types of forex strategies
In conquering the forex market, traders around the world have used various methods to get maximum profit.there are many ways that traders do to get maximum profit. They mostly adapt their strategies according to their respective personalities. Therefore, experts summarize the various strategies in several categories.Do you know, including what strategy you are currently using? what are the most common strategies in the world? To find out, consider the following discussion.
Time based trading strategy
Traders have different times of trading. Both when you will open a position, to take profit. Their reasons differ, of course, but the most common is that not every trader has enough time to monitor forex market movements. Therefore, every trader is important in choosing the best time to start their trading. Time based trading strategies include:
A. Scalping
Scalping strategy is a strategy that is quite popular among many traders. This strategy relies on the speed of opening positions and closing them in a fast time to take profits in a short time. Traders who use this strategy usually use small timeframes, so they take advantage of market volatility in taking trading positions.
This strategy is a strategy that is quite risky. A trader needs to study this strategy in depth before actually using this strategy.
B. Intraday
Unlike the scalping strategy, the intraday strategy is a strategy that uses a higher timeframe. The advantage of this strategy is that a trader does not need to monitor charts all the time. They only need to monitor the chart at certain hours. Another advantage, a trader does not need to open many positions in a day but the profit generated is still maximum.
In this strategy a trader needs to have a lot of patience. This is necessary so that trading psychology can be built. So that a trader can refrain from continuing to monitor the chart.
C. Swing Trading
One level above the intraday trading strategy, swing trading is a strategy that uses a higher timeframe. Such as 4 hours timeframe and 1 day timeframe.
In this strategy a trader can hold a position for days. They usually do market analysis before the forex market opens, and will take profits when the forex market is closed.
Position Trading
This strategy is a strategy that uses the longest trading time. In this strategy, a trader can hold a position for weeks or even months.
They take advantage of economic news that can have a big impact on the economic structure of a country. The timeframes they usually use are high timeframes such as one week or one month timeframes.
Analysis-Based Trading Strategy
When it comes to trading, of course you currently have your own way of trading, right? Do you know what strategy your trading includes ?. Maybe if you are a beginner, of course this is very important to help you optimize your strategy in the future. In general, there are two main analyzes used by a trader in trading. The two analyzes are then divided into several small parts which then become the characteristics of a trader.
The two forms of analysis include:
Technical analysis strategy
Technical strategy is an analytical strategy that relies on data on the market in the past. Traders who use technical analysis strategies will study this data to read the next market direction. Traders using this strategy benefit from several indicators built into the meta trader, to help them perform technical analysis.
The technical analysis strategy is divided into several small groups who are part of this strategy. The technical analysis strategy groups include:
1. Trend following strategy
2. Range trading strategy
3. Momentum strategy4. Break out strategy
5. Reversal strategy
6. Pullback Strategy7. Price Action Strategy
3. Contrarian strategy
Fundamental analysis strategy
If the technical analysis strategy relies on past data, the fundamental analysis strategy relies on economic news as a reference. Traders who use this strategy believe that the currency market is driven by the state of the economy in a country. This is usually published in economic news.
If the technical analysis strategy relies on past data, the fundamental analysis strategy relies on economic news as a reference. Traders who use this strategy believe that the currency market is driven by the state of the economy in a country. This is usually published in economic news.
There are also several news categories. Among others :
1. News has a big impact: inflation, economic crisis, and others.
2. Medium impact news: Changes in interest rates, world bank meetings, and more.
3. Small impact news: Events, national days, and more.
CONCLUSION :
Although there is no Although there is no such thing as a trading strategy that is guaranteed to profit 100%. However, by deepening one trading strategy, a trader can reduce the risk of failure in trading. Of course, in msuch thing as a trading strategy that is guaranteed to profit 100%. However, by deepening one trading strategy, a trader can reduce the risk of failure in trading. Of course, in making a trading strategy a trader needs to adapt himself to a trading strategy. This is so that a trader can feel comfortable with a strategy and not be disturbed by his trading time, so that he can optimize the profit he wants to achieve.
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