There is no specific forex trading plan that can 100% guarantee you to be a billionaire within a short period of time.
Millions make strategies worth millions, but unfortunately, nothing can beat the unpredictable nature of the forex market. You can only taste success once you learn to better modify your trading approach and be patient with the market change. These are the real secrets that can take you to forex success.
A thorough evaluation of the trading schemes and strategically setting stops have so far shown good profitable outcomes for many traders.
So here in this article, we are about to discuss several forex trading strategies that you can opt for, as per your trading style preference.
Following are some different Forex trading strategies you can use in your trading
PRICE ACTION TRADING
Price action trading is the process where past market prices are determined to formulate technical trading strategies. This technique can be used with an indicator as well.
Price action trading has different time periods for analysis that provide convenience to most traders.
RANGE TRADING STRATEGY
Range trading strategy is used to identify support and resistance points that will be considered while placing a particular trade. Technical analysis is usually used with this strategy. This will allow for more trading opportunities to go for.
TREND TRADING STRATEGY
Trend trading strategy has a medium to long-term time horizon and is generally used by many traders out there. This strategy is applied to produce maximum profit returns by evaluating market conditions.
Position trading is a long-term strategy where both fundamental & technical methods are used.
Position traders follow economic factors to forecast their next step in trading. This includes monthly or yearly frame charts to comprehend the market situation and ensures a positive risk-to-reward ratio.
DAY TRADING STRATEGY
This method includes trading within a single day using financial instruments that includes technical analysis & charting systems. You can either go for a single trade or multiple trades within that day. The trading time may be short as a few minutes or hours.
FOREX SCALPING STRATEGY
Traders who frequently take out small profits through the opening or closing of multiple positions throughout the day is called scalping. According to entry & exit positions, scalping can be done either by manual signals or using algorithms. This kind of trading has a short time span, ranging from 5 to 30 minutes with minimum profit in return. Indicators like the moving average are used in scalping. You can find multiple trading opportunities from here.
Swing trading strategy is used to make trades based on changes in stocks, commodities, or currencies. Traders can enter long or short positions using swing trading. Swing trades can last a few hours or days.
The techniques we have shared show how diversified the forex business can be. Learn each strategy to get a vast idea about how trading can be efficiently handled.