Forex Strategy Important Techniques
Price Action and Forex Strategy Training for You: That’s why you decided to radically change your life and become a trader. Be prepared, though, because many beginners in forex trading make similar mistakes when getting started. Whether you are very optimistic and think you can become a millionaire in a few days or you are completely pessimistic and think that only smart people can work in the forex market, as usual, the truth is somewhere in the middle.
The first and most important point is that anyone can become an entrepreneur and have a successful career. The second point, you have to learn a lot. You cannot go through the learning process, because there are no magic ways to make a profit while you do nothing.
Just like any business, new forex traders have to do a lot of work to reach a stable and dynamic target and income. Fortunately, there are expert advisors and brokers that can help you avoid the major pitfalls along the way to a successful forex business.
With the help of expert advisors and brokers, after conducting several tests and experiments, you can choose a method that suits you.
Important tip for all beginners: they work and they are free at the same time! These are market transactions. Don’t trust scammers who claim to have a business strategy to sell you. Reliable brokers never sell a win-win strategy, because they know that there is no such thing.
Instead, they suggest that you calculate all the risks, test each new trading method, and recommend specific indicators to analyze the effectiveness of the methods. For example: The broker may offer software to improve your trading conditions. Stick to such companies, because they know how the forex market works.
What is the forex market strategy?
Every successful entrepreneur has his own strategy that he follows. Don’t believe those who say they work based on their economic sense, because that’s not how they work. Even the simplest strategies have a basis in the forex market and are at a level of support or resistance that is set at this level by buying or selling a currency pair.
Some strategies rely on fundamental analysis (news and economic events) or technical analysis (watching charts and indicators) in trading systems. Many experts have some simple ways to combine fundamental analysis with technical analysis (both technical and fundamental). Some traders go further and try to expand their strategy. However, beginners should stick to working methods and trading methods that have already been tested by thousands of traders.
The basic principles of any forex strategy
As we said in our advanced forex trading course, almost all strategies fall into two categories:
The first category: When the trader sits in front of his screen and looks at the trading signals to see if he is going to buy or sell. Then he waits for the next opportunities to trade.
The second category: the trader uses or develops a special algorithm (called a trading advisor or robot) which automatically finds suitable trading signals and waits for them to be executed without the intervention of the trader. In this way, human emotions are completely removed from the work process. Many beginners use automated strategies.
When a trader is waiting for a time to buy (support) or a time to sell (resistance). Identifying the correct point (resistance or support) is the first skill that you must acquire as an investor. In short, this skill is easier than you think.
Remember that people who trade in areas of support (buying) are called bulls (buyers) and similarly, those who trade in areas of resistance (sell) are called bears (sellers).
What are the components of a good forex strategy? Does it have any?
There are many forex trading methods to choose from, but they all consist of the same basic components that traders must consider. Select a currency pair. It is impossible to trade multiple currency pairs at the same time. 85% of forex transactions are traded in these seven currency pairs.
: EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/CHF
Determining the order size for the enterprising trader;
Defining entry point rules: The trader must select a short or long position.
Determine exit points: set a time to exit to avoid losses.
Trading at points of resistance or support
Choosing manual or automatic trades with the help of software such as MT5 MT4 (MetaTrader)
Now that you know the basics of forex trading methods, it’s time to check out the 5 best forex strategies that work.
1.Price fluctuations H: Play in areas of resistance and support
You choose to buy or sell a currency pair to become a bull or a bear; However, there are traders who can trade by analyzing the behavior of bulls and bears. In this method, it depends on price fluctuations or movements, which is called naked trading, because it happens without any indicators.
When you choose this method, you should analyze the behavior of bears and bulls. If your analysis shows that the bulls are in control of the market, you buy (sell pressure). If the bears are in control of the market, you sell (buy pressure).
If you need to learn to trade without using market indicators and indicators, then trading based on price fluctuations is the best method for you.
A good way for traders who value their time.
This is easier than the other strategies.
the negative side:
Expert guidance is mandatory.
Specialized knowledge is required for success.
This method is popular among beginners.
2.Bargain position: For those who have they can wait
If you plan to stick with your trades for the long term, this method is for you. Position traders trade on daily or even weekly time frames. Those interested in this method usually rely on retail sales (NFP) (jobs survey), GDP, and fundamental analysis in general. Technical analysis is applied when entering the market.
It doesn’t take long.
It is less stressful.
Chance to earn 1 to 5% profit
the negative side:
Uses fundamental analysis (following news and events).
The loss limit is wide, so you need a liquidity fund.
Some trades have little profit.
3.Volume: The Art of Preservingyou deal
This mid-range method allows traders to hold their orders for weeks and days. People trade on 1 to 4 hour time frames. Traders who trade based on volatility have to take a single unit movement, which is called volatility. Swing traders should learn the concepts of resistance, support, moving averages, and candlestick patterns.
It is possible to have a full time job at the same time as trading.
You earn an annual profit.
the negative side:
Big trends are ignored.
There is a possibility of nocturnal hazards.
4.Day trading: when you need money urgently
This short-term method is very fast. People trade within 5-15 minutes. The biggest problem with day trading is intraday volatility. Traders should operate in the most volatile conditions. It has nothing to do with analysis and long-term transactions. The trader only follows daily events (a short position) and they use this method for the entire transaction.
positive side :
Earning money is easy most days.
There are no overnight risks because you close your trades during the day.
the negative side:
It is stressful because you are constantly checking the market throughout the day.
If you slip, you will have big losses.
The opportunity cost is high.
5.Transfer method: Transaction in a short period of timea period
Traders enter the forex market in a short period of time by increasing the price and setting a loss limit, and they always exit the market in a high period of time.
positive side :
High profit potential ranging from (1-10) percent
The probability of losing is less, because the time period of being in the trade is short.
the negative side:
Few traders succeed in this method.
A trader must know many rules of time frames.
Real example of consistent forex method
Most traders use the existing method. A market client named Jack shared his trading method a year ago. Use the indicators provided to calculate the average movement of the USD/EUR currency pair and observe the movement process of these pairs. Then this pair will only trade at a certain hour for the next few days, to make a profit.
Is scalping suitable for every trader?
In fact, 90% of forex transactions are done in a fictional manner. Buying and selling is the basis of daily forex trading, which is quite logical, as traders use the necessary currency exchange. In the 80s and 90s of the last century, traders could not trade a currency pair, only banks and certain institutions with a capital of $60 million or more could do this. However, today it is possible to become a trader and make quick purchases and sales.
Market experts do not recommend speculating or quick buying and selling for beginners, basically, speculation takes a long time and not every trader can make money from this method, but you cannot deny that speculation is really effective as long as you can use it he-she. This is a reliable trading method, but you get in and out of the forex markets multiple times a day. It’s a bit crazy, but your profit is guaranteed. However, the profit margin is fixed and very small.
It’s just a rule that you should scalp on a better day. You can ask forex brokers how to scalp them successfully. For example, AMarket gives traders the opportunity to use the scalp from day one.
We did not include scalping in our top 5 forex trading methods because you need to understand and feel the market in order to become a skilled scalper, however young traders should not rely on this method.
method Another high raj in the forex market
Bladerunner For each pair and framework, the time is right and belongs to the actions associated with the set of changes in price behavior.
Daily Fibonacci Axis: Includes both Fibonacci expansion and correction programs.
poly band bounce:: depends on a combination of confirmation signals.
Pop and stopWhen investors chase prices when prices are rising.
long break point a period Investors buy based on charts and price peaks and sell at lows.
The four-week rule Oh .. you: One of the simplest methods of mechanical trading. Buyer buys at the highest point in 4 weeks and sells at the lowest point in 4 weeks. These points maintain their position in the forex market.
Buying high and selling high is a short-term strategy that is driven by volatility.
If you are interested in these new strategies, you can ask your broker about them. Brokers like AMarkets can provide special assistance to investors who do not yet know how to use indicators and read trading charts.
When the strategy Do you want to exchange HiForex?
Many beginners ask when they should change their method because the forex markets are very volatile. The method that worked a few months ago may not work now, especially when the profit and loss ratio is unbalanced and bad.
Before actually changing your software, take a look at our checklist, as it has a few points about your needs:
If market conditions change or evolve, the direction of your chosen currency pair will change every few days, months or weeks.
A thorough understanding is required to understand how to choose your trading method and especially your expected losses. Therefore, before any method, learn the rules well.
Important tip for beginners: change your method every 3-4 months (unless you are constantly losing)
Diversify your investment portfolio and trade in different ways until you find the most suitable one.
The final recommendation rather than the conclusion Get:
There are hundreds of ways in forex. However, not every method can be recommended to everyone. In short, each investor must choose his own method. Beginners should know that forex trading is based on trial and error and expert advice (whether manual or automatic). Diversify your investments, try different methods and finally choose the most suitable trading method that suits your needs.
source: Iran Stock Exchange Online