3 Trading Strategies to boost your forex trading career

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BLOG OUTLINE

Section: Scalping strategy

Section: Trend trading strategy

Section: Range trading strategy

BLOG INTRODUCTION

Ever want to become a successful trader in the Forex market, but don’t know how? Use these simple and effective trading strategies.

In forex trading, experience is everything. Along with it comes profitability. There is no secret to becoming a top forex trader. You need to develop the right trading strategies and follow them religiously. Why? Because it has been estimated that 90% of all traders in online forex trading lose money. So why are the other 10% so successful? It’s because they have the right strategies to follow that they follow to the letter. Here are some forex trading strategies that you can apply in your forex trading career and make big profits from short and long-term trading.

SCALPING STRATEGY

Scalping is a high-frequency, short-term trading strategy that has been in use for centuries and is still used today. Traders who use the scalping method enter and exit the market within shorter periods. The profit targets are set up at the beginning of the day and are mostly traded with a tight stop-loss order. This is because it is an effective and efficient approach to trading, requiring little up-front investment, which means traders can begin utilizing this strategy immediately. As a trader, for you to engage in this strategy means that you need to have access to a fast internet connection.

It requires traders to have a good understanding of technical analysis and the ability to identify trends in the market. There are several different ways to execute this type of trade. The most common one involves placing small trades by purchasing or selling currency pairs within minutes of each other. As a trader, you need to be analysing the short time frame charts such as the 1 and 5 minute time charts. One disadvantage of trading as a scalper is that you have to closely monitor the market sentiments to make your decisions.

TREND TRADING STRATEGY

Trend trading is a forex trading strategy that involves the identification of and acting upon the current trend in price. To be successful at trend trading, a trader must be able to identify the prevailing trend, as well as know when to enter and exit trades. Trend trading is not for traders who are uncomfortable with high levels of risk. Trend trading applies advanced techniques that use different indicators and set of rules to decide when trends are about to begin and end, and more importantly when you should be getting involved in those trends.

Taking advantage of trends is one of the best ways to make money in the market. It’s all about timing and finding opportunities that other people don’t realize they’re missing out on. Trend trading isn’t for everyone. However, if you’re ready to take your trading career up a notch or two and start making real money for yourself. If you do this right, you don’t have to be right about the direction of the market, just what direction it is currently going in. If you’re wrong but it’s trending in your predicted direction, your losses will be controlled and small. And if you are lucky enough to be on the right side of a trend, then you will make a lot of money. Trend trading is a profitable Forex trading strategy. You can capitalize on this by using the trend-trading methods outlined in this article.

RANGE TRADING STRATEGY

Range trading is the most effective way to boost your Forex trading career. This strategy focuses on two key statistics: price and time. In this strategy, traders look for currency pairs that fall within established ranges over relatively long periods. The range in this situation offers the area in which the price can go at the highest range and also the lowest range. The highest point which the price reaches is called the Resistance area and the lowest point is referred to as the Support area.

Traders who employ range trading strategies open trades when the price is inside predetermined ranges, usually defined by support and resistance levels. Instead of buying or selling at market prices, they wait for the price to reach a predetermined level. This allows them to sit back and do nothing until the price hits the desired range.

The strategy is best used during periods of high volatility when prices are moving erratically since it allows traders to take advantage of considerable price swings without having to be right about the direction in which they will move.

Range trading is suitable for anytime frame, but it works best on shorter time frames such as 5-minute charts and 15-minute charts. It can also work on daily charts, but using it on longer time frames requires more patience, as it is slower than other Forex strategies that involve a greater number of trade signals.

TAKEAWAY

To succeed in Forex trading you have to learn the basic strategies for trending, scalping, and range trading. After learning them you should analyse the markets to create your own strategies. You must also pay attention to managing risks because once you start trading, you will face nothing but risk. Hopefully, this article will help you a new trader to get started on which trading strategy to begin with.

Nairobi School Of Forex

Nairobi School Of Forex

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Nairobi School of FOREX trading offers first-class and very comprehensive training programs to both retail and institutional clients in Forex Markets, Stock Indices, Commodities like Gold and Oil, from beginner level to advanced level

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