Undoubtedly, in the last few years, a handful of jobs have appeared on the Internet, and thus opportunities for great earnings for many enthusiasts worldwide. Perhaps the most well-known and profitable online job, among others, is Forex trading. It represents trading with foreign currencies on the Forex market.
All experienced and successful traders know that one of the most important and most deserving factors for success in the forex market is choosing a quality trading strategy. It is perhaps the most excellent for achieving long-term success.
For this particular reason, we have decided to present you with the currently best forex trading strategies that will significantly benefit you in achieving your goals in the market. Let’s start with the most effective approach, shall we?
#1 London breakout strategy
The famous London breakout strategy is known as the most popular Forex trading strategy nowadays for several reasons. First of all, for those who are still unfamiliar with this strategy, it refers to a day trading strategy, and it strictly aims for utilizing the trading range before the London session gets opened.
Traders also know it as the London daybreak strategy. It became extremely popular because it’s considered one of the most straightforward trading strategies that are suitable for both beginners and experienced traders.
#2 Scalping trading strategy
Another prevalent strategy in Forex is Scalping. As you may suggest, Forex scalping stands for a day trading style that is used by Forex traders who are buying or selling currency pairs using a brief holding time, attempting to make a good series of quick profits.
This type of Forex trading strategy can potentially be very profitable, as other timeframes of trading. Most usually, a scalper is the one who’ll look to create in the region of five to ten pips per trade. For those who aren’t familiar with the term, “pips” represent percentages in points,
#3 Swing trading strategy
When it comes to the Forex swing trading strategy, all traders should remember that it represents the midpoint between the day trading methods and long-term trading methods. The main goal of the swing trading strategy is to capture gains in a given currency pair over a certain period, which can be just a couple of days to a significant number of weeks.
In short explanation, the Swing trading strategy is perfect for those traders looking to make smaller gains in the short-term trends and cut losses much faster than others.
#4 Day trading strategy
As the name suggests itself, a Day trading Forex strategy represents a short-term strategy that is focused on buying and selling various currency pairs within one trading day. Usually, Day traders would place a considerable number of forex traders per day and then close them out at the end of the day.
They will instead do so, then hold positions overnight. It would be highly beneficial if you kept in mind that the liquid currency pairs’ price fluctuations can provide plenty of opportunities for doing day trading. Therefore, they’ll most likely search for currency pairs that are highly volatile and highly liquid.