Are you interested in becoming a very successful Forex trader and thinking about making trading a profitable business? If so, you must understand what the essential steps to make it come true are.
Forex trading refers to exchanging foreign currencies in decentralized and most liquid financial markets in the world right now. The “Forex market”, to be precise. It’s clearly among the most popular online businesses that generate significant profits nowadays.
Trading can be challenging and fun once you’ve done all the necessary steps like reading broker review before choosing one, practising with your demo account, reading and upgrading your knowledge daily, finding the best strategy for your trading.
But what if you haven’t found the right trading strategy that will make you successful and rich in the long run? If you are still looking to find the right trading strategy for you, we’ve prepared the TOP 3 plans you should consider.
#1 Trend trading strategy
Traders who choose to use the Trend trading strategy assume that security will continue its movement in the same direction as it’s trending at the moment. This kind of strategy often includes a take-profit or stop-loss provision to avoid potential losses and lock in a profit if it comes to the trend reversal.
Traders who are using the Trend strategy are often intermediate and long-term traders. They are using price action and numerous other technical tools to determine the direction of the trend and when it may shift.
The most profitable Trend strategy
To cut a long story short, perhaps the most profitable Trend strategy is the “Profit Parabolic”. It is based on a Moving Average. It’s referred to as the Universal one and recommended by many professional traders to be the best Forex trading strategy for consistent profits.
It uses the exponential moving averages (the EMA’s), the standard MT4 indicators, and the famous Parabolic SAR used as a confirmation tool.
#2 Scalping trading strategy
A scalping trading strategy is the best solution for short-term traders because it is precisely like that – extremely short-term. Forex traders who choose this type of strategy aim to enter and exit positions in a matter of a few seconds (or minutes).
On an average trading day, scalpers often carry hundreds of transactions to make a significant profit. The focus is on technical analysis and price action only. Any elements of fundamental research are ignored in this case.
When we speak of short-term strategy, it’s essential to know that it’s often used for the commodities markets and forex, as the most popular currency pairs such as EUR/USD and EUR/GBP.
#3 Position trading strategy
Unlike scalping and day trading, the Position trading strategy is strictly focused on fundamental factors. Position trading doesn’t include minor market fluctuations since they are not affecting the more extensive market picture.
What is crucial about this particular strategy is that its traders are monitoring political developments, fundamental factors and central bank monetary policies to identify cyclical trends.
The profit targets in these trades are likely to be at least a couple of hundred pips per trade. Position trading is reserved for patient traders since their position takes months and even years to play out.
As a resume, what is essential to know is that success depends only on your ability to be patient, persistent, and confident enough not to give up when you encounter obstacles. Trading is challenging and exciting.
It would help if you were passionate about it, learn a lot and practice daily. In the end, you’ll see how it all pays off! Good luck!
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