To succeed in forex trading, there are three fundamental elements that a trader must possess. They are a reliable forex broker, a suitable strategy, and the right attitude for trading. We have discussed how to find the best forex brokers before. Today, we will focus on building yourself the ultimate best forex trading strategies to maximize your profits in forex trading.
When forex traders mention forex trading strategies, what they mean is the basic analysis and how to turn that into profits. However, this is only a small part of a complete picture. A sustainably profitable forex trading strategy that brings everything from trading signals to place orders, but the overall picture also includes many other things like:
If you're new to forex trading, you have to read:
You may have heard that maintaining discipline in forex trading is a very important aspect. Have doubts about the above? How can you ensure that discipline in trading will bring you profit? The truth is that to become a profitable trader in the long run, you have to be disciplined in trading.
Being disciplined is not certain that you will make a profit, but without discipline it is almost certain that you will fail with this competitive and risky trading career. Therefore, the best forex trading method for you is discipline, follow everything you set even though it may not be profitable for you. Please adjust then one day not far from your trading method will become effective in the forex market.
Fundamental Analysis, or FA for short, is a method of analyzing the factors that affect the exchange rate, quickly find out the causes of strong market fluctuations and support information / pressure on the market to continue the trend... PTCB always follow the news of the day, so you need to Bookmark the financial-economic website to regularly update new information closely. market variable.
Contrary to FA, technical analysis may not need to pay attention to micro and macro news or economic policies of major countries but only focus on signs on price charts, calendar analysis. history and forecast the next move. Technical analysis using indicators is a supporting tool, the application is written by programmers writing in mq (metaquote) language is quite complex, generally indicators are used to average the data in the process. past to predict future prices. Similar to the subject of statistical probability and econometrics, the data in the previous period shows an increasing trend, we can estimate the average price in the coming time, or estimate the "real" value through the lines. The moving average, the moving average, assumes that the price has moved through the average of 150 pips a day, but today the breakout fluctuates sharply to 300 pips. The moving averages help to evaluate the true value, which This makes the profit taking more accurate.
Combining basic knowledge and technical analysis to build a trading rule, called a Trading System, this is very important to help readers understand the market and know when to participate. the market, avoid jumping into unpredictable variables and a system of trading rules that provide conditions for you to consider whether the current market satisfies these conditions, then join the trade, if not outside the market, there is a famous proverb "if you do not know what to do in the market at this time, it is best not to do anything,'' not every time has the opportunity to trade, We need to learn when we should go on and when we should defend.
This trading strategy is based on the early movement of currency pairs that have high liquidity. GBP/USD and EUR/USD are the 2 best currency pairs to use this trading strategy. Right after the 7-am GMT candle ends, traders can place 2 pending orders opposite each other. When either position is triggered by price action, the other one will be canceled.
The amount of 50 pips is your goal in terms of profit. The stop loss order should be anywhere from 5 to 10 pips. After entering the order, let the market do the rest with your trade. You can take profit with a ratio of 1: 5 to 1:10 if the trade order is successful, otherwise you will lose a small percentage if the order is a loss order. However, please manage risk closely before entering the order, because when you enter the order with too large volume compared to the account, the loss can hardly be offset can occur.
Most professional forex traders prefer to use the daily time frame for trading. The signals in the daily frame will be less disturbed and will give traders time to think and make the most accurate decisions.
With more reliable trading signals, the long-term profit potential of daily frame trading can be huge. With daily time frames you absolutely can not care about random fluctuations of the daily price and short-term news. This trading strategy is executed according to the daily frame based on three major factors:
The first rule is you have to identify the trend of the market. An effective way to figure out the price trends is to use the 180-period moving average. By reference from this indicator you can identify the main price trend of the current market
Successful daily trading requires you to be patient because with this time frame there is only 1 tree per day so a price is formed. You must stay out of the market when needed and make sure your capital is ready to take the opportunity when it appears.
The market will have lots of random flipping waves that will make your stop loss threshold hit anytime. Move the stop-loss threshold after resistance to help protect your trade.
Building forex trading strategies can be a fun thing to do. You can try out various things to figure out which one is the most suitable for you. However, the best way is to keep track of the daily news and execute the most suitable strategy for that day.