There is a wide range of trading strategies traders can apply, but what works for one trader may not work for another.
What strategy will work for you? The answer highly depends on your patience, personality, investment research tools, and the amount of time you invest in trade.
Below is a list of the best trading strategies for Forex trading 2023. Go ahead and pick the most feasible strategy for you.
Scalping
Scalping involves participating in many short-lived trades, probably less than a minute. You will gain small profits from each trade; approximately five to ten pips gain per trade.
Quickly take advantage of the offer spread or bid and gain before the end of the day via tick charts. The trick is to analyze the real-time market condition and use it to earn profits.
Scalping strategy, however, is not the best option for retail traders. It features high transactions costs that can lower profit significantly.
This method guarantees numerous trading opportunities within a short period and high chances of making huge profits. Check trades and news feed frequently throughout the day to avoid losses.
News Trading
News trading strategy is trading around the period of significant news events. For example, you can trade before or after the economic data release.
Take advantage of the unstable market during this period. However, the market changes might not work for you if you take the wrong move.
Before using this strategy, familiarize yourself with the major economic news releases and their effects over time such as this one from forexnewsnow, which describes why binary options could be set for wipeout by regulators.
Day Trading
This strategy applies before the day ends. Start forex trading immediately after the stock market opens. You will most likely avoid night eventualities that lower profits.
The best technical charting periods range between 15 minutes and 1 hour. Forex traders from Nigeria earn profits from intraday moves. They thus trade with an extended time horizon to increase profits.
This is a good strategy if you don’t have much time to trade.
You can easily make huge profits within a short period. It is also easy to understand thus suitable for beginners.
Swing Trading
This strategy involves opening and closing out trading positions depending on the movement of the currency pairs. It lasts for a few days. Traders hope to earn from short term trading patterns.
Swing trading method is useful between extremely short intraday trades and the long-term trades.
You should check the bars after half an hour or one hour to analyze the trade movement.
Most traders would prefer this strategy since it offers time for economic conditions evaluation. This is important in making better decisions on the trades to make.
Supply and Demand Zones
A change in supply and demand affects prices. An increase in demand increases the price. An increase in supply forces the price to go down.
Supply and demand strategy assumes that certain zones have high demand or supply pushing prices away from the areas. When rechecked, these zones could still feature more demand or supply on them.
This strategy entails identifying the demand and supply areas. Marking the zones is often tricky for newbies. Supply and demand indicator marks the areas on the price charts automatically.
Traders are expected to observe price movements and take advantage of price revisits to these zones.
Read more about them here.
What Next?
Every trading strategy discussed above can work when applied in the proper market condition by the right trader. The first step is identifying your best strategy and the market conditions you wish to trade. The rest will follow.
Don’t forget to visit this blog often for up-to-date information!