The hardest thing for the Forex traders is identifying the right strategy for themselves. Due to the fact that the Forex market is easy to learn but hard to master, many Forex traders struggle to choose a trading pattern and develop their strategies accordingly. If you are also one of those traders, do not worry. Every trading expert has followed the same way with you and definitely ad hard times while trading. You can consider copy trading as an option at first; however, you have to come up with a solid trading strategy after some time. Here, you can find the 4 most popular Forex trading strategies that stand the test of time.
- Position Trading
If you feel exhausted to learn all the technical analysis terms and do not have enough time to check the market constantly, position trading can be your savior. Position trading requires a long period of time, usually months, to keep a position open. What traders do is resort to fundamental analysis to make a prediction about the future price of an asset. Once you take your position, you have to ultra-patiently wait for the right moment according to your expectations.
- Swing Trading
The waiting period of time for swing trading is shorter than the one in position trading. Traders usually close an open position in a couple of days or a few weeks. You have to have an open eye to realize an upcoming trend with the knowledge of both technical and fundamental analysis. Especially if you have a job and cannot look at the prices all the time, this strategy may be suitable for you.
- Day Trading
Day trading strategy is for those who have lots of time to spend in front of the screen. The day traders open a few positions in a day and definitely close them before the end of it. Many institutional investors who have specialized in the market use this method to make a profit from price fluctuations that happened during the day.
- Scalping Trading
Scalping trading is probably more exciting than many extreme sports. What you have to do is basically derive benefit from any little opportunity in the market. All the small profits that you made in a few pips will become something bigger when they become together. As opening and closing trades in a few minutes or even seconds, you should have a rock-solid attention span and the rest will be well for you.
SEE ALSO: Trading Robots: Do They Really Work?
