forex trading strategies that work
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Forex trading strategies that work

Forex currency trading is an art that only few dealers are able to master. It may take a lot to time, persistence, and determination to learn the best Forex trading strategies that lead to productive deals. The problem is the fact that not all people are that disciplined or inspired enough to learn Forex currency trading strategies offering successful outcome in the Forex market. Despite the fact that there is no guarantee these strategies will correctly predict cost trends, however they do increase the likelihood that the cost will move in a predetermined direction.

Scalping

Scalping is an efficient strategy to make profit from very brief term trade using high influence. The goal is to gain from the motion of a few pips in the Forex market. This strategy could be dangerous and can be not recommended for novice dealers, new to the scene of Forex trading. The Forex trading strategies do work, but you’ve to know deeply about the prevalent market conditions that underlie a particular currency pair. If not applied properly, scalping strategy may result in an excellent loss in an extremely brief period of time. Even for advanced traders, it is suggested to not use this technique often as there is plenty of risk in implementing this technique in the Forex market.

Hedging

Hedging is another excellent technique due to the fact that it helps reduce the risk of investing in the Forex market. The technique reduces danger by taking two distinct positions on the same trade. The concept is to utilize two distinct pairs to hedge in the Forex market. In such case you would look for a currency pair that is inversely related to your currency pair such as USD/EUR. In order to hedge your currency pair, you go long this currency pair as well. Hedging, in place, minimizes danger from the Forex trade thus enabling you to keep your capital.

London trading capital

London trading capital is a great Forex strategy that permits you to exploit some distinctive opportunities present in the Forex trade. This strategy is particularly relevant to gold along with other rare metal currency pairs. This presents an excellent opportunity for traders to exploit the scenario and capitalize on the chance. London hammer commercial strategy exploits such a scenario and allows Forex traders to gain from the trade.

Position trading

Another excellent Forex strategy to gain from the commerce is position trading. This strategy is based on the position you take on a particular currency pair. The position you take relates to average cost of the currency pair during a specific period. Now, if the XAU/USD currency price falls again from 1 pips to 1200.03, your trade could still be profitable.

You can try any of these strategies over at eToro and get $100,000 of virtual money. Not bad to experiment or even find your own strategy that suits you best!