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Jun 23, 2021 at 9:41 pm #16829Somrat4030ParticipantJun 23, 2021 at 9:41 pmPost count: 6
Forex trading requires putting together multiple factors to formulate the best trading strategy that works for you. There are countless strategies that can be followed, however, understanding and being comfortable with the strategy is essential. Every trader has unique goals and resources, which must be taken into consideration when selecting the suitable strategy.
There are three criteria traders can use to compare different strategies on their suitability:
1. Time resource required
2. Frequency of trading opportunities
3. Typical distance to target
There are several types of trading styles (featured below) from short time-frames to long time-frames. These styles have been widely used along the years and still remain a popular choice from the list of the best Forex trading strategies in 2021. The best Forex traders always remain aware of the different styles and strategies in their search for how to trade Forex successfully, so that they can choose the right one, based on the current market conditions.
1. Scalping – These are very short-lived trades, possibly held just for just a few minutes. A scalper seeks to quickly beat the bid/offer spread, and skim just a few pips of profit before exiting and is considered one of the most advanced Forex trading strategies out there. This strategy typically uses low time-frame charts, such as the ones that can be found in the MetaTrader 4 Supreme Edition package. This trading platform also offers some of the best Forex indicators for scalping. The Forex-1 minute Trading Strategy can be considered an example of this trading style.
2. Day trading – These are trades that are exited before the end of the day. This removes the chance of being adversely affected by large moves overnight. Day trading strategies are common among Forex trading strategies for beginners. Trades may last only a few hours, and price bars on charts might typically be set to one or two hours.
3. Swing trading – Positions held for several days, whereby traders are aiming to profit from short-term price patterns. A swing trader might typically look at bars every half an hour or hour.
4. Positional trading – Long-term trend following, seeking to maximise profit from major shifts in price. A long-term trader would typically look at the end of day charts. The best positional trading strategies require immense patience and discipline on the part of traders. It requires a good amount of knowledge regarding market fundamentals.
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