Trading currencies is a risky venture. But it also offers numerous rewarding opportunities. The up trends and down trends of prices for your chosen currency pair can either lead you too huge profits or devastating losses. This is one of the major reasons why traders prefer advanced forex strategies to help them trade properly, countering even adverse market scenarios.
A look into some of these strategies!
1. Bollinger Band Trading:
Bollinger Band Trading is a mechanism which helps you decide the relative width of its band along its price line of your currency pair. This ensures that you trade within the relative width of this band. You use higher levels of its band to spot high prices. Contrarily you use its lower band for lower price line.
Its lower and lower band acts as a price target for traders to enter or exit their trade. These are indicated by movement of price line in correlation with these upper and lower Bollinger Bands. Many use it for formulating advanced forex trading strategies. And you should do the same as well.
2. Using advanced forex strategy of Scalping will benefit you:
Scalping is a forex advanced strategy as it can be used by you even if you are a small time trader or retail traders, you will benefit immensely. In scalping every minute changes in price line make way for proper profitable investments.
Changes in price line focus upon a smaller time frame so expecting a dynamic change is not smart. So you mostly go after the minute ups and downs in the price line. To ensure a higher profit while using scalping, traders should invest a higher amount for the short period of time. This is another one of those advanced forex strategies, a day trader can make use of.
3. Use Positional Trading for your long term success:
Advanced forex trading strategy for long term investors is the use of Positional Trading. In this strategy the amount of investment is small but held for a longer period of time.
Most of the transactions entered into by the traders in the forex market is by day traders. But if you choose the Positional Strategy then you should have a good grasp on the economic and financial conditions of those currencies you are trading with. There is no exact entry or exit triggers for the traders as they all depend on their inherent knowledge of the trade.
4. Hedging - The most frequently used forex strategy:
You can use hedging strategies to turn your luck around. You cover your long position by investing your assets short in another currency pair. You should do this to ensure that in case of any unpredictable event which might result in a loss from your long position which are covered with gains from your short position.
One point to consider here is there is nothing like the best advanced forex strategies. It depends on the convenience of traders and the way they want to go about trading. One advice would be to make use of demo accounts and test out these mentionable strategies and pick one which abides their trading psychology.
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.