5 Winning Strategies for Trading Forex

The exchange of foreign currencies, or forex trading, is the world’s biggest market, so it stands to reason that traders both old and new will be looking for the best forex strategy pdf.

This is an easy and effective strategy for newcomers to follow that uses the 20 EMA (exponential moving average) as its primary indicator.

Decisions are made based on whether currency prices are going above or below the 20 EMA marker, and the strategy is considered effective for any time of day or currency pairing.

As the name suggests, day trading involves buying and selling currencies within the same 24-hour period. This strategy requires the least capital to get started, hence its popularity, though it is considered difficult for newcomers.

It focuses on making small profits frequently and can be wildly successful with the proper commitment.

This strategy is typically used in trend-trading, which aims to profit by analyzing longer rise and fall market trends.

Fibonacci ratios are determined by taking two extreme points on a chart and dividing the distance between them at the key points of 23.6%, 38.2%, 50%, 61.8%, and 100% to determine the best points to buy and sell.

This is a medium term strategy where major decisions can be made in one day, or they may take several.

The idea is to act within “single moves” of the market instead of following long trends. This technique doesn’t require much time investment, but it misses out on the potential gains of longer term strategies.

This is a long term strategy that frequently involves holding currencies for weeks or months before acting.

This strategy focuses on making larger profits off of long term trends in the market, and traders using this technique are unlikely to be swayed by the news or small market fluctuations.

Traders at any level can always seek out the help of a broker.

Their success is tied directly to the trader’s, and the old adage “two heads are better than one” aptly applies to something as complex as the forex market.