Forex trading, also known as FX trading, is the process where traders speculate on different foreign currencies for profit. It is like this, if the currency rises, the trader sells; if it falls, they buy; the difference between the two scenarios is where they gain or lose.
Unlike the popular belief that making profits from forex trading is based on sheer luck, forex trading requires strict discipline in strategies before one can make some profit off the trade. In the search for the best strategy, traders often check Telegram Forex website and it likes looking for the best strategy that works.
Also, as against the popular trend that the success of a trader in this trade is purely a gamble: a guessing process where the trader will have to predict which currency will perform better in the future, this trade requires the application of some mathematical solutions to achieve maximum outcome. Because the success of forex traders depends a lot on strategies, they never cease to keep digging for a “holy grail” type of strategy.
This is why the forex trading profession is filled with trading strategies for traders who wish to try a particular method to make a profit off their trade. Unfortunately, not all strategies work for certain traders, and some that works remain unpopular. Surprisingly, some unknown strategies are considered the most effective, and we took the liberty of detailing few of them. But before then, it is only rational we highlight some of the popular forex trading strategies among FX traders.
Popular Forex Trading Strategies for FX Traders
As previously mentioned, there are hundreds of forex trading strategies out there. Even as popular as some of them are, it doesn’t always work for some traders, but they are popular. The most popular is Day Trading. Day-trading strategy in forex trading is considered a short-term strategy and is meant to be followed during a specific trading session.
This strategy helps reduce the trader’s exposure to market movements, especially when the trader is not paying attention to market trends. Most traders in day trading rely on technical analysis that works on short-term charts showing daily price action.
The other is the News Trending strategy. This is peculiar among big-time traders who trade with big budgets and are not recommended for beginners. This strategy is mostly based on basic and technical analysis. Usually, it rewards its users based on the action they have taken after major news is released on the forex market. Traders familiar with this strategy are always abreast with the latest forex news and meticulous with monitoring major current economic data releases.
Top 3 Unknown High-Profitable Forex Trading Strategies
1. The 40 Pips Pull-back Trading Strategy
You will be surprised to notice that most forex traders are ignorant of this strategy. It is simple but very effective; the 40 pips pull-back trading strategy requires that the trader continues moving in the opposite direction should a key counter FX pair moves up to 40 pips in any direction from when the market opens for the day. Doing this is expected to reward the trader with at least 15 to 20 pips each time. Traders who use this method always believe that the market can’t move in a parallel direction.
2. Buy Above and Sell Below Moving Average Strategy
Unlike the former, almost every trader is familiar with this strategy; funny, it is grossly underrated because of its over-familiarity. This strategy requires traders to move in and trade when the candle signal doesn’t touch a moving average. It is also applied when it (a candle) closes above or below a moving average without really touching it. This strategy demands that you buy if the candle signal is above the moving average and sell if it (the candle) is below average.
3. The Three-Day Average Fibonacci Strategy
The unknown nature of this strategy is understandable; it is seen as being too complex but too powerful to ignore. Because of the complexity, those aware of it never bothered giving it the right promotion. The three-day average Fibonacci strategy requires traders to take high and low points from charts, mark the key ratios, and apply them in any trend-trading strategy.
Every strategy has its unique solution; it would be very wrong to expect one strategy to give you the same solution as the other. Again, since one single strategy can’t work for a trader, it is recommended that you try out as many strategies as you can, no matter how unpopular they are, then keep the ones that work. And remember, the more complex a strategy is, the more powerful it becomes; do not shy away from a strategy because of its complexity or unpopular nature. If it works for you, stick with it.