Forex Trading Strategies Guide For 2021

Do you know how to stay disciplined and focused when trading? The easiest way to do this is by sticking to a trade strategy which is tested and well-reasoned. This strategy alone will give you the confidence you need to stay committed and disciplined. But how you can be sure you chose the most profitable Forex trade strategy?

Things to Consider when Picking a Trading Strategy:

There is no one answer to this question because this always depends on the individual trader in question. You have to first evaluate your personality to see what suits you best. An important factor to consider here is the trading style. These can be long-term and short-term, and the best traders will know how to use both trading styles to make successful trades.

What are some Trading Strategies?

  • Day trading: These are conducted within a single trade day. So, you cannot be impacted by huge price moments overnight.
  • Scalping: These trades are short-term, even for a few minutes, where traders seek to beat the offer spread and make small profits before exiting these.
  • Positional trading: These are long-term where you seek to make big profits from huge price changes.
  • Swing trading: Here, trade positions can spread across some days or weeks when traders seek to make money from short-term price changes.

Top Forex Trading Strategies:

  1. 50-Pips a Day: This is a recent Forex trading strategy that leverages early market moves of specific liquid currency pairs; for instance, the EURUSD is one such pair. When it is 7 am GMT, traders will place 2 positions or opposite pending orders. If any gets activated because of price changes, the other gets cancelled. Profit targets are set at 50 pips while stop-loss is between 5-10 pips for managing risks.
  2. Forex Daily Charts Strategy: The more experienced traders use daily charts and prefer it to short-term strategies. These can guarantee 100 pips daily because of their longer time-frames. There are no guarantees in trades but profit potential is higher. This strategy is based on locating the trend, staying focused and using more large stop-losses and less leverage.
  3. Forex 1-Hour Strategy: This is where traders can use the 60 minute time-period; the best currency pairs for trading are EUR/USD, GBP/USD etc.
  4. Forex Weekly Strategy: While some traders prefer the intraday trades due to volatility, weekly strategies are preferred by others as these are stable and flexible. Weekly candlesticks offer more data and such strategies are designed to avoid too many risks.
  5. Trend Following Forex Strategies: At times, market may move above the resistance or below the support to begin a trend. If market moves to a new low, the buyers will start holding off. Traders will start selling in panic or short selling since they feel that prices will dip further. This trend lasts until selling goes down and buyers start to believe that prices will not fall any more. So, trend following strategies enable traders to buy once the resistance has been broken through and sell when support has fallen through.
  6. 4-Hour Forex Trading Strategy: This is something like swing trading where you consider a chart for 4 hours to identify potential trades. Here, 2 sets of MA or moving average lines are selected to get the best outcome.
  7. Counter-Trend Forex Strategies: These believe that most breakouts will not become long-term trends. So, traders using this will try and get an edge from price tendencies to bounce off earlier highs and lows. Theoretically, this strategy assures the best trades but you must monitor the market and know how to manage risks. In order to help users to trade stocks, there are online guides like the aktien kaufen online test that provide the best insight on how to buy stocks. You can make use of it regardless of whether you have already traded stocks or whether you are still starting your first trade as a beginner.