ADVANCED FOREX TRADING STRATEGIES
This time we have written a blog for Forex traders who have had 3-4 years of trading experience and know-how the FX market works. We try to analyze how an experienced Forex trader can maximize their profits by following advanced Forex trading strategies that will help them go a long way.
AN INTRODUCTION TO ADVANCED FOREX TRADING STRATEGIES
When it comes to trading strategies, it's important that you test your new forex strategies on a demo account in order to see if it will be successful alongside your trading style. Even if you're an advanced trader, it's imperative that you determine the success rate of your own implementation of any forex trading techniques before using them on a live account. Advanced trading strategies can be risky if not used correctly.
Advanced forex trading is for those who have disciplined themselves to trade using logic, as opposed to relying on their emotions, or a gut feeling. This isn't to say a gut feeling shouldn't be listened to, but it shouldn't be the singular basis of setting up a trade.
If you wish to take up advanced forex trading techniques, then keep in mind that your success is determined by your own decisions, so be sure to have a strong basis for any decision you undertake within the forex market.
With that said, let's jump into today's article so we can discover the trading strategies that you can apply in order to enter the arena of advanced forex trading.
TOP ADVANCED FOREX TRADING STRATEGIES
In the absence of understanding, Forex can become a complex subject. If you apply the correct forex strategy and have some patience, then it could become profitable in the long run. Although at the inception, you may find it easy to only focus on finding the right currency pair for trading, it could get complicated and confusing when you start to achieve higher profits and take more risk. When you have sound knowledge in the basics of trading, advanced Forex trading strategies can help you enormously to learn and earn larger gains from the forex market.
Let’s get to know some of these advanced Forex trading strategies to become proficient with advanced FX trading.
HEDGING IN FOREX
Hedging has long been one of the promising ways to reduce risk. You can do this by simply taking both sides of the trade at once. When your broker permits it, a simple way to hedge is to begin a long and short position on the same pair. Traders, engaging in advanced Forex trading strategies will often resort to trading two different currency pairs to complete one hedge. A foreign exchange hedge is an excellent method, which is often used to do away with large risks. The trader makes use of a cash flow hedge or the fair value method in hedging. This results in a considerable reduction in risk.
POSITION TRADING IN FOREX
Position trading depends on your overall exposure to a currency pair. The exposure to a currency pair could help you a lot in position trading. This is really helpful in capturing short term market moves as in this type of trading, you stick to certain positions for days or even weeks. In such trading, a combination of both technical analysis and fundamentals analysis is done to arrive at the important decisions that are helpful in trading. Such trading analysis often refers to looking at monthly and weekly price charts, while making evaluations of the market. Longer-Term analysis is used by an advanced trader to trade long term positions. Longer-Term positions can be profitable if you have the patience to trade.
THE FOREX TRADING TECHNIQUE – OPTIONS
You could take to Forex options trading for different reasons. Through this, you could restrict your lesser important risks. It could result in losing only the premium that you paid to buy the options. But on the other hand, options trading has unlimited positive potential. You could make use of FX options trading to hedge open positions that you hold in the Forex cash market. This is tremendously helpful as it helps to make trades based on predictions about the market’s conditions on economic, political and other related grounds.
Scalping mostly refers to short-term trades for a few pips, making use of higher leverage. The best possible way for these trades to be conducted is with the help of a news release and other supportive technical conditions. The trade could last for a few seconds or a few hours. As a new trader, you might start with scalping, but it would not be long before you find losses if you do not have the correct tools or discipline when trading through scalping. As this strategy is risky, it is always good to do it in conjunction with your overall trading position. Scalpers are a forex broker’s dream and generally, traders will trade the major support and resistance levels. Scalping involves shorter time frames and the platinum trading system has a strategy that can guide you on buy or sell levels. Scalping is generally for day traders who day trade using short-term market analysis and can be a risky advanced trading strategy.
Here at Platinum, we approach the trade market like professionals. Beginners too often try to make money quickly in the market thinking it will be a get rich quick scheme. All the traders from Platinum know this to be false and work with our clients progressively to help them reach their goals.
All of our mentoring is conducted entirely on a personal basis, 1-on-1, and provides individuals with the experience of interacting with a professional trader every week. Remember, trading is a marathon, not a sprint, riskless to make more. That is the Platinum Motto.
This is an example of our Methodology in action with a trading opportunity on the Euro/Dollar pair. Everything is clear, concise, and set out directly in front of you.
HOW TO TRADE EUR/USD THROUGH THE TRADE WARS
Technical Point of View on the EUR/USD
This is a trade that filled on Friday 21st September, we can see from the chart it was a breakout strategy. It was based on the exhaustion of the USD Bulls, and the trade is still in progress and doing very nicely.
Advanced Forex Trading Strategy -Break Pull back and Continuation.
This advanced forex trading strategy is used in trading forex, Indicies, and Commodities.
This strategy is used at the end of a trend. In the example below, you can see that the euro i.e., EUR/USD is stuck in a consolidation or distribution range at the top this advanced strategy can only be implemented once we have a daily candle close above the range.
This may seem a little complex to begin with, but once you have practised this advanced trading strategy a few times, you will get the hang of it. Trading a Breakout, pull back, and continuation can make you over 5000 pips on just six Currency Pairs.
Remember, when you are trading the six major currency pairs, you should always bear in mind the market co-relations. So, when trading the euro always have your dow and dollar index chart open. If you are trading the Aussie dollar, then the two most important charts you require are Gold and Copper.
At Platinum Trading Academy, we will give you all the tools necessary to implement your advanced forex trading strategies and remember when trading BPC the following rules should be taken into consideration.
· Always Plot your Fibonacci for getting the appropriate entry
· Always use a daily time frame and work alongside institutions, not retailers
· A BPC Trade is a breakout so define your trend prior to taking the trade
· Use the appropriate Stop loss for the trade, which is 40 pips and your aim should be around 100 pips for this kind of trade.
Always remember Fundamental move the markets, technicals give you entry points, and logical should confirm your trading entry. Hence, we always say the perfect trading is a combination of Fundamental, Technicals, and a trading system or trading strategy.
This is a beautiful example of how Platinum’s analysis works and how it can work for any client that joins us.
The status of this trade:
EUR/USD – Wait for a breakout of 1.1740, then on the Pullback go Long with a 40 pip stop loss and a target of 1.1850
21/09/18: Trade has triggered
24/09/18: Trade has reached over 50 pips profit, move stops to break even and partial position out.
HOW TO BECOME A PROFITABLE TRADER.
If you are a new trader and would like to learn how to trade, then sign up today to our 2-day free Foundation to Forex Trading Course. We have just introduced this, as in the last month we have had a lot of inquiries on learning how to trade the financial markets. We can get you on the path of becoming a successful Financial Trader.
Hopefully, you have enjoyed today’s article, and have gained great knowledge about how to trade. We post a new Forex Trading Blog for Beginners every week, so subscribe to our notifications and stay updated!
See you soon!
The Platinum Formula:
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade
THE PLATINUM WAY
At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.
If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Live from the Platinum Trading Floor.