When it comes to the“legjobb forex strategia”, which can be translated in English as the best forex strategy, there will be no definite answer as some of the strategies will work or not depending on the type of the individual using it. This means that you will have to think carefully and find the right strategy that will work for you.
A famous strategy will sometimes not work for you and a neglected and deemed to fail one might just end up earning you a huge profit. Therefore, when picking a strategy, be sure you experiment using it. Here are some of the strategies forex traders commonly use.
How to pick the forex trading strategy that will work for you. Photo Gallery
Scalping
This means opening up a large number of trades individually that lasts only a few minutes and which only makes you small profits. When using this particular strategy, traders expect to gain 5 to 10 pips per transaction. If losses occur, employing leverage can worsen them but there are times when these can also give significant profits depending on the leverage used.
Will it work for you?
This would depend entirely on how much time you plan on putting into trading. This type of trading is a demanding full time job as it requires you to conduct constant analyses and place multiple orders. So, if you only have a little amount of time to trade after doing your day time job, this might not be the right fit for you but if you can commit to it full time, it will be suitable.
Day trading
This is a type of trading where you will be able to open and exit before the end of the same day the trading is done so that you will not be affected by the large moves that happen during the night and until next morning. These types of trades last for a few hours and the price bars will be set to one or two minutes.
Will it be suitable for you?
Day trading rules are harsher and unforgiving if you don’t abide by them and mistakes will cost you a lot, so if you are a person that always forgets certain things and makes constant mistakes, choosing this will only give you more losses and stress. However, if you can cope up with it, then it might be the suitable one to you.
Positional trading
Unlike the top two strategies, this strategy is a dictionary. It’s also one of the most profitable trends that forex can offer you. It involves holding a position for a long time between a certain duration such as a month and a year. If you become a positional trader, you will only have to look at the end of day charts.
Will it be suitable for me?
This strategy will be the best fit for you if you are a good planner that has the ability to predict the future market and if you can come up with great long term. But if you are not sure what might happen in the markets even those that are in the near future and has no long term plans,it’s better to choose one from the above strategies as you may experience losses.
Swing trading
This strategy involves holding a position for a certain amount of time from several days until up to two weeks. So it can be said that it’s a strategy that runs based on medium time frames. It helps you gain profit from short term price variations. If you are a swing trader, you might want to look at the charts every hour or so. Although it might seem short, it will make you commit most of your time to the market.
