Be it a job as simple as making coffee or something as complex as trading currencies - a strategy is a requisite. Say you ended up adding salt instead of sugar, what good a coffee would it be, right? The same analogy can be used while Forex trading in Philippines. When you try to trade without having a powerful strategy, the outcome will be worse than having salty coffee! A Forex trading strategy gives you direction, goals and illuminates the path ahead, so you can walk down without tumbling. As a currency trader, you will find yourself in a field that is incredibly flexible.
Novice traders can implement simple strategies while the experienced can work with complicated approaches - and both can see stellar profits!
Be it a rigorous, time-intensive approach or a calm, long-term plan, you can choose from a variety of Forex trading strategies, and here are the 6 best ones:
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| 6 Forex Trading Strategies to Try in 2019 |
1) Trend Trading: Undoubtedly one of the most successful Forex trading strategies in practice today, the trend trading approach requires immense amounts of patience, but pays off big-time. Just like the name suggests, you trade the trend. With this approach running, you will have to study trends as they rise and fall. What makes trend trading challenging is that you have to employ analytical methods like technical and fundamental analysis, to read market changes and make accurate calls. Aspects like trend momentum, strength and the general life of a trend have to be measured.
These points will let you judge how viable a trend is and measure the value it carries, allowing you to invest wisely and make the most out of each trade.
2) Price Action: Price action is a trading strategy employed by a number of Forex traders due to its easy-to-use nature. By studying the movement of price value, you get to gauge its credibility. With a keen eye, you can understand what's influencing the bulls and the bears of the market and accordingly make your trade. A bullish Forex trading market means you should buy, and a bearish one indicates a selling trend. A number of indicators and methods like candlesticks, support/resistance charts can be used to analyze the trade.
What makes the price action approach so favorable is that you can use this on markets that are volatile, stable or ranging - pretty much anywhere!
3) Counter-trend Trading: Known for the tremendous success rates, the counter-trend Forex trading strategy can be just as confusing as it is viable. Traders often employ this solely out of a reliance on that success rate! Trend reversals are banked on in this approach. Counter-trend trading is times more complicated than trend trading because predicting trend reversals is a difficult task and involves rigorous analysis.
4) Breakout Trading: Trends are everywhere while Forex trading in Philippines; either they are forming a new, or breaking out. The breakout trading strategy sees traders enter exchanges just when the market is breaking out of a new trend. In this emerging trend, if the price is seen moving beyond the resistance level (breaking out of it) a bigger hike can be expected. Likewise, if the support level is broken, it should be acknowledged that selling is the best move.
5) Range Trading: As a range trader, you enter the Forex trading markets with an assumption that the currencies you are working with will hold stable values for a certain time period. Keep two points in mind - the point where a seller sells, and a buyer buys; these price points are the extremes between which a certain currency value is expected to be in. The supply and demand ratio is one of the key factors affecting said price points, and as an adept trader, you will have to be aware of the current economic state of the currencies you are trading.
6) Scalping Strategies: Scalping is one of the most profitable strategies implemented while Forex trading in Philippines, but rigorous all the same. An incredibly short-term trading strategy, the trades last only for a few minutes tops! Scalpers have to work many trades a day, each lasting from seconds to minutes, and make small profits. Don't be misled that the short nature of these trades is synonymous with lack of profit.
As a scalper, you will make small profits, but this will all add up to one large sum at the end of a day - which is the time limit for every scalping trade!
The coming years are very promising for all those participating in Forex Trading in Philippines. Profits lie in waiting, and with a strong strategy to work with, you can see consistent victories. Come sign up with WesternFX today, and strengthen your Forex foundation. With our experts to help you through all your trades, success will come by in no time! Call us today and our executives will get you started in a jiffy.
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