Everyone feels the kick to earn some easy money that will make their lives effortless. One such mode is through Forex trading. However, for most people, it remains a dream yet to be fulfilled, considering the fluctuations in this highly volatile currency market. Well, all of this could change if people knew about these most profitable Forex trading strategies.
Before getting into the best ideas of trading Forex, take a quick look as to why people are running behind this trading facet.
Forex is a high leverage, 24x7, foreign exchange currency pair trading platform. The fact that intrigues most people is the high leverage part.
Leverage is basically the odds against which a trade is stacked. If it is successful, it makes that many times the profit.
Now, let’s find out some of the most profitable strategies in Forex.
In this strategy, people need to primarily use candle sticks to make things easier. Traders have to enable moving average indicators of 50 period, 15 period, and 10 period on their trading platform. Once he/she has those indicators on screen, he/she needs to observe the movement of the pips.
When price rises above the 50 indicator, traders should sell, and when price is below the indicator, they should make purchases. This trade is the most profitable strategy in Forex especially when it comes to the Euro-USD pair.
- Candlestick Strategy
This strategy works well on a weekly frame and can be used in multiple currency pairs including Euro-US, AUD-US, and CAD-AUD among others. A weekly time frame is necessary for this strategy. Traders should choose the pair of currency that shows the biggest difference between the weekly opening and the closing points.
Dealers should make orders intending to close them during the middle of the week. A good tip to follow would be to open long positions for downward trends and short for upward. Candlestick strategy’s reverence as one of the most profitable Forex trading strategies owes to its versatility.
- Simple Moving Average Strategy
Known for its high returns with high risks, this strategy is very popular among the calculated risk takers. After setting up SMA for, say, 10 periods with 10 minutes intervals, traders should buy whenever value rises above the SMA and sell when it dips below.
“This is my profitable Forex strategy that has helped me reach where I am today.”
Many experts have sworn by this strategy when introducing newbies to the world of Forex.
Things to Know:
As you know about these popular Forex strategies, here are a few things you should keep in mind now:
No strategy in Forex is failsafe, but everything is a part of the learning process.
These are just an overview of the strategies. Traders can check out detailed videos on the internet to understand better.
Reading about the different trend movements that happen when trading currency pairs is important.
However, this is definitely a good head start to making solid Forex profits. Also, one of the most profitable Forex strategies for traders will always be the one they come up with themselves.
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.