Sharing: 5 Forex Strategies I Use
In this article we will learn about trading strategies and systems that have been proven in decades, also transparent and efficient in using MT4 terminals.
Hi guys, I have some tips to share from my experience of trading for the last 3 years in a forex broker . Many things I learned, however, there are some important things that should exist and be the mindset of a professional trader. I will talk about strategies that are most effective, profitable and easy to use.
In this article we will learn about proven strategies in decades, but also be transparent and efficient in using MT4 terminals (the most popular trading software). All of the strategies I’ve described are now just as effective in the currency market and are becoming popular among traders.
Deposit Forex Strategy
In using this strategy, you can make a profit from the interest rate difference from the currency you choose. In other words, you will make a profit from a direct currency exchange. In this strategy, it is very important to pay attention to the world economic situation and must continue to watch the news to know changes in bank interest rates issued by the Central Bank.
The larger the bank interest rate of the currency you choose, the more profits you will get.
The procedure is like this: a trader exchanges some money from a type of currency that has a low interest rate, then deposits the money into a currency that has a high interest rate. The instrument used is the currency pair EUR / USD, USD / GBP. The less popular currencies are very rare to use in this strategy, due to high movement and risk.
In using the Breakout strategy , we use MT4 to monitor price movements in currency trading. The channel limit we use is determined by the highest and lowest price levels of the currency you choose. One time the price falls, where there are two choices, buy or sell. As the first choice, traders hold a currency, which means they pay attention to the details of currency behavior and wait for the value of the currency to rise.
When up on a certain limit, your order will be activated automatically. You do not even need to spend too much time in front of the computer. Although you still have to pay attention to the movements and behavior of currencies, the decisions you make regarding these currencies can be made instantly, and when the price of the currency reaches the value you want, the software will automatically buy or sell your currency.
But still this technique there are advantages and disadvantages. While it can save you time, there will be unpredictable trends that will affect the price. While keeping the currency manually, you will run out all day but the decision you make will be more accurate.
Per Pair Trading Strategies
This strategy is based on movement between currency pairs. There are 3 possible market scenarios. The currency pair can be bearish (fall in value), bullish (increase in value) or even flat, where trading will be difficult if the movement is very low. You also need to know that if the trend changes, the price of the currency can move significantly in the opposite direction that you expect and after that, the trend again moves as before. So be careful.
Therefore, the monitor keeps the price movement, and when the price is cheap, we buy, or pas mahal, we sell. You also need to know that in these modern times the flat money market is so rare that traders almost always use this strategy.
Day Trading Strategy
A very popular strategy that is destined for short-term trading. When using this strategy, a trader will be exposed to changes in the forex market significantly. A little movement will lead to the closing or opening of forex transactions.
In this case, trader profits will be very small. As you can see, this strategy requires the patience, attention and stamina of the trader. You may not get extraordinary profits from here, but at the same time, you are also less likely to lose big. Sometimes beginners prefer this strategy as it is effective but not too risky. After experience, traders usually change strategy from this one.
Strategy by Viewing News
There are many news facilities that we can see, CNN, Bloomberg, where we can monitor the world economic development, which will have an impact on the currency market. All decisions come from the Central Bank of their respective countries, political or policy speeches, economists and other influential people in the world.
You should also be up to date in the rate of inflation, GDP and business activity as well as interest rates of a country. You should be able to cover all the basic data and use these data when you make a decision. It will be very important for a quick response regarding things like this. Especially other traders in the world also watch the same news. You can use MT4 or trade online. Both risks are the same. Trading strategy with news media is always used trader pro which is also combined with other strategies in MT4.
Good luck, Guys! The spirit of the trader!