Three key strategies you need to know as a currency trader

Everyone wants to lead their dream life. People wake up very early in the morning thinking about how to can secure their financial freedom. Due to the global economic crisis, finding the perfect job has become extremely hard. Even if you manage to have the right position in the top tier of a company, the chances are that you will become a victim of professional politics in the working environment. So what do you need to do to live your dream life? This is where the term Forex trading comes into action. If you can master the art of currency trading, you can easily use a high leverage trading account to make a huge profit from this market. But things are not so easy. You have to learn the details to find the best trades. In today’s article, we will highlight three important strategies you need to know as a trader.

Price action trading strategy

Price action trading strategy is extremely popular among the professional traders. It allows them to trade the key levels of the market with an excellent level of accuracy. Some of you might think about mastering the art of price action trading is nearly impossible, since you will have to memorize different candlestick pattern. But if you can understand the psychological reason behind the formations of such candlestick patterns you can easily improve your chances of winning trades. Those who are looking to make a quick profit from this market will have to face extensive losses even after using price action system. You need to trade the market in a stress-free environment and focus on the long-term trend. Try to do the multiple time frame analysis and wait for the confirmation signal to place your order. Never rely on your emotions as they will likely lead you to overtrade the market.

Chart pattern trading strategy

Chart pattern trading is often considered the most advanced form of trading strategy. In fact, this is one of the most effective ways to execute a long-term trade in your online trading account. During the event of the high impact news release, the market becomes extremely volatile and it becomes nearly impossible to find the best trades. But this doesn’t mean the professional traders are not taking advantage of the highly volatile market. They are simply using the different chart pattern to ride the long-term trend. Most of the time the price tends to break a major support and resistance level after the news is released. So there is no point in placing trade prior to the scheduled news event as it will increase the risk factors dramatically.

Simple trend line trading strategy

Though the trend line trading system is extremely simple the professional traders often consider it as the most effective way to make money. First of all, you need to identify the trend in the higher time frame. Those who try to ride the trend in the lower time frame are the ultimate losers. However, there are some scalpers making a huge profit by trading the minor trends. As a new trader, your prime focus should be on the daily time frame since it will give you an overall picture of the market. If possible try to use your price action and chart pattern trading know-how to find the best trades. Some of you might even use the Fibonacci retracement tools to find the strong levels of the market. When you do use the Fibonacci retracement tools, make sure you are using the correct time frame and key swings of the market.

So far you have read about the most important strategies in the retail trading industry. If you can master these three simple strategies you will be able to trade like the pro trader. So learn this three point system very carefully in order to execute the best trades in this dynamic market.