For those who have no idea what forex is, let me just brief you about it. The word forex is a combination of two words; foreign and exchange. It is one of the most actively traded markets in the world, with average trading of $5 trillion every day.
Unlike stocks, shares, and commodities, forex trading does not take place on exchanges, they happen between the two parties Over-The-Counter (OTC) market. Keeping in mind, whether you consider yourself among the successful forex traders or have just moved from a demo account to a real account after mastering your forex winning strategy, trading is all about eradicating the losing trades while trying to achieve more winning ones.
Often, we have seen, traders opt for trading strategies that they haven’t yet tested. If you are one of them, then you are bound to fail on each trade. Even if you manage to win a few pips on any pair, you should consider yourself lucky.
All in all, with the help of a good trading strategy, you can without doubt progress in the forex market, and eventually, you will be able to develop your own forex winning strategy. But there’s a downside to this, it’s time-consuming and a difficult process.
Don’t worry, in this post, we have compiled the top 5 winning forex trading strategies for you to try on your demo accounts. Once you think that you have mastered any one of them, you are ready to start trading on a real account.
Note: Even if you think that you have mastered a forex strategy, you should never risk more than 1% of the balance of your trade. Yes! Proper risk management is the key to success in the forex market.
Strategy#1: The Bladerunner Trade
The Bladerunner trading strategy is considered to be one of the top EMA crossover strategies for trading. It’s suitable for all currency pairs and is not restricted to any timeframe either. The Blade runner is a trending strategy that tries to pick up breakout from continuation and trade when it retests.
Strategy#2: The Swing Trade
Want to hold a trade for a few days or even weeks? Then you should opt for Swing trading. Usually, the best timeframe for swing trading is H1 and H4. Whereas, a lot of people trade on shorter timeframes, thus, risking the right entry.
For swing trading, you need to have good learning on some technical concepts like:
- Support And Resistance
- The Candle Stick Patterns
- Moving Average
When to trade?
Buy at Support and Sell at Resistance.
Strategy#3: Intra-Day Trading
Intra-day trading is quite similar to swing trading but it is a lot fast. You hold the trades for a shorter period. The most suitable timeframes for intra-day trading are 15M and 30 M.
Being an intraday trader, you need to focus on capturing the volatility. Yes! This means that you must trade the most volatile sessions, because, that’s where you’ll be making money.
Strategy#4: The Over-lapping Fibonacci Trade
The forex overlapping Fibonacci Trade is one of the top favorites amongst forex trading strategies of some renowned traders. Keeping in mind, when used alone, their reliability can be a lot lower than other trading strategies, yet if you use them with the right combination of indicators, the overlapping Fibonacci trading strategy can be very accurate.
Strategy#5: Price Action
The price action trading strategy is most suited for short term to medium term trades, as most of the traders believe that the market follows a random pattern and there is no systematic way to define a strategy that works 100% correct all the time.
Since most of us know that price action mostly relates to past price movements and recent data. That is why, trend lines, support, resistance, consolidation, high and low swings, and price bands should be considered.
You will be able to find a lot of forex trading strategies on the internet. But, as a trader, you should carefully understand, practice, and then start to trade for the best possible profit opportunities.
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