What Are The Best Forex Trading Strategies That Actually Work?
Forex trading is risky at the best of times, but it is possible to find strategies to make it without ever risking your livelihood. Top traders have done the work for you in finding the best Forex trading strategies that actually work.
The Bladerunner Trade
The Bladerunner Trade uses price actions to find entries. It is suitable for all timeframes and currency pairings. It is very popular, as it works and you don’t need to have any indicators.
Daily Fibonacci Pivot Trade
This trade combines Fibonacci retracements and extensions to find entries. It uses daily pivots only but can incorporate any number of pivots.
Bolly Band Bounce Trade
This one is definitely worth checking out, as it is perfect for a ranging market. It works better than most other strategies, especially when used in combination with other confirming signals.
Forex Overlapping Fibonacci Trade
This is the next step after already using Fibonacci retracements and extensions. They're a favorite among many traders. Although their reliability tends to be a bit lower than other strategies, when used in combination with appropriate confirming signals, they become extremely accurate.
The Pop 'n' Stop Trade
This Forex trading strategy gives you the benefit of predicting whether the price of a rising trade will continue to rise or suddenly decrease.
Trading the Forex Fractal
This is a concept that you need to know when using the other strategies. It gives you fundamental market knowledge, which will help you trade more effectively.
Forex scalping is one of the most common Forex strategies for one good reason - it is the most successful Forex trading strategy. Certain traders will avoid Forex scalping, as it is a lot of work. Instead of dipping in and out of the market maybe once or twice a day as other traders do, Forex scalpers will make several trades in and out of the market every day.
Forex scalping involves skimming (or scalping) the small profits on a regular basis, rather than going for big trades, building up a fortune but only in the long term. It can be done on a minute-by-minute basis, so you have to be focused and prepared to buy and sell within minutes.
As opposed to Forex scalping, which takes hours of work each day, positional trading consumes just a few hours per week. Yet, it still can bring you big profits.
Quite simply, positional trading involves having your positions open for long periods of time, without high leverage, so you can catch big market moves. You do, however, need to keep a close eye on currency swaps, as these can cost you more than you profit. You also need to know how to manage your emotions, as losing trades will test your resolve not to close early.
The benefit of positional trading is that you have to spend almost no time executing your moves. Rather, you spend your time analyzing the market and predicting potential moves, which will serve you in the long term.
Find your trade
These are some of the best Forex trading strategies because they work. However, finding which one is for you depends totally on your personality and position in the market. There are no guarantees, and some of these strategies will test your resolve, but if you work it accurately, you will ultimately succeed.
■ Forex Strategies that Work