FOREX STRATAGIES
A forex trading strategy defines a system that a forex trader uses to determine when to buy or sell a currency pair. There are various forex strategies that traders can use including technical analysis or fundamental analysis.
A good forex trading strategy allows for a trader to analyze the market and confidently execute trades with the tight place to put the stop loss and take profit.
Strategies falls under basically 3
1. Indicator Strategies
2. Price action strategies
3. Candlestick Patterns.
What are Forex indicators Strategies?
Before making trades on the platform, Forex traders examine various data in order to gauge how the market is performing and how it is likely to change in the future.
With detailed market analysis, traders should be able to employ more effective trading strategies and make higher returns.
Forex indicators are one way of examining market data. By examining historical data, such as currency price, volume and market performance, indicators seek to predict how the market will behave in the future and which patterns are likely to be repeated.
Once traders have this information, they are able to make more informed trading decisions and may make higher returns as a result.
Now the indicators makes it easier as just one indicator can tell you where to buy or sell in less than 5 mins.
It has revolutionized forex trading if you know how to use it.
Examples of forex indicators.
1. SMA that’s simple Moving Averages
2. EMA Exponential Moving Averages.
3. RSI. Relative Strength Index.
4. Fibonacci.
5. Elliot Wave
PRICE ACTION
Simply put, *price action* is the footprint of money. Financial markets are where money is exchanged between market participants – and this exchange of money leaves a trail.
This trail is a market’s price movement or price action, and as we now know, it can be observed on a price chart. As a Forex trader, it is vital to learn to define and trade from the clues left behind from price actions, because it makes its trail across price charts.
ADVANTAGE OF PRICE ACTION
1 You don’t need derivative indicators, expert advisors and other paid tools.
2. You can easily grasp the basics and analyze the state of any currency pair without lengthy preparation.
3. You don’t need to trust the indicators and other unreliable sources of information.
4. You trade almost always with delayed orders, which means there’s no risk of slippage.
5. Finally, the knowledge and skills gained with Price Action are useful on stock exchanges and other security markets.
Price Action Disadvantages
1. You need to understand how the market works;
2. You do not have precise instructions on when to open or close the positions.
3. You have to predict the actions of the other market participants and hope that the majority of them are at least adequate traders.
Price Action in trading requires strategic thinking and understanding of the situation.
There are no rules like “The indicators are 50 pips apart, so you should sell. Start buying when they are closer than 15.”
Instead, there are some universal guidelines and it’s up to you on how exactly you will follow them.
EXAMPLES OF STRATEGIES UNDER PRICE ACTION*
1. Head and shoulder pattern
2 support and resistance.
3. Flag Patterns
4. Tend lines
5. Counter trend trading.
Before you place trades in forex
1. Have a trading plan to stick with.
2. Do you analysis properly both fundamental and technical.
3. Observe a proper risk management.
4. Place your trades with the proper mindset
*How to set stop loss and take profit in forex*
For your trade to be profitable, stop loss/ take profit, you must set it well.
See below as I take you through setting proper stop losses and take profit to aid your trading.
Stop-loss and take-profit (SL/TP) management is one of the most important concepts of Forex.
Deep understanding of the underlying principles and mechanics is essential to professional FX trading.
*Stop-loss is an order that you send to your Forex broker to close the position automatically if trades are not going in your favour.*
_*Take-profit works in much the same way, letting you lock in profit when a certain price level is reached.*_
SL/TP is, therefore, used to exit the market. Preferably, in the right way and at the right moment.
Several strategies exist, making the decision process harder but also providing the trader with additional opportunities.
_*So how do we know if the trade is ongoing and whether we are losing
*WHY IS RISK MANAGEMENT, TRADING PLAN ETC IMPORTANT?*
It’s is importance because it helps you to avoid putting your capitals into unnecessary risks with proper risk management you can never blow an account.
* For over several times I have been asked these questions. These are some of the replies I do give them.*
_*1. Is forex complex?*_
No it’s not. My goal in teaching forex is to make it very simple and profitable.
_*2. Do I need a laptop to trade?*_
No. Having it just gives a wider screen advantage.
_*3. Do I need to have lots of money to trade forex?*_
No pls. With as little as $5 you can begin trading. Even less. _Plus I’ll introduce you to brokers that can give you real money to trade with._
_*4. Why should I learn from you?*_
Well there are many forex experts but I can tell you that I make forex simple. Simple fx is my goal and I have lots of students who are doing well. So, I have the needed experience to turn you into a successful trader.
_*5. Why is mentorship after training important?*_
Without mentorship, you will stagger. I have had that experience. You need someone to ask questions till you get stronger. Anyone who gets my paid training gets a free mentorship.
_*6. Who is this training meant for?*_
I created this training with 3 sets of persons in mind:
1. The newbie who is just hearing forex for the first time
2. The individual who has learned a lot from google and social media, but wants to advance and get a proper class.
3. The struggling trader who has paid for training to some “fake” gurus and needs a real guru to set his trading life straight.
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