Jun 05 2021 2
When it comes to choosing a trading strategy, you should look at the professional trading strategies PDF because they are used by the best traders in the market. Here are 5 professional trading strategies in the forex market that traders often choose:
Scalping is a trading strategy that holds an order for a few seconds to a few minutes. The goal of this strategy is to take small profits on many trades per day.
Choosing this strategy, the trader will trade on the M1 or M5 frame with a small number of pips.
Because of the large number of transactions, when choosing Scalping, you should choose a forex broker with small spreads or low transaction commission costs.
This strategy has many potential risks and requires traders with a stable mentality, a strategy, good analytical ability and quick reaction.
Basically, scalping means you open and close your trading positions very quickly, and you will be trading a lot of positions in a day. So you will need a broker with low spread and low commission. Spread is the difference between the Buy price and the Sell price. Lower spread means less loss. Commission is charged whenever you complete a trade. Because you trade multiple times a day, you will need low or no commission. Here are some brokers with low spread and low commission:
2. Day Trading
Day Trading is a day trading strategy, orders will be opened and closed during the day, not overnight.
To be safe, traders often install SL, TP fully and follow the technical analysis school mainly.
Day Trading also requires a lot of time to track orders and process when the market goes against the predicted trend. The number of pips fluctuates usually no more than 100 pips/currency pair.
Unless you trade Gold on the first Friday of the month when there is Non-farm news, the market can run as fast as 150 pips or more.
The best brokers for day trading strategy
So for day trading, you will need brokers who allow you to trade bigger volumes because you only trade during the day. You don’t keep your positions overnight. Moreover, pick brokers who have less slippages because big slippage can mess up your trades. Here are the most suitable forex brokers for day trading:
3. Swing Trading
Unlike Day Trading, Swing Trading is a form of trading that holds orders for a few days or even weeks.
Traders who choose this strategy often rely on technical analysis or Price Action to find a nice entry point, giving a good R:R ratio.
The order will automatically close based on the pre-set SL and TP levels, so Swing Trader usually does not take too long to monitor and manage orders.
The best brokers for price action strategy
So you can see that price action strategy is all about indicators. Therefore, the best forex brokers for this strategy is the one with platforms that allow you to use as many indicators as possible. Here are the top forex trading platforms for price action strategy:
4. Position Trading
Position Trading is a form of transaction similar to stock investment. Accordingly, traders will hold orders from a few weeks to several years.
When choosing this strategy, traders often combine technical analysis and fundamental analysis to make decisions. They will ignore small fluctuations in the short term and head for the long term trend. Therefore, Position Trading requires a large amount of capital and must have perseverance.
The best brokers for swing strategy
You need many good indicators for swing trading strategy. The only way to do that is to trade with brokers who have advanced and modern trading platforms. Here are the brokers who have a variety of forex indicators on their platforms:
5. High-Frequency Trading
High-Frequency Trading is not too popular, but I still want to introduce you to the basics and full of strategies. Accordingly, when choosing this trading strategy, traders will use complex algorithms to analyze the market.
This is the strategy mentioned in Michael Lewis' book "Flash Boys". However, now it is no longer popular and rarely applied.
Which professional trading strategies are right for you?
To choose the right trading strategy, it is necessary to consider your personality, time conditions and the amount of knowledge you have.
- Position Trader will take a few hours/week to analyze and plan to enter the order.
- Swing Trader takes about 1-2 hours/day to manage orders.
- Scalp Trader will need to spend all day analyzing and entering orders.
Besides, it is necessary to consider the level of risk tolerance on each trading order. Because Scalping loses, the number of pips will be lower than Swing Trading and Position Trading. You should consider, try and choose the method that works best for you. Limiting the constant change of trading methods will not lead to long-term effects.
When to change trading strategy?
Trading strategies may need to be changed as needed. That's when you find it no longer relevant, low R:R ratio, causing psychological stress in the trading process.
If you don't know why the trade won or lost, do not anticipate the risks and have scenarios when the market changes, then it is time to rethink your current strategy. Trading is a long-term job, needs perseverance, perseverance, seriously learning and improving those professional trading strategies everyday.