All successful traders were newbies sometimes, who studied trading from the very foundations. The experience and success came in time. While many of them are self-taught, there are now many online courses to help you familiarize with the Forex platform, professional terms, trading principles, etc.
As a practice, vast of them mostly use fictitious demos that need to simulate trading day on Forex. Everything looks real, losses, profits, changes in courses, and this is about enough to start. True excitement (and stress) comes once you enter the platform for real.
As the initial step, you are just looking at trading on the Forex market. You know that some people managed to make money there, so you also decide to try it out. After completing a course or reading a couple of books, everything seems pretty clear to you. You can sit at home and make money, using all the benefits of modern technology. If it was easy, everyone could be a billionaire.
Go with the Strategy
But you realize it won’t happen overnight, and no one can guarantee you the success. Many strategies and tactics of trading were developed by companies and individual investors, who spent years of learning, examination of the market and following the news and daily, monthly or periodic rates.
Reviewing strategies and successful trading styles comes in the stage when you notice that the market “goes against you,” whatever you do (here something you can learn in order to deal with these situations). Entire copy-paste of a single tactic is not possible, as you have to adapt it to technical conditions, but also to your trading preferences and personality.
We’ll show you some of the strategies that are popular among today’s traders. Each of them has a detailed methodology, which you have to learn before the actual application. Each upgrade of tactics through creativity, constant analysis, and market monitoring, will bring new results and favorable trades. In the end, it forms a unique style of the trader.
Strategy of Daily Charts
For Daily Chart strategy, you need to know and monitor the smallest shifts in the value of the currency you are trading with. On charts that show everyday movements, over a hundred such changes, also known as pips, can be found. Although this is a short-term strategy, it can give good predictions for some future trading.
A good choice of trading strategy gives you the opportunity to “swim” smoothly on the market, using forex signals created by professionals. Movements in the currency market are cyclical, and the best predictions you’ll get if you monitor these over some extended period. In this way, you can determine in which direction your further trading will go. It is important not to rush, and to wait patiently for the right signal to enter the market. Also, set the real limits when you’ll leave the market after hitting a stop loss.
In financial terms, the hedging serves to reduce the risk of some other investment. It’s like insurance that will prevent possible loss of funds. In other words, this is the Forex trading strategy of dealing on two sides with the currency pairs that are connected. Trading with one pair will go in one direction, the other in the other – it’s called opposite positions on correlated pairs.
The hedging strategy is relatively safe, but let’s be honest; without risk, there is no profit. That’s why it takes a bit of “toughening” the trading, through more detailed analysis and using additional methods for predicting trends because hedging can’t do that. It’s just here to push you to take advantage of the current dynamics of the market.
One-minute Trading Strategy
The one-minute scalping strategy is a simple strategy for beginners, which allows a high frequency of trading. As the name says, within minutes, you track the movements of your currency pair. Using one of the many programs, set the indicators to indicate which action you need to perform. You have to do this in just one click, through Forex trading programs and applications. So this strategy requires quick reflexes, good sense of trading and mathematical skills.
The appearance of the signal depends on the market movements and the setting of the indicators. They serve to anticipate rate changes or to inform you about future actions, based on previous “experiences.” The opening of “buy” or “sell” action depends on the position of the indicators. The point is to use “small shifts,” even when there are no significant changes on the market – scalping.
On the currency market, fluctuations in prices occur very often. The ability of a good trader is to anticipate and use it. Since it is impossible to rely only on your lucky star, you have to use some “scientific” methods. Besides a reliable strategy, a good “sense” for action on the market is essential. And you can’t learn this at the trading course; it’s a matter of practice.