How Can You Choose Trading Strategies for Yourself?

How to Choose the Best Forex Trading Strategy

Forex is the largest currency exchange platform in the business world, and one can do this online. Statistical data reveals that everyday trillions of currencies are being bought and sold on this platform. Many people are now trying to join the market in the hope of earning a fair amount of money. But they become stuck when they don’t know what to do or where to start.

We suggest that juniors start learning the basic terminologies from the beginning. Try to know every one of them, and then advance slowly. Beginners become too confused when it is about the trading strategies because they don’t understand which one they should choose. Here, we will help you to overcome this issue. Don’t worry, at the end of this article, we will let you know which plan may be best for you.

Some Forex trading strategies

Here are some of the top-rated plans for the CFD industry –

  1. Bladerunner trade: This plan is regarded as a suitable one to use in both lower and higher timeframes and for all currency pairs. Professionals also call it the price action strategy.
  2. Fibonacci pivot trade: This kind of trade utilized the regular pivots. But you can extend it to use in a higher timeframe. This pivot trading strategy combines Fibonacci extensions and retracements.
  3. Bolly band-bounce trading: This plan is ideal for a consolidated or sideways market. If an investor can utilize it combining with the guaranteeing indicator, it will work even well. If traders in Hong Kong are not familiar with the Bollinger bands, they should check this out.
  4. Overlapping Fibonacci: This strategy is a favorite among intermediates because they can easily rely on it. But experts recommend newbies to combine it with some confirming signals to get more accurate results.
  5. Pop N stop: When the price rarely goes upward, you can use this one. If a beginner doesn’t know how to handle this, it would be better to avoid it. This system will simply show you a potential risk.
  6. Forex fractal: This one is actually a theory, but an investor can take benefits from it if he knows it well enough. This concept offers traders an opportunity to understand the mechanism of the fundamental factors of this industry.

These are the six most popular ETF trading plans you need to learn. To select one of them, you have to be familiar with your psychology, risk-tolerance level, and the amount of risk you can afford to take. In addition to these plans, there is one more thing that every beginner should know about, which is the styles.

FX trading styles

There are several trading styles in the currency exchange industry, but here, we will concentrate on two of them because of their popularity and difficulty level.

  1. Scalping

Scalping is the hardest and riskiest trading style because of its shorter timeframe. The traders have to execute their trade within a few minutes. Think about it. If you choose to be a scalper, you have a few minutes to think and make a decision. The situation will be challenging for newbies because you have to be an expert in technical analysis to make a good, quick decision.

  1. Position trading

This is considered the easiest and best method for newbies because they don’t need to move quickly and get enough time to study the price’s movement. Professionals always encourage them to choose this trading style as it is less risky. The duration is long, and you can hold your trade for several weeks. Therefore, you can slowly develop your skills.

Finally, it should be stated that choosing the styles and strategies entirely depends on an investor’s psychology. Therefore, it is better to use them in the demo account first to find out which one can be the best. We advise that every beginner trader should start with position trading.