Everyone should know the 3 basic trading strategies, which are swing trading, day trading, and scalping. If you know 3 forex trading strategies, you can make money in a short amount of time. But the forex strategy secrets are: how do you know which of those 3 is the best for you? I have witnessed a lot of traders wasting years of trading the wrong strategy. I want to help you. To know which forex trading strategy suits you the most, answer the following questions:
WHAT DO YOU WANT FROM FOREX, STEADY INCOME OR DEVELOPMENT?
Income is a certain amount of money you make a month, while development is the growing of profit rate yearly.
If you choose income, it means that you want short term success. You need to look at trade in a shorter time frame, which leads to spending a lot of time in front of the screen. I suggest scalping or day trading.
If you choose development, that means you want to grow your wealth from trading. You will be fine with having fewer trading opportunities. You will trade for longer periods of time and so you spend less time watching trades. The trading strategy for you is swing trading.
HOW MUCH TIME DO YOU HAVE FOR TRADING?
This is quite an easy question. If you decide to devote a considerable amount of your time for forex trading, you should choose scalping or day trading. If you have a full time job, swing trading strategy is good for you.
HOW MUCH RISK CAN YOU TAKE?
Because my trading strategies is divided into two scenarios: high income with high risk and low income with low risk.
So if you’re comfortable with risk and ready to lose big, day trading is for you. If not, you can choose scalping or swing trading.
After answering the questions above, let’s take one last look at the 3 forex trading strategies you learn today:
- Swing trading: A wealth or income building approach for those who can spend a few hours each day trading.
- Day trading: An income generating approach for those who can spend the whole day in front of the screen.
- Scalping: Making little profit in a short time, helping you practice.
After knowing all these forex strategy secrets, check your goals, schedules, and mind-sets to determine which one is the best forex trading strategy for you. Good luck!