Forex Trading Strategies
All traders expects huge fast profits from trading forex and brokers will try to promote the idea of making easy profits every hour.
However, many forex traders will end up having losses especially when they just started trading.
It is true that Forex Trading (as well as binary options trading) can be very profitable and it can produce huge earnings but only for successful traders. In order to become successful, a trader must develop at least one good forex trading strategy.
Using a forex trading strategy must look very difficult but is not so hard. You can develop a simple trading strategy that’s easy to use even for new traders.
In this article you can read about several simple forex trading strategies that can be used by any trader. You can even use it for binary options trading.
The binary options market is similar to forex market and it’s becoming more and more popular.
Developing a forex trading strategy is one of the factors that will make you a successful forex trader.
You must continuously educate yourself and learn more about forex trading.
Trend Trading Strategy
All the successful forex traders will tell you: “the trend is your friend”. You can make profits when applying a forex trend strategy. This trading strategy is used very often because it’s easy to spot a certain trend. You must look for the price movement on a chart and it’s recommended to analyse a longer period of time and it should not be used for short term day trading.
Range Trading Strategy
When you use a trend trading strategy you must see a clear, massive sign of the trend but with range trading you just use support and resistance levels. Usually the price will move in a range, down and up between two levels. The top level is called resistance and the bottom level is called support. You can even draw a line connecting the support points and the resistance points. The patterns are repeating so you can even predict how the price will move so you can choose an entry and an exit point for a trade. Many forex traders are making profits using this quite simple trading strategy.
Breakouts Forex Trading Strategy
This trading strategy is based on the breaking of the support and resistance levels.
The forex charts are used for analyzing the price movement to see when the price will break a pattern.
The breaking of a support or resistance level is happening when the price will exist a certain range. Draw the support and resistance lines and wait for a breakout to happen.
When you think you see a breakout you should wait for a confirmation because many times the price breaks the support or resistance level for a short time then comes back.