The forex market is an exciting place to trade in. It is open 24/7, works on a global level, and keeps fluctuating based on news, trends and technical readings. Every trader gets many opportunities to make money every day. In fact, many experienced traders shift their positions many times during a trading session.
That said, traders must not jump into the market blindfolded - they must have a strategy and a plan. But most traders get carried away by the money-making stories and jump into the fray without a second thought. And, that is a disastrous thing to do.
Well, here's some help for new and experienced traders. Here are some of the best forex trading strategies followed and recommended by experts:
1. Before committing to a trade, traders must reserve some time to understand trends, technicals and fundamentals of their preferred (or active) currency pairs. Most currency traders are employed in a nine-to-five job, and therefore, they must make some time after they reach home so that they can set up their trades (place orders and stops) and then let the forex trading robot take over.
2. Trading during the night is restricted and therefore traders must trade in currency pairs that are nocturnally active. If traders get caught in a low volume currency pair, they cannot make a quick exit out of the trade. For example, the NZD-JPY is very active during the night and therefore can be traded in, but traders must take time to understand the currency drivers before placing an order.
3. Traders must subscribe to best forex robot in the market, which allows them to place trailing stops, stop-losses and book-profits points. Such IT features help traders make profits and stop losses. Information technology in forex trading is highly evolved and traders must exploit its potential to make profits.
4. Traders must learn technical and fundamental analysis too. A basic knowledge of technicals will help them understand time frames, price-news action, bars, moving averages, exponential averages, Stochastics, and more. An understanding of fundamentals will help them understand the currency, predict trends and react accordingly to financial news.
5. Some traders like to get in and out of trades quickly while some like to hold positions. Traders who are sure of medium- or long-term trends can hold on to their position for many days. They can even roll over their positions. Of course, every trader must set practical stop-loss limits to limit his losses.