In this article, we will look at what features are most common in most professional forex strategies used in trading currencies. A thing about professional in forex trading, or any spec of life at all, is that they are seasoned in whatever they do. Professional forex traders are not only skilled and knowledgeable in the act of trading the currency exchange market, but also experienced; something that is indisputable any tie any day. So, when it is said that a strategy is a professional forex trading strategy, it has got to be effective and highly profitable, all things being equal.
Professional forex trading strategies are tried and tested method of trading known to be effective in at least one of the forex market conditions. Talking about market conditions, there are the following market conditions that every trader must have to face at one time or the other. They are
- Bull normal
- Bull volatile
- Bear normal
- Bear volatile
- Sideways quite
- Sideways volatile
Under a broader circumstance, we can also talk about the following forex markets
- Future market
- Forward market
- Spot market
Seeing as all these are different types of markets and conditions applicable in trading the forex market, it is not a bit unexpected to learn that they require different strategies. So, one have to be careful when and how to use any forex strategy at all, recommended by professional forex traders or not.
1. FAVORITE COMMODITY:
Different currency pairs trade in different ways, and professionals know this. So they design their strategies specifically for that particular commodity and market that is their favorite. Most professionals will go for major currency pairs with higher possibility of profits (and losses).
2. TRADE TIME FRAMES:
Professional forex trading strategies are aimed at making money in the long run in most cases. With careful analyses, they spend time on the bigger picture with higher time frames. There may be a lot of ups and downs in-between, and they may decide to take advantage of that is they so wish, but their main goal is always on the big shots.
3. FUNDAMENTAL ANALYSES AND PRICE ACTION:
As surprising as it may be, many professional traders do not use strategies that are heavily dependent on economic news or other fundamental analytical method. Rather, they use strategies that rely on price action. According to them, this gives a trader an insight on future occurrences and how best to tackle them instead of wasting time on news events about things that have already come to past.
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.