What are the First Things that Comes in ForexTrading?

First, we will be interested in the most common strategies, that is, those based solely on technical analysis. These turn out to be effective when it comes to investing in short periods or when operating from a tool.

The technical analysis provides, in fact, very valuable information on the way in which the price of an action is likely to evolve in the short, medium or long term. But, above all, it allows detecting some indicators that are generally the starting point of acceleration or a change of trend. Thus, taking positions on these indicators currently represents an effective strategy. In general, these indicators are the pivot points and the technical support and resistance levels.

It is also interesting to establish a strategy for trends limiting risks. These strategies simply require taking positions for an ongoing trend whose volatility is strong enough.

The Day Trading:

Day Trading is an investment method highly appreciated by Forex traders since it does not really require any particular skills or knowledge.

Its principle consists in carrying out a large number of small operations in one and the same day and closing all positions before the end of the session. Therefore, this investment method is profitable when a large number of small profits accumulate.

To achieve your Day Trading strategy, you must use important leverage . Therefore, it is essential to know how to interrupt your losses at the right time so that the total of your earnings exceeds your losses. The level of risk is rather important and should demonstrate prudence and above all reactivity.

The ideal would be to recover their profits at less than 2 or 3% of maximum profit and above all to interrupt their losses before reaching 10%.

The Carry trade:

The Carry Trade method is reserved for a more knowledgeable public, since it is a little more complex. This time it consists of using the difference of the interest rates of the currencies among themselves to make a profitable operation without taking into account the evolutions of the market.

In practice, this consists in actually buying a currency with a low interest rate to sell it again against a currency with a higher interest rate.

Before launching in this strategy of speculation, you must identify the currencies that present high and low interest rates, but you should also take into account the amount of the spread practiced by your broker so that this agent does not keep your profits.

On the other hand, Carry Trade requires consistent investment. For more on this, visit https://www.amarkets.com/education/ .

The Swing Trading:

The Swing Trading strategy is also an ideal investment method for beginning traders, since it does not require any specific knowledge or exhaustive analysis. Its principle is very simple and consists in speculating only on trends.

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