Many trading investors especially beginners would like to learn the best trading strategy for them. There are four that are commonly used by experts. These are the swing, discretionary, scalping, and automated trading. First thing to consider before entering the Foreign Exchange Market is to identify which trading style suits you best. Several factors may affect your trading style like your time and capabilities. This article will give you and idea on how each of these trading strategies work:
It is almost similar with Day Trading where you could use many trading systems. Its chart time fame is longer than that of day trading. It includes three types of trades, the trend trading, counter trend trading and range trading.
It does both technical and fundamental analysis. This trading style use visuals like charts to see the pattern of the movement of the market condition. It analyzes the market on a regular basis therefore giving the trader a better understanding of the trading environment. It also applies quantitative analysis to forecast traders’ earnings.
It uses the fundamental analysis to predict the future exchange rates. Traders who use this style watch the economic condition as a whole. They base their analysis on news that would affect the economy like natural disasters, politics, price hikes etc. Before the market adjusts to the condition they make a quick buying decision then sell once the market has recovered.
This is the most commonly used by both new and old traders. Trading is possible with little or no human intervention through the use of automated software programs. These trading robots were designed by expert traders. Since Foreign Exchange trading entails a lot of time and effort they saw the need for system to do the work for them. They programmed these robots based on their trading strategies so they need not to be in front of their PCs all the time. If you are the type of person who doesn’t have enough time to monitor the market 24/7 this is a trading style that will best work for you. Having the right knowledgeable, discipline and a reliable tool should not only make your trading easier but will also increase your chances of getting profits in no time.