POWERFUL NEW FOREX TRADING STRATEGIES TO EARN A PROFIT

Forex trading, like any other investment market, can be profitable. However, this is on the proviso that the trader has a firm understanding of how the forex market works and that they have a solid strategy in place. After all, the only way to make money in the forex industry is to consistently predict the future direction of a currency pair.

In other words, to be profitable, the trader will need to generate more winning trades than losing positions. This is no easy feat in the forex market, especially considering that many seasoned traders will rely on high-level technical analysis to make trading decisions. This means studying currency pairs with the view of predicting future trends.

Day Trading – Enter and Exit Multiple Forex Positions Within a Trading Day
The first strategy to consider is day trading. In a nutshell, day traders keep a position open for a matter of hours or even minutes. The main concept is to ensure that the forex position is closed by the end of the trading day. For example, the day trader might look to go long on GBP/USD and close the position a couple of hours later after it has generated gains of 0.4%.

Crucially, profit margins will be modest due to the short-term nature of day trading. On the flip side, traders will typically enter multiple positions every day. This means that small profits can quickly add up. Furthermore, day trading is one of the least risky strategies that can be implemented in the forex space.

Scalping – Attempt to Make Modest but Frequent Gains From Small Price Movements
Scalping is an even shorting forex strategy than day trading. In a nutshell, scalping aims to enter and exit positions over a few minutes with the view of making minute profits. A profitable forex scalping strategy might enter dozens of positions every day. The scalper will end the day at a profit when they generate a surplus in winning trades.

To scalp trade forex successfully, there needs to be a firm understanding of how to deploy technical indicators – even more so than day traders. This is because the trader will look to take advantage of a short-term consolidation trend. For instance, let’s say that EUR/USD has been trading in a tight range of 0.05% for several days.
This would be highly conducive for a scalper. For instance, at the lower end of the range, the scalper can enter a suitable buy order. A sell order can be entered at the higher end of the range. On either side, the scalper would also need to enter stop-loss orders. This ensures that the scalper doesn’t encounter a sizable loss.

Swing Trading – Trade Forex With More Flexibility Over Several Days or Weeks
We would argue that for complete beginners, swing trading is the best strategy to incorporate. The overarching reason for this is that unlike day trading or scalping, swing traders have much more in the way of flexibility. This is because swing traders can keep a forex position for anywhere from a few days to several weeks.

As a result, there is no immediate pressure to close the position because the trading day is about to end. Now, swing trading is mainly focused on short-to-medium term trends. The objective is, therefore, for the swing trading position to remain open for as long as the identified trend remains in place.

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