Forex is the most popular and highest trading market across the globe. Every day thousands of people are attracted to Forex trading to gain quick money. This across the counter trading involving the major currencies is a bit tricky yet highly profitable trade, which needs a good understanding of the Forex trading. This can be seen by the percentage of people everyday, who lose their money in trading due to lack of proper knowledge and skills. This makes the other 5 to 10% of people gain huge profits. However, with a good observation, and learning of the Forex trading strategies, anyone can make profits or at least secure their hard earned money.
Early Trading Strategies
Through decades, experts have come up with various Forex trading strategies that can minimize the losses and improve the profits. With a little understanding of the basic strategies, one can secure their money, meanwhile improving the skills through practicing. Over and over, new Forex trading strategies are developed with the changing market conditions, rules, and experiences.
Various players like banks, financial institutions, brokers and training institutions designed their own strategies and provide a huge knowledge base for the new comers, yet all of those accept some basic strategies which are necessary to learn by anyone who intends to learn Forex trading. With the knowledge and practice of basic Forex trading strategies, and advanced concepts are introduced by the people who had hands-on experience on Forex trading.
Forex Trading Strategies: Some Examples
Let us have a look at simple to complex Forex trading strategies in detail.
- SMA: Basically the moving averages (usually two, fast and slow moving) are set to two different time periods, and when fast crosses the slow moving average, the trader can buy the Forex and vice versa. Depending on these fast and slow moving averages, the entry and exit point are determined. This is a simple strategy that is advised to the users with no knowledge about the Forex.
- Fibonacci Trading: By using Fibonacci levels in the Forex trading, the highest swing and the lowest swing are interpreted and the best price to buy or sell the Forex is calculated. Here, the best time to buy is when the Fibonacci is at the lowest level and vice versa. However, a good knowledge, and luck is needed to study the complex Forex trading strategies to gain.
Caution:There are more than 100 Forex trading strategies available for the new entrants and new strategies are adding to that day by day. This is because; no single strategy is good for all. Remembering this point, each user should learn the strategy, understand his own trade and requirement, and make his own strategy. To achieve this, the user may need to practice on with minimal risk, till he understands the Forex trading and starts playing with it. At the same time, the user should be willing to take the risk to lose some of his hard earned money in the process. But, experience speaks and may be after some time he might design his own strategy to turn it to millions.
