Wednesday, November 21, 2018

Sharing: 5 Forex Strategies I Use

I have a few tips to share from my trading experience over the past 3 years at a forex broker. I learned a lot of things, however, there are some important things that should be there and become the mindset of a professional trader. I will talk about the most effective, profitable and easy to use strategies.

In this article we will learn about proven strategies in decades, but also transparent and efficient use of MT4 terminals (the most popular trading software). All the strategies that I have described now are equally effective in the currency market and become popular among fellow traders.

Forex Deposit Strategy
In using this strategy, you can make a profit from the difference in interest rates of the currency you choose. In other words, you will make a profit from direct exchange of currencies. In this strategy, it is very important to pay attention to the world economic situation and must continue to watch the news to know the changes in bank interest rates issued by the Central Bank.

The greater the difference in bank interest rates from the currency you choose, the greater the profit you get.

The procedure is like this: a trader exchanges a sum of money from a currency that has a low interest rate, then deposits his money into a currency that has a high interest rate. The instruments used are the EUR / USD, USD / GBP currency pairs. Less popular currencies are very rarely used in this strategy, due to high movement and risk.

Breakout Strategy
In using the Breakout strategy, we use MT4 to monitor price movements in buying and selling currencies. The limit of the channel we use is determined by the highest and lowest price levels of the currency you choose. One time the price falls, where there are two choices, buy or sell. As a first choice traders hold a currency, which means they pay attention to the details of currency behavior and wait for the value of the currency to rise.

When rising at certain limits, your order will be activated automatically. You don't even need to spend too much time at the computer. Even though you still have to pay attention to the movements and behavior of the currency, the decisions you make regarding that currency can be made instantly, and when the price of the currency reaches the value you want, the software will automatically buy or sell your currency.

But still this technique has its own advantages and disadvantages. Although it can save you time, there will be a trend that is not predicted which will affect the price. Whereas by keeping the currency manually, you will run out all day but the decisions you make will be more accurate.

Per-Pair Trading Strategy
This strategy is based on movements between currency pairs. There are 3 possible market scenarios. The currency pair can be exposed to bearish (falling in value), bullish (up in value) or even flat, where trading will be difficult if the movement occurs is very low. You also need to know that if the trend changes, the price of the currency can move significantly in the opposite direction you expect and after that, the trend returns to moving as before. Be careful.

Therefore, the monitor keeps on price movements, and when low prices, we buy, or when it's expensive, we sell. You also need to know that in modern times flat money markets are so rare that traders almost always use this strategy.

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Day Trading Strategy
A very popular strategy that is intended for short-term trading. When using this strategy, a trader will be exposed to changes in the forex market significantly. Just a little movement will lead to the closing or opening of forex transactions.

In this case, the profits of the trader will be very little. As you can see, this strategy requires patience, attention and stamina from the trader. You may not get extraordinary benefits from here, but at the same time, you are also less likely to lose a lot. Sometimes beginners prefer this strategy as this strategy is effective but also not too risky. After experience, traders usually change strategies from this one.

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Strategy by Looking at News
There are many news facilities that we can see, CNN, Bloomberg, MetroTV, where we can monitor the world economic development, which will have an impact on the currency market. All decisions come from the respective Central Bank, political or policy speeches, economists and other influential people in the world.

You also have to be up to date in the inflation rate, GDP and business activities and interest rates of a country. You must be able to cover all basic data and use these data when you make a decision. It will be very important to respond quickly to things like this. Especially other traders in the world also watch the same news. You can use MT4 or trade online. The risk is both the same. This trading strategy with news media is always used by pro traders which are also combined with other strategies in MT4.


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