As a new trader, if you feel that you have lost too much and everything you heard about foreign exchange trading was a sham, don’t lose hope! Things will get better with some knowledge and more perseverance.
You can find your best Forex trading system any day if you keep trading and learning diligently. Here, you can find some useful strategies that are elaborated to make your search a little easier.
The Simple and Effective Breakout Strategy
To master this trade using the best Forex systems need practice and patience. However, once a trader gets better at this, making quick large profits become an easy ordeal. But how do traders get it right?
Trading during a tight range of price movement is pivotal. Price action breakouts happen mostly after this phase of movement.
Breakouts are easy to track during days with big news announcements. Dealers can plan accordingly and ride the breakout wave to huge profits.
Often many traders become chasers of breakouts than riders. Traders can easily prevent this by waiting for candlestick tails moving down beyond the support lines. This is generally an indication that a breakout maybe closes by.
Keep in Mind:
While some traders consider it one of the best Forex trading systems because of its high profitability, if not followed properly, it could lead to significant losses. Often traders miss the wave and end up chasing it while it plummets deep down.
MACD Stochastic Forex Trading Strategies
In this MT4 platform strategy, traders need two different indicators. The MACD and the stochastic lines; the former is mostly a filter for the wrong buying and selling signals while the stochastic is the one of actual consequence.
Traders can use this strategy with any currency pair in time frames lasting more than an hour.
Considered as one of the best Forex systems by many traders because of its simplicity, here are the buy rules that need to be followed.
When MACD is above the 0.0 level, traders can expect a coming uptrend.
Stochastic must move over the oversold region which is around the level 20 line.
This is the best time to place a buy order in this strategy. Traders can also put a stop loss at 2 to 5 pips below the candlestick low to hedge their investment.
A different set of selling rules must be followed:
MACD line should be observed below level 0.0.
An overbought stochastic line must cross over the 80 line.
Stop loss should be placed 2 to 5 pips above the candlestick. However, if it feels too narrow to the entry price, then place stop loss 2 pips above the closest swing high.
A 1:2 take profit target is sufficient for this strategy.
If you are looking for the best Forex trading system, looking further into these two strategies is a good idea. Also, make sure that before trading, you should learn more about the strategy you decide to use for your foreign exchange trading purpose.
With daily trading practice and learning, profits are not far away!
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.