A great way to make money is trading but holding it is not that easy. You need to learn that only a few people become good successful traders. There is a set of strategies, which you need to follow.
“The question should be how will I survive or will it be fine if there will be no profits instead of having a question of how much profit will I have on this trade.”
Trading strategies map out a system for traders in the Forex market. Numerous trading strategies permit the traders to analyze and then perform their trades without any fear of loss and with comprehensive practices of risk management.
1.Price action strategy or Bladerunner Trade Strategy
Currently the most trending strategy in the market is Bladerunner trade, which is also known as price action strategy. To articulate the technical strategies for trading, the study and research of historical prices are conducted. This strategy is appropriate for all the pairs of currency and timeframes. There is a wide range of trading strategies, which fall under the price action strategy.
The price strategy involves the study of prices of all the financial assets for example pairs of currency, shares, and commodities. The traders need to analyze the trends of prices in order to generate profits effectively.
2. Position trading strategy
The strategy, which has long-term point of view such as weekly monthly, or yearly, is position trading strategy. This approach is highly focused on fundamental aspects and because of its wide range; it can be engaged in all the market.
Fundamental aspects like monetary policies of the central bank and political developments are observed by the traders. This strategy requires traders to have patience, as their trading positions can be longer from weeks to months or years.
3. Day trading strategy
This trading strategy is considered to be a full time occupation as it involves an active trade for a day. The main advantage of this strategy is that it permits the day traders to be benefited from the variations of prices in the open and close hours of the market.
The traders can trade their currencies on a day of trading.
In day trading, no trade should be opened for a night to reduce the risks and losses. The base of the day traders’ trading strategies can be news, arranged events, interest rates, facts, statistics, and GDPs. These factors have a strong influence on Forex trading.
4. Swing trade strategy
The concept of this strategy is cleared by its name because “swing “means moving back and forth. Thus, this strategy involves trading on both sides of the movements of the market. The swing traders take the advantage of markets to swing when the prices are moving back and forth. They sell the security when they are not sure that prices are falling and buy the security when there is a projection of an increase in prices.
The traders can examine the length, depth, and duration of their swing trading. By this, they also analyze an upsurge or decline in the swings.
5. Scalping trade strategy
Scalping strategy involves a short-term and a small trade along with small fluctuations in prices. The traders are also known as scalpers. The traders keep an objective of generating small profits with the expectation that those profits will be accumulated.
As in scalping, the profits are small and gather slowly that is why an exit strategy must be positioned in order to minimize or avoid any projected loss or risk.
Scalping trade strategy is very famous in Forex Trading and can be acquired by opening and closing the diverse nature of positions all over a day.
The profits in scalping are the results of small fluctuations in the prices. These smaller gains slowly and steadily generate larger profits for the scalpers.
These are all the five trading strategies that are crucial to know in order to become a successful trader and to avoid heavy losses.
“Whatsoever approaches or strategies you opt to enter the trade, the critical aspect is that if the main trend occurs, then your strategy must guarantee that you are in that trend.”