There is no such thing as the best strategies/systems for trading forex. This is because the forex market can be traded profitable with different approach. Also considering that there are different market environments and trading methods, it will make no sense to say that a strategy that worked so well for A is bad because it did not work for B. it is possible that A and B are using different approaches to trade the forex market. Irrespective of the approach a person chooses to trade the forex market with, the aim of it all is to make profits. Therefore, they may follow different approaches but there are some basic things the best forex strategies and systems have in common.
DIFFERENT TRADE METHODS REQUIRE DIFFERENT STRATEGIES
Like was mentioned earlier, there are different ways of trading the forex market. For instance, a long term trader does not have to apply the same strategy used successfully by a short term trader. Every one that is trading, or wants to trade the forex market should be warned about this; not all wonderful strategies are good for you. You have to understand the kind of trader you are before you can start looking for a strategy that is best for your trading method.
Here are some methods of trading the forex market;
1. DAY TRADING:
This is for short term traders. It lasts nothing more than a day. This removes the chance of being adversely effected by large moves overnight. Trades may last only a few hours and price bars on charts might typically be set to one or two minutes.
2. POSITIONAL TRADING:
Unlike day trading, position trading is a long term forex deal. The average traders in the forex market do not usually do positional trading, probably because it lasts as long as months, and sometimes years.
These are very short-lived trades, possibly held just a few minutes. A scalper seeks to quickly beat the bid or offer spread and skims just a few points of profit before closing. A classic case of “little drops of water make a mighty ocean”.
4. SWING TRADING:
This is another short term trading method that a lot of average traders can afford to try. It involves holding a trade for days in search for the best time to exit the market with good returns.
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