2 Popular Forex Trading Strategies

orex (Foreign Exchange or FX) refers to global currency markets. Currently the popularity of forex market is increasing worldwide and it has become the largest financial market in the world.

Chapter 1

2 Popular Forex Trading Strategies

by: dreamme

Forex (Foreign Exchange or FX) refers to global currency markets. Currently the popularity of forex market is increasing worldwide and it has become the largest financial market in the world. Thanks to technological advancements, which made forex market available for any type of trader, you have the unique opportunity of making large gains in forex market. FX is greatly appealing to traders, as it offers them a plenty of advantages, including high liquidity, leverage, a 24-hour market and low transaction costs. It is worth to mention that the key to success in forex trading is choosing a forex strategy that will increase your chances of making a lot of money. As a matter of fact, there is a countless number of forex trading strategies, in this article you will learn about 2 most common forex trading strategies that work especially for beginners.


Currency Evaluation


Currency evaluation is considered to be one of the easiest FX trading strategies to master. It is a widespread method of predicting currency fluctuations and market movements. Fundamental examination and technical tests are 2 methods that traders use to research currency. Some traders use fundamental research, while others prefer technical evaluation. So, what is the difference between fundamental and technical checks? Everything is very simple. The technical relies on the price of a given currency pair. Traders use this method for identifying trends and measuring the price volatility of currency pairs. In fact, with this information traders can detect trading signals, that’s to say, it helps them decide when to buy and when to sell. In case of the fundamental, the valuation of the currency is based on economic indicators. Economic indicators refer to essential financial data related to the currencies. Interest rate announcements, Trade Balance numbers are examples of economic indicators. It should be mentioned that government factors, like political situation, also have a significant impact on the given currency.


Day Trading


Day trading is in the list of the most popular forex trading strategies both among experienced and novice traders. A day trader buys and sells a security within a single trading day. You should keep in mind that the longer a trader holds a position the higher his or her risk of losing on the trade. Day traders take advantage of small price fluctuations of the currency during a single trading day. Although the price fluctuations are small, day traders have the opportunity of making many trades over the course, which can result in considerable gains.


These two strategies are among the most basic forex strategies that actually work and can help you generate large profits, in case used properly.


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