In today’s trading on the currency market traders use a variety of types of Forex trading strategies that can vary in time trading, used tools, the level of risk, as well as the trend. Each strategy has its own characteristics, is suitable for a particular trading style, it suggests the need for some or other trading conditions.
Talking about the variety of strategies with respect to time , allocate such as: long-term, medium-term, intraday, short-term, shortrange, Scalping, pips. Longer strategies are considered less profitable, but involve risks and much less, require less psychological stress, a greater ratio of Deposit and Margin.
The long-term is called a strategy when a trader holds a position open for a long time (from a couple of days to a month or more). This is the least risky of the system that do not require the adoption of instant solutions, with low psychological stress. But they require a large deposit, which will be at least 5-10 times higher than the Margin (the amount which is necessary to open, maintain position).
Medium system operate from 1 day to a week. They are characterized by the same properties as for the long-term, but here it is necessary to wait less. Intraday strategies involve conducting a transaction within a single trading day. The system is quite risky, as the outcome is influenced by market noise. Such trading allows a trader to follow the movement of prices, it is psychologically less stressful than Scalping, for example.
Speaking about the kinds of strategies , pay great attention to short-term systems. Duration of transactions in this case is from 1 hour to a day. This is potentially a highly profitable strategy, but they require a lot of experience. The advantage is that there is no risk of unexpected price changes, when the trader is not on the market, net – large indirect costs (spreads, commissions, services); considerable risk of short-term value fluctuations, the need for continuous focusing on a chart control.
Types of Forex strategies
Shortrange strategies are most attractive to newcomers, but they can quickly lead to loss of all funds. Working with such a system requires a great deal of psychological stress, gives you the opportunity to earn a small amount of points, but you can lose a lot more.
Scalping – a complex type of trade that requires great skill and a nice understanding of the market. Scalping involves making a profit in the minimum time spent in the position. Must be able to accurately enter the position, ensure good communication, the trader exits the position as soon as received profit at a rate of a few points. With such a trade necessarily need to remember about money management that will help to avoid losses.
Scalping Forex strategy – a high-yield systems that involve the commission of a huge number of transactions in order to make a profit from the minimum value of the currency fluctuations. A trader makes an
Thursday, April 14, 2016
Types of Forex strategies
