How Can You Choose Trading Strategies for Yourself?

The foreign exchange market, known as Forex, stands as the largest currency exchange platform in the business world, and it can be accessed online. Statistical data reveals that trillions of currencies are bought and sold on this platform daily. Many individuals aspire to enter this market with hopes of earning substantial profits. However, they often find themselves at a loss, unsure of how to commence their journey.

We recommend that newcomers begin by mastering the fundamental terminologies right from the outset. Acquaint yourself with each term and progress steadily. Novices can become easily overwhelmed, especially when confronted with the complexities of trading strategies, as they struggle to determine which approach suits them best. Fear not, for by the end of this article, you will have a better understanding of which plan may align with your goals.

Various Forex Trading Strategies

Let's explore some of the top-rated strategies in the Contracts for Difference (CFD) industry:

1. Bladerunner Trade: This strategy, often referred to as the price action strategy, is adaptable for use in both lower and higher timeframes and across various currency pairs.
2. Fibonacci Pivot Trade: Leveraging regular pivot points, this strategy can be extended to higher timeframes. It combines Fibonacci extensions and retracements to inform your trading decisions.
3. Bolly Band-Bounce Trading: Ideal for a market that is consolidating or moving sideways, this strategy can yield even better results when used in conjunction with a confirming indicator. Those unfamiliar with Bollinger Bands should consider exploring this option, especially traders in Hong Kong.
4. Overlapping Fibonacci: A favorite among intermediate traders, this strategy can be relied upon. However, experts recommend that beginners combine it with confirming signals to enhance accuracy.
5. Pop N Stop: Designed for situations where prices rarely rise, this strategy is best avoided by beginners who lack experience in handling such scenarios. It essentially alerts you to potential risks.
6. Forex Fractal: While more of a theoretical concept, investors can benefit from a deep understanding of this theory, offering insights into the fundamental factors governing this industry.

These are the six most popular ETF trading plans you should familiarize yourself with. Choosing one depends on your psychology, risk tolerance, and the amount of risk you can comfortably assume. Beyond these strategies, another essential aspect that every beginner should be aware of is trading styles.

FX Trading Styles

In the world of currency exchange, there are several trading styles. In this discussion, we will focus on two styles that are particularly popular due to their varying levels of complexity.

1. Scalping: This stands as the most challenging and risky trading style due to its short timeframes. Scalpers must make quick decisions and execute trades within minutes. For newcomers, the demand for expert technical analysis skills can be daunting.
2. Position Trading: This style is often considered the easiest and most suitable for beginners, as it does not require swift decision-making. Traders can take their time studying price movements, and professionals often recommend it for its lower risk profile. The trade duration is more extended, allowing for positions to be held for several weeks, providing ample time for skill development.

Ultimately, the choice of trading styles and strategies is highly dependent on the individual investor's psychology. It is advisable to test these approaches in a demo account to determine which one aligns best with your goals. We strongly advise that every novice trader commence their journey with position trading.