To be able to make a profit when trading forex and minimize the risk of loss, you must use the appropriate strategy and are considered the most successful. Then, what strategies can be applied when trading forex? See the explanation in the following description.
Define Trading styles
In general, there are 3 types of trading styles that you can use. First there is scalping, which is usually used for short-term trading in minutes or hours, of course on the same day.
Then there is day trading which has a longer time than scalping. To use these trading styles you can trade on the same day as buying in the 1st session and selling in the second session. Day traders themselves will generate greater profits than scalping.
Channel Trading Strategy
The point is you have to master the market channel or trading channel. Prices that can move in a downward trend are used as a corridor between 2 horizontal levels. Some of the rules in this strategy are when there is an uptrend, trade only on the third spike.
Then if the trend is down open short positions only if the price jumps from line 2 resistance. Stop loss orders should be placed above the resistance line with an insignificant increase. If the trend is sideaways, use it for trading with a rather high target
Then the third is swing trading, which is the period of medium-scale trading activity. Can be weekly or monthly. A swing trader is always waiting for the momentum to open a position. This style is considered safer and less risky so it is suitable for those of you who are still beginners.
Trading Technical Level
When trading, you need to indicate the price level for the monthly period. To open a position, the rules are quite simple.
Just follow the technical rules of trading, by aligning the sulfur, your position can soar or even fall. If it has recovered, later you will see long losses behind fake losses. By knowing your weaknesses, the position can be improved.
When going to break the sulliort level and correct the error as a reflection of the resistance, it will close short positions and the loss of the table above the maximum can be reduced. Next, you just have to see this strategy work.
Follow the Trend of Price Movement
Trend trending itself is a trading method to take advantage of analyzing price movements in a certain direction, when forex prices move in one direction as a whole.
If you are in an uptrend, you can take a long position because it is assumed that within a certain time the forex price will increase, buy on weaknes or buy on breakout to be safer. If you are sideaways, take a buy and sell position at the same time.
Then if there is a downtrend the price movement is declining, then you can take a short position, assuming the forex price will decrease over time. Do sell on strength (sell at a high price) when forex is at its peak to generate maximum profit.