Forex trading strategies

The discipline is considered as the most important criterion for success in Forex. This is the most important thing in trading. To preserve the necessary discipline, you need to work out or choose a strategy that has already been worked out and which you can follow.

If the experienced traders use the strategy that you've chosen successfully, you can be sure that you will be able to avoid the certain mistakes and problems in the work. There are the specific trading methods that are the part of the overall trading plan. The agreed trading strategies provide the excellent signals to enter the market, but in this process, you should take into account the following:

Trend direction;

Risks and the proper risk management;

Points of entry and exit from the trading operation;

The most popular trading strategies

Scalping. It is a matter of the short-term operations that can be opened for just a few minutes. Moreover, in this case it is possible to focus on the opening the trading position precisely based on the observational data, as well as on the signals from the various technical tools. The scalper seeks to receive the instant profit of only a few points. For the successful trading it is recommended to apply the tick charts;

The intraday trading. It is a matter of the trading operations that remain open exclusively during the day. In fact, this type of trading brings on the probability elimination of the exposure to the large impulses. The trading process may take several hours, and may continue for just several minutes. In the process of such trading strategy it is necessary to analyze the data of the various technical tools more thoroughly and to use the data of fundamental analysis in the analytical processes.

Swing trading strategy. The short-term price formations can actually bring a trader the essential profit. This trading strategy is to implement for several days. It is based more on the analytical data and stimulate the making the quite substantial profit;

The positional trading strategy. It's a long-term type of the trading. This type requires a more detailed analysis of the various technical tools data and is based on the fundamental analysis. A trading position may be active for significantly long time. This trading method is designed for the key currency pairs. The profit is stable and small, the risks of losses are minimal.

The positional trading strategy: the advantages

It is almost impossible to immediately choose which strategy of the above is suitable for a particular case. In addition, knowledge of such trading strategies does not always guarantee successful entry and exit from the financial market, but at the same time it minimizes the risks and the losses. The experienced traders confirm that the position trading strategy is considered to be potentially profitable one.

This trading strategy implies the holding the financial operation for a reasonably long time, and often the trades are triggered during the whole year. But this type of trading strategy requires the ability to predict the market situation, the prediction is based on the detailed and complete analysis, as well as on the creating of the long-term trading plan. When choosing a currency pair, you should consider the following parameters:

High volatility

This parameter is critical for the profit. You have to choose the currency pairs whose fluctuation can be influenced by the global political events and the certain economic events.

The low parameters of short-term volatility

Choose the currency pairs that are not subject to the sharp fluctuations, otherwise the long-term strategy will turn into a complete nightmare, and often when the market start moving against the operation opened, the traders cannot withstand and close the operation.

Use the low margin

For the position trading strategy you should use the minimum parameters of the credit facility. In this case the amount of funds in the trading account is considered. Remember, the less leverage — the better.

The advantages of scalping

This strategy assumes that the trader has the opportunity to leave the market in the shortest possible time. This working method can bring essential profits for a minimum amount of time. The experienced professionals recommend opening the trading positions for a time period of not more than five minutes. During this time the market will not be very vital, but the movement of 1-2 points will allow you to make the profit, close the trading operation and open a new one after some time. The profit from one operation made will not be the very large, therefore it is recommended to open as many trading operations as possible. The effectiveness of scalping acts exclusively on the day traders.

The advantages:

This is the ability to trade with a minimum deposit. In fact, this method is ideal for those traders who start with the small capital. By means of scalping, the deposit during the day can be increased by 25%, which will allow you to accumulate funds for more serious strategy types;

There is no need for a long period to watch the fundamental changes happened in the financial market. The nature of this strategy is to learn the movements of the price rates just in recent days by using the technical analytical tools;

The minimal risks of deposit losses. The price movement by several points brings not so essential profit, but at the same time the risks of losses are minimal.

Many traders believe that this type of trading strategy ideally appeals to beginners, but in fact you need to remember about endurance and reasonable using of the deposit. You should not trade for the sake of trading, and all opening operations has to be thought out and rely on the detailed analysis.