The development of the Forex market has now reached a truly global scale. Thousands of people around the world are making deals, trying to increase their capital. With the growth in demand and the growing number of customers, trading strategies have emerged that help to more productively trade.
To date trading in the forex market, there are many different strategies that traders use depending on their needs and the free time that they allocate for trading. Each trader chooses for himself a more comfortable strategy.
Markets Cube, along with a large number of working tools and trading methods allow its customers to use a variety of trading strategies. Below we will consider those strategies that are the most popular among the company’s customers.
Short-Term Trading Strategy (Day Trading)
Short-Term Trading Strategy or Day Trading is a strategy whereby transactions (buying and selling) occur within one trading day. This strategy can occur in any market, but most of them occur in the forex market and the stock market. Traders using this strategy, also they use a large number of levers to take advantage of small (short-term) price fluctuations in highly liquid stocks or currencies. Day traders perform two important functions on the market: they effectively manage markets through arbitration and they provide the bulk of liquidity in the markets. This strategy is different, it does not require a lot of time and serious knowledge. Because of this, it is very popular among beginners.
Medium-Term Trading Strategy
The Medium-Term Trading Strategy implies the execution of transactions and the planning of positions take several days ahead, using various factors, such as fundamental analysis and technical indicators of the market. Compared with short-term strategy and long-term trading, medium-term trading has the lowest capital requirements. However, for this strategy, there are fewer opportunities for trade. The strategy includes viewing several time frames and using technical indicators such as moving averages and stochastic ones. In addition, support and resistance levels, trend lines, Fibonacci retracements and control points are also used. Candlesticks and charts are also actively used by traders in the medium-term strategy. It should be noted that to use this strategy, the trader needs a deeper knowledge of the specifics of the market than in the short-term strategy.
Long-Term Trading Traders (Positional Trading)
Long-term Trading Strategy or Positional Trading is a strategy that involves the execution of transactions over a long period of time (from several months to several years). Using this strategy, the investor or trader looks at the asset in the long run. But, to use this strategy, you need to be an experienced trader and clearly understand the dynamics and specificity of the foreign exchange market. If you have the necessary knowledge and the right approach, a long-term strategy frees up a lot of personal time, because, in this case the trader is not an active participant in the market and there is no need to follow it constantly. Long-term trading makes it possible to use compounding. Compounding is a system in which investments grow at the expense of interest received both in principle and in accrued interest over a certain period of time.
The trading strategy is a very important factor of the productive trade. You only need to consider all the pros and cons of different strategies and choose the strategy that suits you best. And then – go for it.
We wish you successful selection and productive trade!