Do you know what is the key aspect of trading? It’s disciplined, and the things that help you to remain disciplined while trading is trading strategies. If you follow well-seasoned, and backed-tested foxes trading strategies you can protect yourself from the losses. Along with that it will improve your confidence and make you a seasoned trader.
In this blog, we will tell you the best trading forex strategies that will help you to take the benefits of forex trading. You can also download the forex trading strategies pdf for convenience.
Before discussing any kind of forex trading strategy, we need to understand why would one consider the trading forex.
One of the significant reasons to consider the forex trading strategies is that it protects a trader from losses, and offers them a profit from any overseas country.
With the help of decent trading strategies, you can easily progress in the Forex trading world. If you are new in the game, then it’s better to play with trending strategies.
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What is a Forex Trading Strategy?
A forex trading strategy defines a system that a forex trader uses to know when to buy or sell a currency pair.
There are two types of forex strategy:
2. Technical analysis
An excellent forex strategy enables you to analyse the market and confidently execute the trades. If you want to experience a hassle-free forex trading experience then you should follow the trading forex strategy.
Best Forex Trading Strategies
Here we have rounded up quick trading forex strategies that will quickly boost your trading game. Now, we will tell you the overview of tested, and well-researched strategies that have worked for many traders.
Here are the Top 11 best forex trading strategies and their pros and cons.
1. The Bladerunner Trade
The Bladerunner trade is the price action trading strategy in the market. It can be used to speculate on prices rising by going long or falling by going short.
No matter, whether you go long or short, this strategy gives you a bullish or bearish signal. It relies on a 20-day exponential moving strategy. The EMA is a moving average that places greater significance on the most recent prices, and data points. If the current price action is above the EMA, it is likely to drop in the future. If the price action is low, the EMA, it is likely to rise soon.
- Doesn’t need chart indicators.
- Can place a stop-loss to manage risk.
- Can be adjusted to match the timing of placing trades.
- Doesn’t help you in predicting the right time to trade.
- You will never know how much will make.
2. Daily Fibonacci Pivot Trade
The Daily Fibonacci Pivot Trade uses standard Fibonacci retracements in confluence with the daily pivot levels to get trade entries. It can incorporate any number of pivots. You can download the Forex trading strategies pdf to know more about this strategy. A pivot point is a technical analysis indicator, which is used to determine the overall trend of the market over different time frames.
- This forex trading strategy is free to use.
- In the forex trading strategies pdf, it is said, this strategy can increase the number of opportunities you can chance upon.
- Has a favourable parameter to use.
3. Forex Overlapping Fibboniac Trade
It is one of the most favourite forex trading strategies among traders. The reliability tends to be a bit lower, but used in combination with appropriate confirming signals, they become extremely accurate. This strategy uses the confluence of the fibboniac levels, with other Fibonacci levels, support levels, resistance levels to spot marketing entry.
4. Bolly Band Bounce Rate
Bolly Band Bounce Rate is a very popular trading forex strategy which works on the principle of reversion to the mean. To improve the Bolly band bounce strategy use candlestick patterns. Trading with divergence is another way to make the trades more effective using the Bolly Band Bounce Rate. It is not just as a strategy in itself but is flexible enough to be used on any type of technical analysis.
- Best used in a flat and quiet market.
- Makes use of Bollinger bands indicators.
- Ideal when not wanting to deal with an exciting market.
- The unexpected market activity can affect this strategy.
5. The Pop ‘n’ Stop Trade
The Pop ‘n’ Stop Trade gives you a simple idea of whether the price will continue to rise or fall. Price ‘Pops’ beyond a trading range limit- in the case of a Pop ‘n’ Stop trade a resistance level- and ‘pauses’- ‘Stop’, before assuming the direction of the initial breakout.
6. Trading the Forex Fractal
This is more a concept than a trading forex strategy, but it will be helpful if you want to understand what prices are doing. It offers you a lesson in market fundamentals, which help you to trade in the market effortlessly. Currencies trade strategy is a game of hit and trial. In the above-mentioned list, this trading forex strategy is worth checking out. Although, it is essential to consider all the forex trading strategies pdf.
- Fractal is a great tool for technical analysis.
- It can be the best strategy when used with conjunctions.
- Need to stare at the screen for a long time.
7. Scalping in a Nutshell
However scalping, in a nutshell, is a time-consuming trading forex strategy, but if you use it effectively, it will give you a better return of the investment. If you are looking for easy to use and reliable, this might be your safest choice. Many traders say they get smaller returns from this investment but at a steady rate. For example, if you trade USD pairs and the price of either jumped to 20 pips, you get a slight profit for taking an action. This is a small profit margin, but it is made in a single minute. Hope you understand the importance of this trading forex strategy.
If scalpers want to avail the benefits of the new releases, they should wait for the important ones. At the time of scalping, remember When GDP, unemployment figures, and inflation rates about to release.
- Have lots of trading opportunities each day.
- Can make a healthy income from trading.
- It’s a highly stressful endeavour.
- You need to stare at the screen for many hours.
8. Positioning Trading- Consistent Forex Trading Strategy
Scalping can teach you to trade the currency market, but it requires lots of time and effort. You need to spend long hours when scalping. Positioning trading is the best alternative way of scalping and the interesting way to trade in the forex.
If you download the forex trading strategies pdf you will know how positioning trading works. This strategy is all about having your position open for a longer time so you can catch some large market moves.
With this forex trading strategy, you will not only learn how to do forex trading but also the skills that will make you an exceptional trader. Although, this trading requires a dedicated amount of time because you need to analyze the market and predict its moves.
- A position trading can be locked in for an extended span of time.
- Less risky compared to other forex trading strategies.
- Requires skills to understand this strategy.
9. Day Trading Strategy
It is a short trading strategy where you will hold your trades for a minute or hours. The typical time frames you will trade are usually between 5 minutes to 15 minutes. As a day trader, you may fear market volatility. Day trading is only profitable when traders take it seriously and do their research. Keep in mind, it’s not a hobby, you need to learn some tips before entering into the market.
- If you are good, you can make money in most months.
- No overnight risk because you close your positions by the end of the day.
- Glued to the screen for a long time.
- Can face a huge loss if you suffer massive slippage.
10. Swing Trading
Swing trading is a style of trading that attempts to capture the short-term and long-term goal gains in the stock over a period of time. It is a speculative strategy that exposes a trader to overnight, and weekend risk. You can gain profit by establishing a risk/reward ratio based on the stop loss. The sole purpose of Swing Trading is to capture a chunk of a potential price movement. Expert swing traders are not only capturing a chuck, but also the opportunity that will take them to the next level.
- Have lots of trading each day.
- You can make a healthy income with this strategy.
- It’s highly stressful.
11. Carry Trade Strategy
Carry trade is one of the simplest forex trading strategies that involve browning from a low-interest rate currency to fund purchasing a currency that provides a rate. You can use this strategy to capture the difference between the rates, which can be sustainable depending on the amount of leverage used. This strategy is dependent on interest rates fluctuations between the associated currencies. Since carry trades can be a risky forex trading strategy, but it will give you a better return of the investment.
- Since it’s a long term strategy If you are an investor then this strategy is the best for you.
- Best for traders
- Must understand currencies
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Don’t be hesitant to try all of these forex trading strategies. As a beginner trader, you aim to learn and gain experience. The more you go diverse the better you will learn. Applying these will test out your skills and make you a successful trader.