Pretty much every success story you have heard about had some sort of strategy behind it. It’s just a way we humans really categorize our obligations, it truly gives us room to take one thing at a time, massively increasing our productivity.
Like any other activity Forex also requires quite a lot of analysis and thinking before you actually commit to a trade. Forex strategies have been existing ever since the art of speculation has come to be. There are quite a lot of strategies that claim to be the best ones out there, but is it the truth? In some cases yes, some strategies tend to be better than others, but it all boils down to the trader who is utilizing that Forex strategy. So what do you say we give a quick look at some of the best ones out there and help you formulate a decent plan?
Economic data and News releases
Currency is tied to supply and demand, that is something we all know, pretty much everything is priced that way. Hence, we have constant changes in price, but what exactly dictates these supply and demand changes? Well, pretty much everything when you think about it. And where do you find out about everything? In the news of course. Every day, there are hundreds of events happening all over the world. Sure it may seem impossible to keep track of all of them, but this is where Forex shines. You just have to focus on the currency pair you are trading. For example, a minor news piece about India is nothing of your concern if you aren’t trading Indian Rupees. Basing your assumptions on the news and judging the price changes through that, is the most commonly used Forex strategy out there. In fact, it has been proven many times to be a Forex strategy that actually works.
It’s easy peasy lemon squeezy. You listen to the news, find out that a huge disaster is going to happen to the USD, you sell immediately, simple as that.
So you’re a person with quite a lot of time on their hands and tend to be quick on your feet as well? Oh, and you’re looking for the best Forex strategy ever? Well. welcome to Forex Scalping, let me introduce you guys.
Forex Scalping is something that requires quite a lot of attention but could be the most reliable source of profits as a trading strategy. This requires that you monitor the prices within small amounts of time, like a day or so and act immediately when your profit margin is met. You can’t get really involved with the investments here, once your profit margin is met, you have to sell, there’s no holding back. Sure the profits will be a bit small, but over time that bad boy will build up and get you that Maybach you’ve always wanted. Scalping is proven to be one of the best Forex trading strategies available to traders right now, challenging strategies like day trading and swing trading.
A trailing stop is a very good strategy that helps scale your profits and losses on a more realistic level. A trailing stop may not be the best Forex trading strategy for consistent profits, but it is very helpful to manage the profits and losses to a level that you can handle.
For example when you buy a currency pair, you set a stop-loss, which helps you manage the losses if the price of the asset goes too low, it will automatically withdraw the position to save you some money, but you can also put in a take profits cap, which helps to withdraw the position once the asset reaches a specific price, this helps to minimize the risk of losing potentially good profits.
A trailing stop helps you scale those caps. For example, once a currency price rises above a certain threshold, it’s already unprofitable for you to keep the old stop loss order, you will need to increase it. Thankfully many brokers provide this service which has turned into a solid strategy at this point.
Trade during interest rate changes
Interest rates are something we all dread. it’s something that attracts us to banks and something that makes us stay away as well. However, the interest changes can have a significant impact on currencies as well. What usually happens is that a country with a higher interest rate tends to attract more investors, because of the larger profit margin, which in turn makes their currency rise against a country who would have a lower interest rate.
This is a proven Forex strategy that actually works, and is adhered to many times by the most seasoned traders. You can seriously predict quite a lot through just finding out about the interest rate of a specific country.
Trading platforms for Forex strategies
What’s really good about Forex is that it offers more diversity than any other market. With every broker, you will get a different story, a different service and a different approach to trading.
But there aren’t only brokers involved with your trading strategies, most of the times its the influencers and traders themselves that can affect your style of trading. For example, you can follow and adhere to some trader strategies on the Ayondo platform,
or just do some research to find the best ones on social media websites like Twitter or Facebook. Most of the times you’ll be able to find good tips of Quora as well.
Binary Options trading strategies?
Binary options are considered as something resembling gambling more than trading. However, this doesn’t mean that there could be some type of strategies hidden within the gaps as well.
Since the orders on binary options are short-term you truly need to be an expert to make an exact guess whether the price will go up or down. The small fluctuations and spikes are rarely documented, but it doesn’t mean that its impossible to make a guess regardless of the information deficit.