Realjosh254
New Member
Have you ever felt STUCK trying to figure which forex trading strategies you should use? For example:
Should you be a day trader, swing trader, position trader, news trader, scalper, or a
combination of different forex trading strategies?
It can be frustrating, right?
Because you’ve seen traders make money with different forex trading strategies.
But…
When you attempt it, it fails you.
Now, don’t worry.
Because in this week lectures, We’ll share with you 5 types of Forex trading strategies that works and how to find the best one that suits you.
Sounds good?
Then let’s begin…
1)
Forex trading strategies that work #
Position trading
Position trading is a longer-term trading approach where you can hold trades for weeks or even months.
The timeframes you’ll trade on are usually the Daily or Weekly.
As a position trader, you mainly rely on fundamental analysis in your trading (like NFP, GDP, Retail sales, and etc.) to give a bias.
Also, you might use technical analysis to better time your entries.
Let’s say:
You analyze the fundamentals of EUR/USD and determine it’s bullish. But, you don’t want to go long at any price.
So, you wait for EUR/USD to come to Support before taking your position. Now if your analysis is correct, you could enter at the start of a new trend before anyone else.
An example:
Now, let’s discuss the pros and cons of position trading…
The pros:
Don’t need to spend much time trading because your trades are longer-term
Less stress in your trading as you’re not concerned with the short-term price
fluctuations, A favorable risk to reward on your trades (possibly 1 to 5 or more)
The cons:
- Require a firm understanding of fundamentals driving the market
- Need a larger capital base because your stop loss is wide
- May not make a profit every year because of the low number of trades
And lastly…
There’s a trading strategy called Trend Following (which is similar to position trading).
The only difference is Trend Following is purely a technical approach that doesn’t use
any fundamentals, this is the approach I use in my our personal investment account.
Should you be a day trader, swing trader, position trader, news trader, scalper, or a
combination of different forex trading strategies?
It can be frustrating, right?
Because you’ve seen traders make money with different forex trading strategies.
But…
When you attempt it, it fails you.
Now, don’t worry.
Because in this week lectures, We’ll share with you 5 types of Forex trading strategies that works and how to find the best one that suits you.
Sounds good?
Then let’s begin…
1)
Forex trading strategies that work #
Position tradingPosition trading is a longer-term trading approach where you can hold trades for weeks or even months.
The timeframes you’ll trade on are usually the Daily or Weekly.
As a position trader, you mainly rely on fundamental analysis in your trading (like NFP, GDP, Retail sales, and etc.) to give a bias.
Also, you might use technical analysis to better time your entries.
Let’s say:
You analyze the fundamentals of EUR/USD and determine it’s bullish. But, you don’t want to go long at any price.
So, you wait for EUR/USD to come to Support before taking your position. Now if your analysis is correct, you could enter at the start of a new trend before anyone else.
An example:
Now, let’s discuss the pros and cons of position trading…
The pros:
Don’t need to spend much time trading because your trades are longer-term
Less stress in your trading as you’re not concerned with the short-term price
fluctuations, A favorable risk to reward on your trades (possibly 1 to 5 or more)
The cons:
- Require a firm understanding of fundamentals driving the market
- Need a larger capital base because your stop loss is wide
- May not make a profit every year because of the low number of trades
And lastly…
There’s a trading strategy called Trend Following (which is similar to position trading).
The only difference is Trend Following is purely a technical approach that doesn’t use
any fundamentals, this is the approach I use in my our personal investment account.
