profits with their short term forex day trades.

Flaws

This forex trading strategy may generate some false signals, therefore, it is best to combine it with forex trading strategies based on technical analysis, to filter out any false entries.

What are the forex strategies that traders need


The process of choosing a forex trading strategy is simple but complex. Having a forex trading strategy is essential for a trader, but the strategy that a trader ultimately chooses depends on a lot of factors, and they are often very personal factors. In addition, you should test your trading system carefully and should It includes its own forex risk management indicators.

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