Types of Forex trading strategies
Forex trading strategies are divided by time. Longer strategies are less profitable but less risky. They require less psychological stress and a greater ratio of Deposit / Margin. The converse is true for short-term Forex trading strategies.
Long-term strategies - Forex trading strategies such as trader holds a position open for several days to a month or more. This is the least risky strategy that does not require making instant decisions. Yes, and psychological stress are low. On the other hand, quite a large deposit of at least 5 to 10 times higher than Margin (amount required to open and maintain a position).
Thus, in Margin equal to $ 1,000 for the work under this Forex trading strategy should be 10,000. This is necessary to withstand harsh speculative fluctuations, reaching an average of 500 - 1000 points. A second drawback of this class of strategies that must be paid for the transfer position. Such a strategy using strategic investors and speculators semi. It is most effective in the emerging trend and the least profitable at the side or sluggish trends. Requires mandatory safety net of related work and on the futures exchange options market.
The medium-term Forex trading strategy is working within the time limits ranging from one day to one week. It satisfies all of the above. It is perfect for beginners who can not or do not want to wait a long time. This is potentially more profitable and somewhat risky strategy, but at a ratio of Deposit / Margin of 5-10, it can be virtually risk-free.
This strategy is mainly used as semi-professional speculators. This strategy can take advantage of all the strategies work, on the one hand it can be quite long-term, on the other - short-term.
Short-term strategy - Forex trading strategy from one hour to one day. Potentially highly profitable strategy for experienced traders. It is used by professional players who are already well known and "" market. The positive point here is that by using this strategy to work, you are not putting yourself at risk of unexpected price changes and fellowship at a time when you were on the market. Negative - large indirect costs (commissions, spread, communication services, etc.), a greater risk of adverse short-term fluctuations in price; requires constant concentration, and stress control during the day.
Very short strategy - the most attractive for beginners and most rapidly leads to their complete collapse. Tempted by short-term fluctuations of a few points, the trader begins to "catch points" on 1-5. Several times it can be successful, it earns 20-40 points.
Then there is a movement against the position of the trader and he quickly makes a loss. Since this work requires a very rapid decisions under conditions of very high psychological stress, which is available only to a very experienced trader, beginner does not do anything but fascinated watching how rapidly decreasing its deposit.
To begin with recommended use of the medium-term Forex trading strategy to gradually taking advantage of the first and penultimate strategy when flaccid or sideways. It should be noted that "it is better to do nothing than to do that - then." I mean that you can not enter into transactions only - a simple desire to act, often provoked by the long inaction. For each transaction must be a reason - fundamental or technical.
Forex trading strategies are divided by time. Longer strategies are less profitable but less risky. They require less psychological stress and a greater ratio of Deposit / Margin. The converse is true for short-term Forex trading strategies.
Long-term strategies - Forex trading strategies such as trader holds a position open for several days to a month or more. This is the least risky strategy that does not require making instant decisions. Yes, and psychological stress are low. On the other hand, quite a large deposit of at least 5 to 10 times higher than Margin (amount required to open and maintain a position).
Thus, in Margin equal to $ 1,000 for the work under this Forex trading strategy should be 10,000. This is necessary to withstand harsh speculative fluctuations, reaching an average of 500 - 1000 points. A second drawback of this class of strategies that must be paid for the transfer position. Such a strategy using strategic investors and speculators semi. It is most effective in the emerging trend and the least profitable at the side or sluggish trends. Requires mandatory safety net of related work and on the futures exchange options market.
The medium-term Forex trading strategy is working within the time limits ranging from one day to one week. It satisfies all of the above. It is perfect for beginners who can not or do not want to wait a long time. This is potentially more profitable and somewhat risky strategy, but at a ratio of Deposit / Margin of 5-10, it can be virtually risk-free.
This strategy is mainly used as semi-professional speculators. This strategy can take advantage of all the strategies work, on the one hand it can be quite long-term, on the other - short-term.
Short-term strategy - Forex trading strategy from one hour to one day. Potentially highly profitable strategy for experienced traders. It is used by professional players who are already well known and "" market. The positive point here is that by using this strategy to work, you are not putting yourself at risk of unexpected price changes and fellowship at a time when you were on the market. Negative - large indirect costs (commissions, spread, communication services, etc.), a greater risk of adverse short-term fluctuations in price; requires constant concentration, and stress control during the day.
Very short strategy - the most attractive for beginners and most rapidly leads to their complete collapse. Tempted by short-term fluctuations of a few points, the trader begins to "catch points" on 1-5. Several times it can be successful, it earns 20-40 points.
Then there is a movement against the position of the trader and he quickly makes a loss. Since this work requires a very rapid decisions under conditions of very high psychological stress, which is available only to a very experienced trader, beginner does not do anything but fascinated watching how rapidly decreasing its deposit.
To begin with recommended use of the medium-term Forex trading strategy to gradually taking advantage of the first and penultimate strategy when flaccid or sideways. It should be noted that "it is better to do nothing than to do that - then." I mean that you can not enter into transactions only - a simple desire to act, often provoked by the long inaction. For each transaction must be a reason - fundamental or technical.
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