Tuesday 19 March 2013

What are strategies?

Well, there are a lot of strategies available on internet, mostly traders make their own trading strategies, according to their trading style, but in my view, the most popular strategies are only a few, in which most popular strategy is "SCALPING". 

Scalping is the most attractive and useful strategy I have found in forex trading, but I will not recommend anybody who is new in forex market. This is because it is very risky strategy. In this strategy you take only a few pips in profits, you don't wait for more, usually traders do it in neutral market trend, or sometimes traders do it when they see the market is moving between 20 to 30 pips, I personally do it while the market is moving between 20 pips. I don't wait for market rise up or fall down, when I see 2 to 3 pips in profits then I close the order, I usually try to swim according to stream, and it is better.

Other types of strategies are long term, short term, inverse trading, reverse trading, medium terms etc. These terms of strategies are popular, but I would like to inform my readers that read and learn all the strategies, but use them in demo account first, and after using them, try to memorize them, and you should be a sharp mind if you are trading in real market, because the real market involves your own money, and if you are trading in real market then you should prepare your mind for any kind of market bounce or reverse. 

Learning several strategies and changing them according to market trend is recommended. It will get you near to success and you will be able to understand the market trend. Although understanding market trend is not an easy task to do, but it will become easier day by day. 

In the short term you can be dependent upon news, usually I have seen that news impact on market partially and the impact usually reverse if the buyers / sellers are strong. So at that time short trades are recommended according to market trend.

In the long term, you open order according to signal and use big targets, in which you use trailing stop as target one to secure your orders and capital.

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