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Wednesday, 23 August 13:30 (GMT -05:00)



Foreign exchange market

Forex Trading Strategies – Recipes for Successful Trading


We are going to dedicate this article to FX trading strategies, which is specific trading algorithms allowing you to trade for profits.
 

 

 

 

This article will let you learn the following:
- what are FX trading strategies
- why you need trading strategies
- various types of trading strategies
- capital management rules
- how to choose a trading strategy
 
What is a trading strategy?
 
Any professional activity requires a certain plan. Professional traders need trading strategies to avoid reckless trading through:
- determining the entry and exit rules
- determining the money management rules
This leads us to believe that a trading strategy is a set of trading and money management rules, which are required to be followed at all times to show consistent results.
 
Why do you need a trading strategy?
 
Can you trade Forex without a trading strategy? Yes, you can, but this is going to lead to losses. It’s impossible to trade financial markets successfully without a profitable strategy! Indeed, trading is a rather complicated type of human activity, whatever those commercials say. Even if you get exclusive trading software with excellent features and intuitive user interface, this doesn’t necessarily mean that you are going to be a winning trader making money effortlessly. Trading Forex or any other financial market is a serious activity, which means it requires a serious approach. That’s why you cannot afford to gamble here, if you want to trade Forex for a living. You bet your money to win more money. Reckless trading is a sure way to losses. That’s why your trading needs to be planned and guided in a certain way. The best way is to get yourself a nice trading strategy and get yourself up and running with it.
 
Types of trading strategies
 
There are several types of trading strategies for FX.  For starters, they can be of 2 major types: those based on technical analysis and those based on fundamental analysis.
 

 

Strategies based on technical analysis imply using technical and charting tools to make predictions used to enter and exit a trade. For example, if we are talking about the “Victory” trading strategy, the best time to enter a trade is the situation when the price rebounds from the top of the sloping channel:

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There is another strategy. It’s called “20 points a day”. The trader gets a buy signal if the price breaks above the Moving Average and the signal ling of the Momentum indicator also breaks above the indicator’s central line:

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Strategies based on fundamental analysis imply analyzing daily macroeconomic reports to make trading decisions based on the data. Those reports are scheduled and released throughout the trading week, including unemployment rate, consumer confidence, interest rates, GDP etc. based on the data, traders make their trading decisions. For example, if the GDP report indicates a slowdown, the country’s national currency is very likely to get weaker against other currencies since this means a weaker economy. Or if the central bank raises the interest rates, this makes the national currency stronger.
 

 

For example, when the Federal reserve (USA) raised the interest rate by 0,25% during the latest meeting, this is made the U.S. Dollars stronger against other international currencies:

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EURUSD instantly dropped down, which means that the Euro got weaker against the U.S. Dollar as the U.S. Dollar got stronger against the Euro. 

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In this case, the task is to analyze the calendar, find major news, wait for the news, and trade accordingly.
 
Also, trading strategies can be divided depending on the trading approach:
Trading with the trend
Trading against the trend
Martingale strategies (double your bet each time you lose)
Strategies based on pending orders
Math strategies
Scalping strategies
Intraday, mid-term and long term strategies and so much more.
 
Money management
 
This is an inseparable part of any decent trading strategy. It makes up for 50% of success.
Money management is all about managing your capital wisely to avoid major risks and losses and being able to withstand drawdowns, which are inevitable since no trader can win 100% of the time.  

 

 

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Conservative traders never invest more than 1-2% of the entire capital in a signal trade. They think about saving their money first and multiplying it second.
Aggressive trader risk over 5% per trade on a regular basis. Some of them may even go all in, as poker players say. This is too risky and usually brings nothing good over the long term. So, avoid aggressive trading styles.
 
Why to choose a trading strategy for a beginner?
 

 

Practice shows that the best choice for most beginners is a strategy based on technical indicators with 100% clear algorithm and no ambiguous signals. For example, some indicator triggers a signal and the trader buys or sells the chosen asset depending on the direction of the signal.

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You can also invest of PAMM accounts to get passive income. For the purpose, it’s necessary to choose them wisely. We recommend using pro-rebate.com for investment purposes. Good trading and investing!

 

You are free to discuss this article here:   forum for traders and investors

 

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Bitcoin Sets New All-time High, Experts Predict Market Crash

Bitcoin is reported to have set another all-time high. In particular, the exchange rate exceeded $4000 per 1BTC. At the same time, more and more experts start predicting another crash in the Bitcoin market.
 

 

For those of you who don’t know, since early August, Bitcoin has already gained 60%. Which is even more amazing, the world’s number-one cryptocurrency has quadrupled in value since early 2017.
Publication date: 21 August 02:19 AM

Dukascopy Bank on Bitcoin Future after Bitcoin Split

On August 1st, 2017, the entire world of cryptocurrencies changed. The thing is that from now on, there are 2 forks of the world’s first and most popular cryptocurrency, which also enjoys the biggest market capitalization among its peers. We are talking about Bitcoin (BTC) and Bitcoin Cash (BCC). The split was followed by increased market volatility for both currencies, which was mostly of technical nature caused by the circulation of Bitcoin Cash rather than the classic supply and demand, experts say.

Publication date: 15 August 09:11 AM

Masterforex-V VIP Traders’ Performance. July 2017

The unbeatable FX strategies mentioned in a brand new book on the secrets of Forex investing by Masterforex-V keep on making both traders and investors richer. By the way, the yield in this case is way bigger than the one you can get by investing in bank deposits or any related low-income investments. The very essence of this kind of investing makes it possible to avoid poor and hasty decisions, thereby leveraging the entire process. By the way, VIP accounts have been among the top 10 accounts available for auto-copying at pro-rebate.com.

Publication date: 09 August 05:33 AM

UK Ready to Pay 40 Billion Euro for Brexit

The international expert community along with mass media keep on trying to evaluate the cost of the Brexit for the United Kingdom. The most popular version is that quitting the European Union will cost Great Britain around 40 billion euros. In particular, this idea is advocated by Deutsche Welle.

 

 
At the same time, The Sunday Telegraph claims that the specifics of the financial compensation to Brussels will become the catalyst for the Brexit talks. While referring to the high-ranking sources in the British government, The Sunday Telegraph reports that the government is ready to pay the EU up to 36 billion pounds, which is around 40 billion euros. This is the sum is intended to cover the UK’s financial liabilities to Brussels.
Publication date: 08 August 09:29 AM

Masterforex-V Expo Names World’s Best Brokers for Beginners in July 2017

Along with required knowledge and skills, the broker makes up the lion’s share of the trader’s success in the Forex market. That’s why choosing the right broker right off the bat is so important.

 

At the same time, most of the traders joining Forex to start making money often lack the required experience to make the right choice. On top of that, most of them are convinced that all the brokers are the same, which is why they ignore the significance of making the right choice and make this choice randomly.
Publication date: 08 August 03:54 AM

Bitcoin Exceeds $3300 Threshold

Bitcoin, which is the world’s first and most popular crypto-currency, started another strong rally a few days after it was split into 2 versions. According to Coindesk, the classic version of Bitcoin exceeded the $3300 threshold and set another all-time high at $3319. The thing is that the market capitalization of Bitcoin has been growing continuously ever since the mentioned split.

 

 
Publication date: 06 August 11:48 AM

Continuous Rally Shown By Crypto Currencies As Investment Opportunities

The phenomenal growth seen in crypto currency markets has become one of the leading tendencies of the year. Some of the crypto currencies have seen their value grow by 100%, 200% and even more. As for Bitcoin, which is the world’s first and most popular crypto currency, back in January 2017, it cost $1000 while in early July it cost over $2600.

Publication date: 29 July 01:00 AM

Alpari Increases Trading Turnover Up To $600,9 Billion In 6 Months

The international FX industry has recently been involved in a number of scandals. Against this background, we can only name a few companies with positive dynamics, efficient market products, and major license.

Publication date: 27 July 01:18 AM

Another Bitcoin Fraud Is Caught

Crypto currencies are controversial. On the on hand they give investors a decent investment opportunity. On the other hand, the may be way too risky. Often times, those are both market and even non-market risks, including fraud.

 

 
In some of the previous articles, we recommended you to start with a sound financial strategy and risk management before you invest even a penny in crypto currencies. We are not trying to say that those are bad investments. They can make you money if you really know what you are doing. However, you should be really careful about it since the advantages of decentralized and anonymous currencies may turn into disadvantages and loses for your wallet.
Publication date: 23 July 12:25 PM

Will European Parliament Help IronFX Victims?

Europe’s leading financial regulators have recently been founding them involved in various scandals. TheFinancial Conduct Authority (FCA) from the UK and the CySEC from Cyprus are some of them. The truth is, while those companies claim that they defend the customer’ rights, in reality they often take the broker’s side even though the broker may be playing dirty tricks on the customer.
Publication date: 20 July 03:19 AM