THE BEST FOREX TRADING STRATEGIES TO USE IN THE MARKET FOR CONSISTENCY
The magic word or the most commonly sought object in the world is the Holy Grail. In the financial world, everyone is looking for that one forex secret or perfect forex strategy that can yield the one forex trade to turn their lives around.
The reality of forex trading begins with discipline. When you consider financial trading as a hobby, it becomes a hobby. Instead consider financial trading, or forex trading, as a business.
Before we go into successful forex trading strategies, we must understand that there are. Having a strategy in forex trading is key, as a forex strategy will enable you to stick to a plan and not go off the rails so to speak. It will provide you with more confidence when entering into trades and enable you to maintain discipline throughout.
PICKING THE RIGHT STRATEGY TO FIT YOU BASED ON YOUR LIFESTYLE
There are many types of strategies available to people, we can split up strategies into short term trading strategies and long term trading strategies. It’s important to understand market conditions when deciding which one to use.
- Scalping – This is only a forex trading strategy we would suggest for the experienced trader, the reason being that these trades are very short term. They can be seconds long, up to minutes but very short term, this means you will be taking many trades in a day.
- Day Trading – A day trading strategy is still a short term, but these trades last much longer then scalping trades. These trades will last anywhere up to 24 hours and are monitored on the shorter time frames til profit is hit.
- Swing trading – Swing trading strategies are used over several days to maximise the amount of profit taken in a position. These are to be monitored on the longer time frames.
- Positional trading – This is a type of long term trend following which works if sufficiently large enough stop losses are applied. It will also require a good knowledge of fundamental analysis.
Forex Daily Chart Strategy
Many of the best forex traders will use longer time frames such as the daily, the reason for this is due to less daily fluctuations and more potential to maximise profits. On the Platinum Forex trading course, we implement daily charts into our training.
- Less leverage and larger stop losses: As you will be trading on large time frames, you need larger stop loss, therefore, smaller position size to maintain risk.
- Locate the entry: We must find the longer market trend to identify market direction. One way to do this is by observing the overall trend direction and pullback points.
- Stay the course: It requires patience to use this strategy as it can takes days for your trade to come to fruition. Stick to the plan and don’t get drawn in too much.
There are many ways to learn forex trading, and with our Platinum Trading course, we will be taking you through all the strategies mentioned in this article.
Forex Weekly Trading Strategy
A weekly trading strategy follows the principles used in the daily strategy however with a weekly candle it provides far more data. This is of course because it contains the fluctuations of 5 daily candlesticks in it. This strategy requires plenty of patience as this strategy can be drawn out of a couple of weeks. The stop losses will be much larger to allow for the size of the candle and the movement involved.
The Role of Price Action Trading in Forex
The best forex traders use price action trading and advanced technical analysis. You can use these to either trend follow or counter trend trade the market. Both techniques will be taught on the forex training course.
With technical analysis, the most important concepts are support and resistance. This helps us indicate where the market will bounce up or down, based on the historical data on the chart. Support is the market’s tendency to rise from a price level and resistance being the opposite when the market falls. We can also call these supply and demand levels.
When the market price comes to recent lows, buyers will want to buy in as it means the price is low and vice versa when the market goes to highs, sellers will want to sell when the price is high.
It’s an important concept to understand for any trader and something that will be emphasised to you on the trading course here at Platinum.
Counter Trend Strategies
Again this is a concept we apply when we approach various day trades when it comes to the forex market, the reason for that is because trading the trend is more inclined to longer-term strategies.
When it comes to counter-trend trading, it’s important to hold tighter stop losses and profit targets as you won’t expect the market to move as much against the trend as you would when it’s moving with it.
These are just a sample of the forex trading strategies applied here at the Platinum Trading Academy, all of the above is provided in our curriculum with our forex trading course. There are many different strategies, and we will assist you in choosing the correct ones to fit around your day and the most consistent for reaching your profit targets.
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.