Consistency is the main key in being a successful Forex trader. Unfortunately, it took me time to find out.
Even though each winning forex trading has its own general guidelines, always note that all these strategies are open to individual tweaking. One of the best ways of becoming a successful forex trader is being flexible. When a trader uses different methods in trading he or she tends to be more successful as well as for trader to customize trading strategies to suit his or her own personality and trading style. With this stated, always feel free to modify or tweak any of the parameters of these strategies to suit your own preference.
Here are the seven winning forex trading system to follow when trading;
1. TREND RIDING:
There is so much more involved in riding trends than simply closing your eyes and buying at any point during an uptrend or short-selling at any point during a downtrend. Most times it’s advisable for one to jump on trends when the trend is the most robust, rather than when it is about ending. When doing this, one can ride a trend with a higher chance of success.
2. DECREASED VOLATILITY BREAKOUT:
This strategy is almost similar to that of breakout trading strategy; this is so because in both cases the trader will be hoping for a successful price breakout. When using this strategy, you must know that it requires the forex market registers a period of relatively calm and low volatility before the strategy is to be implemented.
3. NEWS STRADDLING:
The forex market is extremely sensitive to the economic and geopolitical news from around the world, most especially the more industrialized or developed countries. News straddling is very important to forex trading because whenever a new piece of information comes up, it can basically change the trader’s perception towards the current and future situation relating to the outlook of certain currency pairs.
4. CARRY TRADE:
Here, the trader takes some sort of loan with an interest rate that is low. With this borrowed money, the trader invests in another asset that is likely to produce higher returns. That way, the trader will make some profit after paying off the debt.
5. BREAKOUT TRADING:
The breakout trading strategy works well when the market condition is either up trending or range-bound with price action approaching the upper end of the range. The key is to identify the resistance level and monitor the volume.
6. BREAKOUT FADING:
Many false breakouts occur in forex price charts, and the occurrence of these breakouts provides the perfect opportunity for fading breakouts, i.e. trading against those breakouts.
7. THE BLADERUNNER TRADE:
This is a good EMS crossover strategy that works really well across all time frames. It works well in a trending market environment and can be used to trade any currency pair at all.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.