Trading in the Foreign Exchange market is full of mystiques. Experts believe that there is no such thing as the Holy Grail strategy or a single road to success. The simplest way would be to treat the FX market as an ocean and traders to be surfers. The degree of success depends on the proficiency and skills of an individual. Those with a positive attitude and a careful approach always end up being the front-runners. This is no different to that of FX traders. Newbies always ask – what did successful traders did to find Forex Day trading strategies that work consistently?
Honestly speaking, experts explain that other than a couple of things, these traders did nothing out of the ordinary.
1. They just had immense confidence in themselves and the knowledge gathered through extensive research of the market.
2. These traders followed a few simple but important aspects to squeeze out market profits.
Though the first criteria will eventually come the more one trades, the second aspect, i.e. – ‘important FX aspects of finding success’ is what is more of an intriguing. Here’s a look into those crucial aspects which make most day trading Forex strategies work.
Too Many Indicators can Ruin Your Profit Making Prospects:
FX trading doesn’t need to be difficult, but unfortunately, most add far too many indicators on their trading charts. This somewhat sabotages their profit procuring potentials! The common peril which they have to face consistently is confusion in info interpretation and hence missing out on lucrative opportunities.
It’s one common amateurish mistake. However, if one checks out the best Forex day trading strategies that work consistently over a fair length of time will find it pretty simple.
Example – Strategies based on Price Action where traders carry out trades on the readings of Demand and Supply.
While entering into Support or Resistance Zone, Prices tend to Slow Down:
There is no surprise to see the market momentum ‘Snails’ as it heads into the Support or Resistance Zone. It is something which usually does happen. The important aspect here is not to panic and start doing 100 things at once. One should rather analyze the degree of counter trading taking place on the low time-frame charts.
They should check if a pullback when trades are pulled back from their positions or will be continuing its dominant movement in the direction of the level. As this aspect is clear, traders should look to set their Stop Loss a few Pips before right before they aim for the crucial zones.
Those who do this usually end up with Forex day trading strategies that work on a consistent basic.
Never To Trade In The Week Running Up To X-Mas Or New Year:
Just being aware of the ‘Best’ trading times is not good enough to bring success. One should also be familiar with the time when they shouldn’t trade. The week leading up to X-Mas and New Year consists of new low volatility. The reason being the scarcity of participation!
Scalpers would still be able to eke out some profits during such times, but for Long-Term traders, it’s the time when they should hang their trading accounts.
These happen to be some of those crucial aspects successful trades regularly follow. For that reason, they have Forex Day trading strategies that work consistently. So, the lesson for newbies would be to keep them in mind too and trade FX with confidence.
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.