Learn How To Trade The Forex Market With Forex Trading Strategies
Forex Trading Strategies
If you want to trade the Forex Market professionally, you will need to utilize a Forex trading system. After trading for a few years, most people will develop their own system based on trades they have had success with.
If you are new to Forex Trading you may have no knowledge on what trades to take. So in that case you will want to cut down on the learning curve and invest in a good Forex Trading System; from a trader who has had success in the markets.
This will allow you to learn from trader’s who have already traveled the road you are trying to journey on now. It also will give you a good foundation so you can build and develop your own trading system.
Most people do not know that there are all kinds of trader’s out there, and you will have to find out what type of trader you are. You figure this out by finding out what type of trades you feel comfortable taking.
Forex Trading Styles
This type of trader loves the fast paced market and takes quick short trades. They enter the market only looking to make 5 to 15 pips per trade and they are going to have a very high risk factor. Many scalper trader’s do not even use a stop loss.
Now at first thought you may think 5 pips is not much money at all. But because the Scalper is getting in and out of the market quickly they can take a lot more trades then a longer term trader.
The Scalper uses the 1, 5, and 15 minute charts to trade on and again a lot of them do not use a stop loss because of the quick nature of the trade.
Most pro Scalpers trade the London session because they need the fast pace and volatility to make money. The London session is the busiest trading session of the day.
For some trader’s this works great. For others it’s to fast paced and they just do not feel comfortable not having a stop loss in case the market moves heavily against you.
- Swing Trader-
This Trader is trying to make from 75 to 500 pips per trade. They are willing to set a large stop loss for the purpose of trying to catch a big trend run in their favor.
Swing Trader’s usually trade on the 4 hour or Day Charts; and they have no problem staying in trades overnight or for a few weeks.
The positive factor to Swing Trading is that you do not have to be glued to your computer to trade. Once you set the trade you walk away, and your okay if you lose because you know exactly how much you risked on the trade.
-Long Term Trader-
This Trader is looking for the big pay day. They are very patient and usually trade on the week and monthly charts. They use a huge stop loss and they pay a lot of attention to what the current trend has been over the prior months not days.
Many large organizations trade like this because they have huge amounts to invest so the stop loss is not an issue.
Forex Trading System
All Trader’s have to get a solid Forex Trading System in place to run their accounts. There are also other Trader’s who fall somewhere in between what I have listed here. The job is to figure out what type of Trader you are and what trades you feel comfortable taking. Your system will greatly help you decide this.
Most systems are based on trading types and theory’s. You are reading this information because you have learned that there is big money to be made in the Forex Market. I can say the money is here for the taking, but knowledge is power when it comes to making money in the Forex.
Get a Forex system and test it out on a demo account. When you start to make money consistently it’s time to go live and start making real money; right from the comfort of your own home.