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What keeps us alive? I know right, there are so many things. But what is the most vital one?
OXYGEN. Yes, you are on point.
Just like oxygen, STRATEGIES are a must if you want to craft a well-heeled trading career.
But there’s a BARRIER!
Not all strategies will suit you. Because each of the traders follows a specific trading style from which they got some positive outcome.
So, in this article, we will combine all the strategies together and make a versatile and successful forex trading strategy guidebook.
Scroll down a bit; We are about to start!
Why Do We Need to Follow Successful Strategies?
The answer is in the question. The keyword here is “SUCCESSFUL”.
Strategies are meant to create a WIN-WIN situation. But not all strategies are effective. Depending on the situation and state, strategies are put forward.
We already know that the forex market is not static. It keeps rotating and moving up and down. So, following the mediocre sort strategies won’t just help you but will put you in real danger.
But what’s the ESCAPE?
There is, and we have already mentioned it. Guess what?
To Follow the most versatile type of strategies. So that you can switch between each of them following what is in front of you.
But I have a question for you. “What is the main purpose of Trading?”
And I know your answer. “MAKING PROFIT”. Isn’t it?
Well, in an effort to make profits, a trader needs to pay attention to eradicating the losing trader and rather pay attention to the winning one. With the advanced forex trading strategies, you might be amazed that your profit growth will be increasing surprisingly.
Now let me show you a chance of Winning probability before we jump to the most successful forex trading strategy.
Forex is a global market and it is known as the biggest financial market. From the Bank of International Settlements, we can get an idea about the daily trading volume, which is nearly about 6.2 trillion a day!
By this number, we can predict the number of traders who trade globally.
But we can’t depend on a prediction right?
There are 10 million traders around the world who are somewhat connected to online trading. This means 1 in every 370 people! But what is your WIN here?
You have. You surely have!
A study says, 70% of traders quit this profession right after losing money. But the rest of 30% is constant. They are more or less successful and choose to trade as their main profession.
That means you have tons of trading strategies to follow which are to come from the 3 million successful forex traders.
Successful Forex traders may have different trading styles and strategies but they have one thing in common, which is the attitude that strongly does something principle.
But what are the perspectives? And is it a must to have them in order to become a successful trader?
Well, before we jump to the answer directly, there are certain types of traders who execute trades with the help of forex brokerage system. These perspectives are for them too!
And, YES! If you really want to take your trading career into a win-win situation, then it is compulsory for you.
Your mindset and attitude should mirror the following attributes.
Maintaining everything including time, money, and energy of course is a part of discipline. Off and on, you will see the price action will not outstretch your expected price point.
And at that time, there is a high chance that you will have a second thought about the strategy and the system you are following. But DON'T DO THIS!
Believe in your system and do not create doubt about it. Because this is all about Discipline. And in case you want to stop loss, Discipline is a must for you.
Stoicism means to become self-restraint or to have patience. After applying your strategies, you know what to anticipate from the system.
But you have to hold on for a bit so that the price climbs what the system indicates for either the level of entry or the level of exit.
If you see your system is notifying an entry at a specific level, then again you see the market is not reaching it then it is high time to switch to another opportunity.
Remember, “THERE IS ALWAYS A SECOND CHANCE!”
This is a must to have for a trader. Because the whole process of trading works in an actual situation. So there’s no position for unrealistic thoughts.
Sometimes you will see the market moving beyond your expectation. Sometimes positive and sometimes negative. So if you see the market moving towards the profit margin? Will you invest $500 at a time?
The answer is still “NO.”
Because the market can drop at any time. So it is better to go for a short-term investment. This will reduce the risks of facing the loss. And this is what is called Pragmatic Expectations or Realistic Expectations.
A biased Mindset can be a deadly thing in trading. You have to keep your emotional attachment aside and depend on the entire methodology or system.
“Believe in your System”- That’s the main thing about having an unbiased mindset.
If you see you are not getting the result that you were anticipating, Just hold on to your method and Do not put your ears to others' dogma. You may get a bad influence; who knows right?
These are the mindset that is a must to have. But along with these, you need to have that approach too you know. The Approach of a Winner!
Jokes apart.
Whatever, the most successful forex trading strategy will be your go-to destination And the Approach to Proper Forex Trading. This will lead you to a successful forex trading path. Also, you might be amazed that most successful forex traders in the world have a strong forex strategy for making consistent profits.
The time frame demonstrates the sort of trading that suits your frame of mind. Trading out of a quick chart recommends that you are more open to taking a situation without openness to expedite risk.
Then again, picking week after week charts demonstrates solace with, for the time being, risk and a readiness to see a few days go in opposition to your position.
Another thing, think twice and twice again that if you have the energy to sit in front of a screen all day long. Also, if you can put the time to do research on weekends and make a whole trading plan for a week portraying your analysis.
To make significant money in the forex market requires time, so you must manage the time properly and distribute it everywhere. Successful forex traders are much aware of timeframes.
We talked about Methodology earlier.
Each of the traders chooses their own way of trading, and that is considered a method. For instance, some choose to buy and sell breakouts. While some choose to buy support and sell the resistance.
Some others like to trade with the help of indicators like Moving Average Convergence Divergence (MACD) and Crossovers.
After choosing the method, keep it on a test to see whether it gives you harmonious support. And another recommendation for you is if you see your methods provide you at least 50% of your expected result and you should take it.
Once you are done with choosing the method that you ought to apply, then your next step will be to use the system on multiple instruments. Testing it will help you identify if your system’s personality synced well with the instrument.
For instance, you are trading the USD/GBP pair in the market, and you may see that the support and resistance levels are more reliable on Fibonacci. Successful traders put money on the market so that they can utilize it for making more.
With the size of the trade, we can gather an idea about the risk sentiment. This is why finding out the size of the trader is foremostly important. And free advice will be, do not take Risks that you cannot carry! This can lead you to a more significant loss.
Now it is time to put your eyes and your total conscience on learning the Seven most Successful Forex Trading Strategy.
So let’s get going!
7 Most Successful Forex Trading Strategy
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Until now, you have learned about the things forex traders do, the attitudes they possess, and most importantly, the time frame, size of the position, Market (Instrument), and the methodology to follow.
Yes, you have come this far!
Now we will talk about the forex trading strategies, which are considered the most successful over the period. So let’s dive in!
Day trading pertains to the most common way of trading currencies on a single trading day. Though in all markets, the day trading strategy is claimed to be the most followed trading strategy in Forex. This way of trading encourages you to open and close all exchanges on a solitary day.
No position should remain open for the time being to limit the risk. Dissimilar to scalpers, who are seeking to stay in markets for a couple of moments, day traders generally stay dynamic throughout the day checking and overseeing opened exchanges. Day traders are for the most part utilizing 30-minute and 1-hour time periods to produce trading thoughts.
Numerous day traders have a tendency to prop their trading strategy on the news. Events that are planned, for instance, interest rates, economic statistics, GDPs, races, and so forth, will more often than not emphatically affect the market.
Moreover, there is a limit on each position that day traders set as a daily limit of risk. The expected percentage of taking the risk in a day between the traders is 3% only. This will work as a safeguard on your account and the capital. In these 7 effective forex trading strategies, you will find every important aspect of successful forex trading elements.
The involvement of opening a vast number of trades in a single bid to obtain a small number of profits per each is termed Scalping.
Scalping is one of the most popular trading strategies which is applicable to smaller movements.
Scalping is very renowned in the Forex market because of its liquidity and instability. Investors are searching for business sectors where the cost activity is moving continually to profit by changes in little augmentations.
This kind of trader puts attention on profits that are around 5 pips for every trade. Nevertheless, they are believing that countless trades are fruitful as the benefits are steady, stable, and simple to accomplish.
An unmistakable disadvantage to scalping is that you can't stand to remain in the trade for long. Also, scalping requires a ton of time and consideration, as you need to dissect charts to track down new trading open doors continually.
Position Trading is mainly marked as a long-term strategy or kept in a long-run trading plan. The other two popular strategies, for instance: day trading and scalping are usually concentrated on the major factors.
The up and down of minor markets are not taken under consideration in position trading, and the reason behind it is the smaller moves do not strike on the image of a big market.
Position traders observe all the political turns of events, national bank monetary terms, or any update from the local banks about forex and other essential variables to distinguish cyclical trends. Position traders who are successful might open only a couple of trades over the whole year.
After everything, the profits focused on these trades will probably be a few pips for every trade. In my thought, position trading is the best way to trade forex profitably.
The process of finding out the support and resistance points where exactly the traders will place the trade is called range trading. And as the primary tool, technical analysis is the only way to range trading strategy. Most successful traders use a range trading strategy as their go-to choice.
Range Trading works perfectly without any remarkable volatility and recognizable trend. On top of that, there is no specific length for each trade in this method because range trade can work in any time frame.
Another most important thing that you should keep in your mind is that this strategy has an integral part, which is to MANAGE RISK as breakouts can take place at any moment.
Surprisingly, a trader who only follows the Range Trading strategy will surely close present range-bound positions.
Trend Trading
Trend trading is one of the easiest and most versatile kinds of forex strategies which is followed by traders of almost all experience levels. And when it comes to the length of the trend trading strategy, it occurs over the medium to long-term time. It is because trends go up and down within themselves in length.
When it comes to the entry and exit points of trend trading,
Entry points are typically assigned by an oscillator (RSI, CCI, and so on), and exit points are determined in light of a positive risk-reward proportion.
Utilizing stop level distances, Traders can either approach that distance or surpass it to keep a positive risk-reward proportion for example In the event that the stop level was put 50 pips away, the take profit level would be set at 50 pips or all the more away from the entry point. Whatever you argue, trend trading is the most successful forex trading strategy.
Swing Trading is marked as the most hypothetical forex trading strategy among the traders. By selecting the bottoms and the tops, traders can take place in long and short respectively.
In addition, swing trades are also marked as the medium-term. Because positions take place anywhere and in between a few hours to days.
Trends that are long-term are usually preferred by the traders as they get a chance to capitalize depending on the trend at several points across the trend.
Now, if you are thinking about the entry and exit point of swing trading, it is similar to the range-bound strategy. Here’s an option to use the oscillators and indicators to choose the optimal entry and exit times as well as the positions.
The main advantage of swing trading is the solid number of trading opportunities and minimal risk-reward ratio. That’s why you can say it is one of the most successful forex trading strategies.
But like everything has a drawback, so does swing trading.
It requires a large-scale time investment and a powerful sense of technical analysis. Most successful forex traders must consider the benefits of the swing trading strategy as it’s the most successful trading strategy.
Being a global marketplace, the whole function of Forex is prompted by the World Economic or Monetary events. Besides all the economic concerns, the Forex marketplace depends on natural events or any chaotic incidents.
This is because the “Economy of a Country depends on Each and Every Move!”
Each event occurring carries its value, which causes the change in the market. And te traders examine those events and compare them with the current market condition rather than keeping eye on one single variable.
Novice Traders usually are dependent on the economic calendars and the indexes for example CCI (Consumer Confidence Index) to assume the changes that are ought to occur and the moving direction of the prices.
News trading has the potential of making a high profit if only small breakout trades take place in a short time period. But the drawback is, that it has more risks compared to other strategies! Along with the best forex strategy for consistent profits, you must consider forex trading vital points.
Generally speaking Swing traders (otherwise called position trading) have the most achievement while initially heading out to track down the best trading system to earn enough to pay the rent. It is additionally conceivable to utilize ETFs for any of these procedures.
There are a few. The most profitable currency pairs are GBP, EUR, and USD, and EUR/USD is the most traded currency pair available, with EUR/USD trades making up 24.0% of day-to-day forex trades in 2019. The prevalence of the EUR/USD pair comes from the way that it is illustrative of the world's two greatest economies: the European single market and the US.
Covered calls are the most secure choice strategy. These permit you to sell a call and purchase the hidden stock to decrease chances.
Breakout trading is one of the simplest forex trading styles, making it a good choice for beginners. Before we look at how it works, let's define the term “breakout”. Put simply, a “breakout” is any price movement outside a defined support or resistance area.
Breakout trading is one of the easiest forex trading styles, settling on it is a decent decision for fledglings. Before we take a gander at how it functions, we should characterize the expression "breakout". Set forth plainly, a "breakout" is any cost development outside a characterized help or obstruction region.
Trade FOR THE LONG RUN.
The main brilliant rule of trading is 'there is no alternate way to fast acquiring'. Financial backers ought to follow an interaction to arrive at their monetary objectives, which incorporates monetary limitations and a methodology that assists coordinate your objectives with those imperatives.
Scalping can be truly beneficial for traders who choose to involve it as a vital strategy, or even the people who use it to enhance different kinds of trading. Sticking to the severe leave technique is the way to create little gains that compound into huge additions.
The strategies are not enough to put the success mark on each trade. There are certain things to follow as well. For both novice and successful forex traders.
Take a look at them!
Trading is indeed subtlety and expects as much workmanship as science to execute effectively, and that intends that there is just a profit-making trade or a loss-making trade.
And with the most successful forex trading strategy, trading can be fun. And one thing for sure is that must read the forex trading strategy pdf to learn the detailed picture of every single forex trading strategy.
Now put a note in your mind.
The most effective strategy of Trading is “Pointing out The Flaws that you made.”
We all know George Soros, who is one of the most successful forex traders. George stated, “I'm only rich because I know when I'm wrong.”
Happy Trading!
