When you are an active forex trader, you are bound to have a collection of different strategies and techniques in your trading arsenal. From what seasoned professional traders have in their arsenal, we bring to you, the best forex trading strategies revealed.
The strategies mentioned in this article are not in any way going to make you rich over night. They need to be studied and understood from a unique point of view before it can start to work on the level of awesome. This is to say that traders should be patient and put in all they can in the course of learning how to trade the forex market with these strategies.
Also note that it is highly recommended to try them out in a demo trading account before making any real financial commitments based on any strategy. They may have worked perfectly well for others, but who knows, one or two of them may not work well for you.
THE BIG REVEAL:
Here are some of the strategies revealed by experts as the way to go
1. SIMPLE FOREX TRADING STRATEGIES FOR BEGINNERS:
Beginners do not need any complex trading system. The big reveal for traders in this category is to go for basic forex strategies. The conditions and rules in this case are really simple and easy to understand and execute when you are trading. There are a lot of them out there, and traders can even develop one for themselves. Some of them include
- Parabolic SAR strategy
- Displaced moving average strategy
- 30 pips a day forex strategy
These are really simple enough for any beginner to start with.
2. FOREX PRICE ACTION TRADING STRATEGIES:
Strategies classified under this are ones based on price action. Following the price movement of currency pairs of interest can guide one on how to trade profitably. Some of them are
- Support and resistance strategy
- Inside and outside bar strategies
- Trend line strategy
These strategies are ideal for traders that have been in the forex market for a while.
3. FOREX SCALPING SYSTEMS:
These strategies are required to trade in a much lower timeframes, as low as a minute or even less. Examples of such strategies are
- 5 minutes forex scalping with Bollinger bands
- Pin bars and trend line
- Stochastic oscillator
Traders that are not conversant with fast trading and high attention demand may have to be careful as to what scalping system to trade with.
- Forex correlation system
- Bollinger band
- 30 minutes ATR breakout
- Candlesticks and chart patterns
- Swing trading
- Day trading
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.