4 Secure Online Trading Methods
It is well-known that Forex trading brings considerable profit to individual participants. However, beginners start making serious mistakes and quickly leave the market forever. In most cases, this happens because the trader was not able to choose the right strategy or neglected the basic rules, while sometimes there was no strategy at all. So what are Forex trading methods and how do they help to achieve success?
What are the Forex Trading Methods?
Choosing a Forex trading method is one of the most important steps for a successful trader. Thanks to the right strategy you can stay in the profit zone: determine the favorable moments for entering the market and exit trades with minimal losses. The chosen strategy should be extremely clear to the trader. Even a highly profitable but comprehensive method will not make it possible to feel all the advantages because of the lack of experience.
We offer our readers five relatively simple, but effective strategies that even a novice trader can take advantage of.
1) London Trading Session
One of the simplest strategies on the Forex market is based on the London Stock Exchange trading for 30 minutes. According to this strategy, you need to enter the market with any currency pair with GBP daily, but only once a day:
1) The signal to open a transaction is the closed first candle;
2) When it is at maximum – place a pending buy order;
3) When it reaches a minimum – place a sell order.
After the order is opened and the price has passed 15 points, the so-called stop-loss is placed.
2) Moving Averages
The strategy is applicable to any currency pairs. A trader needs to build two moving averages on the chart – one short-term and fast that will be close to the price and respond to its small changes, and the second one – long-time and slow. The essence of the strategy is the intersection of these moving averages. When the fast average crosses the slow one from the bottom up – you need to buy, and when from the top down – to sell.
3) Quick Profit
This scalping strategy is suitable for any currency pair. The best time to use it is to open trading in New York and London Stocks. A buy or sell deal must be opened when the price crosses all the EMAs (exponential moving averages) of the chart. Moreover, if the price crosses the EMA from the bottom up, then this is a signal to make a purchase. A breakeven is done immediately after the price has moved from the opening point.
4) Three Candles
This is another scalping strategy with a minute timeframe. So, at the close of the candle, it is necessary to pay attention to the last three ones. The body size of the last candle should be larger than the size of the two previous ones. The penultimate candle should be “bearish,” and the last – “bullish,” so its closing price should be higher. If these conditions are met, you can open a buying deal at the opening of the next candle. As soon as the closing price of the last candle will be lower than the penultimate one – it’s time to sell.
Even though there are many strategies, the best one is the option created by the broker. To avoid mistakes, you need to try, learn, and master your strategies. Good luck!