With trillions of trades conducted every day, Forex
trading offers ways to leverage the market to make substantial profits. As a
range of factors influences the Forex market, it is important you understand
how specific strategies work, and what are the pros and cons of each one.
Depending on your personal circumstances, some strategies
will suit you more than others. You can find more strategy ideas at DailyFX, and
the more strategies you know, the
better your trading profits will be.
This strategy is very similar to Trend Following but adds fundamentals to the technical approach.
Position Trading is a longer-term trading strategy, where you take into account
the fundamentals such as GDP, NFPs, etc to give your trend analysis a bias.
Using this strategy, you will trade on a daily or weekly
basis. This allows you to time your
entries to trade at the position you want. If your analysis is solid, you
could enter a new trend earlier on and reap the benefits from it.
Position Trading does not require much trading time.
This makes it a good option as a hobby or second income stream.
Swing Trading involves you monitoring the market
looking to capture a single move or swing.
To master swing trading, you’ll need to understand the
Many swing traders often use the 1 hour or 4 hour timeframe to trade. Often, they will:
Similar to Swing Trading but at a faster pace, you tend
to trade on 5 and 15 minute time trades. The aim is to capture intraday volatility. To make high profits, you trade in the
most volatile session of your instrument.
Aspects that concern a Position Trader is no use to you as
a Forex Day Trader. Instead, you’ll
identify a long or short bias and
trade that position.
Forex Trading can be very profitable, providing you
have mastered the right strategy.