Buy forex strategies

Buy and sell forex strategy is one of the many strategies in the forex market that can be used to trade currency pairs. It works by making small trades; buying when prices are favorable and selling when there is an opportunity to make profit. It can be conveniently employed by a trader who has much time on his or her hand and it can guarantee fairly consistent profits.

In the forex market we consider money as a commodity; that is something that can be bought or sold. This simply means that like every other item sold in the open market, money is acquired and dispensed off in obedience to the market forces. This means that when the price is low, a particular currency is bought and when it price goes higher, it is sold. The person, whose job is to do this with the hope of earning profit, is the forex trader. You can only do this with a pair of currency at a time, for example the US Dollars and the Japanese Yen. The buy and sell strategy in forex trading is simply this buying at a low price with the aim of selling at a higher price. The strategy is great especially with much time in the hands of the trader to constantly check the market for better prices because the market is so fluid that a minute can change everything, but there is software that can take over the trade and make it twenty four hours even when the trader is sleeping. The key is to find a way to buy low and sell high. This is not so easy to work out in practice but there is no way to get better except through practice. Also there are many tools to help the trader read the market better and find sigs that indicate better time to buy and also signs that show that it’s time to sell.

HOW THE STRATEGY WORKS

ENTRY RULES

There important prerequisites to consider before this strategy can work for you. These conditions must exist before entry into the market at any point in order to trade using this strategy.

1.    The EMAS custom indicator. This must be colored green to show that the price is being pushed upwards.

2.    The four average custom indicator. These should all point upward and be clearly lime colored.

STOP LOSS

Place a stop loss approximately 10-15 pips below the entry price.

EXIT STRATEGY

There are some rules which should determined when to exit the trade when using this strategy, they include;

1.    Watch out to see when the four average indicators have a red arrow pointing downwards.

2.    2. If the EMAS forms short orange bars it is time to exit.

There are many ways a trader can limit his loses and avoid being lost in the market, these serve as road signs to guide the trader through the road of forex trade. No specific one is the best, but one can add and remove.

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.

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