Online Trading Strategies
This is not all about investing in a currency which is likely to see an appreciation in price value it is to have a working trading strategies, this is not easy it can take you few months before getting something that really works for you. Applying for mentorship can speed up the process.
A meaningful Forex investment targeted at yielding the profit requires strategic planning. Seasonal investors may rely on long term prospects of a currency. But daily basis traders have to take into account different stats related to trends in market. Even a small mistake, can make an investor to blow his/her trading account.
Insightful Forex investors rely on different strategies to make profits out of their investments. Here are three most common Forex Trading strategies that can make investors to reap maximum benefits.
Fibonacci Pivot Trades combine Fibonacci retracements
Pivot points and Fibonacci retracements are efficient strategies in minimizing the levels of risks in Forex trading. Both these strategies when combined can help to maximize profits as well.
Pivot points have remained very much significant in determining profitability of other investments. They are useful in determining the profitability of Forex investments as well. Pivot points accurately predict the resistance and support points of currencies. They prove to be useful, especially, in case of liquid pairs. Strong support points favour the trade of a currency.
You can also combine Fibonacci retracements with pivots. Without going into details of the process keep one thing in mind. When 50% of Fibonacci retracement converges with the support of point, then move on with trading. When 50% of Fibonacci retracement combines with resistance level then, stop trading and draw your profits.
London Opens/London Breakout
This trading strategy is confined within 2 hours of the opening of London Breakout Forex market. Most of the trade in Forex market takes place within this trading session. Trend in this session predicts market for rest of the day. The same trend continues in US Forex market as well. Trading pair in this case is GBP/USD. Trading during these hours means to catch the trend and continuing to reap the benefits for rest of the day.
Looking of the trading strategies is simple. Trader has to determine the candlesticks in Asian market and then determine their high and low points. Now draw horizontal lines on high and low points. If price breaks above the high point, then trader should use the buy option and if breaks below the lower point, then here is the sell signal.
SMA and EMA trading strategies
SMA and EMA analyses have to play a major role in deciding upon trading of currencies.
Simple moving averages (SMA) exponential moving average (EMA). Both these averages calculate the trends in buying and selling prices.
While SMAs give a brief and more generalized overview of a market, EMAs tell about weighted average of recent prices. In this way, they offer more precise trend of market.
For example, in uptrend when shorter period moving average crosses the longer period moving average which EMA, then trader should consider buying. This is one of the most used trading strategies most traders use.
Open a trading account
Trading Forex, Binary and CFDs involves substantial risk and can result in the loss of your initial invested capital.
Trading brings a high level of risk and may not be appropriate for all investors. You should fully understand the risks involved.
Never risk more than what you are prepared to lose.