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Best Forex Trading Strategies Ultimate Trading Guide 2021


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Forex Trading Strategies That Would Work Best For You

Forex Trading Ultimate Trading Guide

As a forex trader, chances are that you must have been stuck at one point or the other in your trading career trying to figure out which forex trading strategies work best for you, right?

For example:

Should you be a swing trader, day trader, news trader, scalper, position trader or a combination of all of these?

Truth be told; it can be frustrating deciding which forex trading strategy to use. You must have seen or heard of different traders making it big in the forex market and but when you attempt a simple trade, you failed woefully.

Now, don’t worry.

In this article, we have put together 4 types of forex trading strategy guides that would work best for you and in effect makes you smile to the bank.

Sounds good, right?

Then let’s get started….

Forex Trading Strategies That Would Work Best For You


#1. Scalping Strategy

Scalping is a trading strategy that involves short-term trades. In fact, trades are held only for a few minutes. A trader who deploys this strategy is called a Scalper. Scalpers seek to quickly place a trade and skim some profits before the close of the market. Scalping generally makes use of tick charts, just like the ones you would usually see on MetaTrader 4 Supreme Edition. Additionally, the tool Scalpers use to effect trade is known as “order flow”

We usually do not recommend this strategy to retail traders because the profits realized would be used to clear the transaction costs.

#2. Day Trading Strategy

Just as the name suggests, in day trading, trading is exited before the close of the market. One benefit of deploying this strategy is that you would be insulated from the negative effect of large moves overnight. If you are a newbie in the forex space, you won’t go wrong using this strategy. Trades may not last more than 5 hours and the price bar on charts are usually set to 2 or 3 minutes. A good example of a day trading strategy is 50-pips.

#3. Swing Trading Strategy

Swing trading involves holding on to positions for so many days in a bid to make a profit from short-term price patterns. Generally, swing traders look at bars every 30 minutes or one hour before implementing a trade.

#4. Positional Trading Strategy

This is the opposite of scalping. It involves long-term trading with the hopes of maximizing profits from a major price shift. Generally, a positional trader would look at the end of day charts before making a trading decision. An ideal positional trading strategy requires discipline and patience on the part of the traders. Plus, traders need to be well-grounded in the dynamics of the market.

Which Forex trading strategy is perfect for you?

Here is the thing:

Before deciding on a trading strategy, it is important you honestly answer these three questions;

  1. Do you want to make an income from trading or grow your wealth?
  2. How much time can you devote to trading?
  3. Does this strategy fit your personality?

Once you provide answers to the above questions, the coast would be clear for you to make an informed decision.

Which forex trading strategy are you currently using? Share your thoughts with us using the comment box below.

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