Most chosen trading strategies
In the past, it could be seen that different strategies were most chosen to follow the success of other successful traders. Basically, the trend strategy is the most important and also the easiest to implement. In the trend strategy, the trader bets on a value when it follows a trend. As has often been stated, the trend is the trader's friend : "The trend is your friend", it is said among traders that they should not bet against a trend. Accordingly, for the analysis of a value, different indicators must be used to identify a trend. Among others, there are trend lines and also trend channels to be drawn, which should be introduced in the real-time charts. In addition, the use of the numerous oscillators is important. Among them are the following means of analysis:
- Moving averages
- Bollinger Bands
- RSI (Relative Strength Index)
- Candlestick signals ( e.g. Hammer and Hanging Man)
Of course, traders can also make sure that they use other tools to identify a trend. Most traders turn to these values to be able to get a first impression of a price. In addition to the trend method, however, a trend reversal is also easy to analyze. Here a price is looked at, which has developed among other things in the last hours. Through this, the trader can get a good impression of whether the price has currently risen or fallen. Here, of course, the assistance of the charts is needed again. Candlestick charts are the best way to see the first signs of a reversing trend.
After all, this way it is ensured that the different opening and closing prices can be viewed and are sufficient for a valuation at the same time. Special candlestick signals are to be observed in order to initiate a trend reversal and accordingly use the price for a successful trade. In addition, it is important to observe the particular details of the price fluctuations, which are additionally to be used by an economic calendar. In fact, most traders do not rely only on the analysis of the rates. They additionally use a calendar that announces the most important economic events. Based on the data, it is possible to see when important announcements related to currencies are released that could influence a forex rate.
Thus, here we would have arrived at the last most successful trading strategy. Fundamental trading is based on the search for current economic events. The combination of the technical analysis and the economic data can ensure a better prediction. The traders get better indications in this way in terms of the current trading data that they need to pay attention to. Many beginners rely on scalping. A strategy that involves trading within very short periods of time. A trade lasts a maximum of five minutes, but this is not advisable at the beginning. In this period, a course can change very quickly, which unfortunately should not be the purpose of trading. To ensure a stable trading situation is a prerequisite for safe trading in foreign exchange, so as not to receive losses.
Combining instead of rigid trading
The most important thing is to combine trading strategies. In the beginning, when there is not yet too much experience in the field of foreign exchange, a demo account is suitable to try out all the important strategies without losing your stake. Different providers like https://exnessthai.com/ have such a test account and ensure that, among other things, can be traded infinitely often without losses. A combination of the most successful trading strategies is the best way to trade as you see fit. Above all, the search for a trend is important in forex trading. This ensures that there is no rigid adherence to a plan. Flexible trading is quite interesting and is possible even for beginners of Forex trading. The trend strategy and the trend reversal strategy make it possible to trade a trend price by analyzing the chart candles. Whether a current upward or downward trend is traded is less important. The only important thing is that one is relatively sure which strategy wants to be followed. In some cases, fast trading can also be useful, for example, if a price suddenly falls or rises after an economic event. However, here it is necessary to make sure that trading is not done earlier than five minutes after the announcement of the economic event in order not to receive losses. Testing the methods is possible in advance via the demo account.