How To Succeed In 2019? Top 5 Forex Trading Strategies for 2019
$7 Trillions of Transactions per day. Forex market phenomena. Every process in this world is either undergoing evolution or dying. We all remember how Forex opposers have been prophesying a “bubble explosion”. In spite of all, Forex is evolving. Trading is not limited with old canons anymore. Millions of researchers and traders around the globe crunch the numbers and new Forex tendencies to find out the most effective money-making strategies in the upcoming year. What are the tendencies? What strategies should we follow in 2019? How to succeed in 2019?
Key Elements Of Effective Forex Trading Strategy:
Most Popular Forex Trading Strategies:
There are lots of trading strategies to choose from, but the real question is, What Type Of A Forex Trader Are You? It depends on your personality, patience and the available time you’re willing to invest in the market.
Are you ready? Go ahead and choose the most feasible flavor for you.
1) Scalping: This is one of the most popular forex trading strategies which lasts for a short-term period, probably the time required to make a cappuccino. The scalping strategy involves a large number of trades with a small profit from each. On an average, you will be able to make 5-10 pips gain on every trade. However, don’t forget to set your stop loss in case the trade reverses. Your losses can be huge, your cappuccino will get cold.
Raj Gupta, Financial Analyst at Alphabeta FX shared, “Scalp trading has always been popular among traders due to less exposure to risk, and a high number of trades without having much capital. But it’s one of the most challenging styles of trading to master. It requires unbelievable discipline and trading focus. Scalping works with proper Candlestick pattern understanding and right knowledge of pullback and Breakout entry.”
2) Day-Trading: It’s more suitable for experienced traders. The preferred technical charting time periods are typically 15 mins and 1 hour. Day traders can only profit from intraday moves so they might tend to use higher levels of leverage and trade with a longer time horizon to magnify their profits from exchange rate shifts
“This type of trading is preferred by traders who can’t invest much time in trading or only have 1 or 2 hours to trade. The New York and London sessions are the best trading hours for day-trading. Candle frame from 15 mins to 1 hour is preferred,” Raj said.
3) Swing Trading: Establishing and then closing out trading positions based on the momentum of the underlying currency pairs. On an average, this strategy extends over a few days. The idea is to gain profit from short-term price patterns. It is typically positioned between very short intra-day trades and long-term ones. You can look for a trend and then wait for countertrend. Any pullback will provide the necessary swing that traders can cash on. This is a fairly simple strategy that allows reasonable gain.
Raj continued, “it soulfully lies on Price Action Trading Strategies, one of the powerful Forex strategies. Swing trading involves patience and focuses on a specific price range. Once price falls or pullbacks at a specific price level, the order execution occurs. Swing trading requires knowledge of Support and Resistance, Harmonic patterns, and Pivot Points.”
4) News Trading: Trading around the time of key news event such as a major economic data release. Generally, it does not involve an overnight position. You can take advantage of the market’s volatility before and after the news release, but at the same time, the markets might turn against you. Before you could choose this strategy make sure you are pretty good with the key economic news releases, their impact over time etc.
“This trading is getting more popular among traders who need a quick profit strategy and no much time investment. By news, I mean various economic data releases like the GDP, and labor market outlook. Economic growth direct relation with future prosperity which then equals to a strengthening of the country’s currency. The market reacts quickly and traders need to take that as an opportunity. If you want to be a news trader, you will need a fundamental knowledge of different countries.” Raj shared.
5) Trend Trading: This requires technical analysis to identify the direction of the trend and to determine the suitable entry points. Trend traders generally take overnight positions. Sometimes they run a position until the trend concludes. You can make use of the trailing stops to protect the profits and winning the trade. This technique goes hand in hand with daily and weekly chart time period.
“In Forex, the rule “Make Trend Your Best Friend” often applies. But what if the trend is about to end? You need proper knowledge of wave patterns, and at the same time keep an eye on economic news. Here is a useful tip – avoid the noise of daily market fluctuations and stick with a Market Long-term Movement. Little investment on yourself and right guidance can make you a good Trend Trader,” according to Raj.
In 2019 you can make a fortune in forex trading, but don’t lose discipline and focus on the following checklist:
- What currency pair you are choosing and why?
- The key reason for deciding on a specific strategy.
- Key conditions that will trigger a sell or a buy
- The stop loss and margin levels to preserve capital.
- Deciding on the final profit level
- Ways to manage a trade for a sustained period
- Controlling your Risk Appetite
- Keeping your eyes trained on the exit route to limit your losses.
- Keeping yourself posted with the key news releases.
- Maintaining a trading journal
The best trading strategies for 2019 are the ones that are able to address these queries.
The ultimate goal is to bring in maximum gains. But, at the same time, you must watch out for your capital preservation. Leverage is crucial, so look for the most balanced options.
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