Forex strategies are a set of rules, techniques, methods of analyzing the market situation and various trading techniques on the market that allow you to carry out profitable and promising trading on the stock exchange.

Forex is one of the areas that most people find difficult. In fact, this is an area in which, as in many other forms of investment, a limited amount of knowledge can be dangerous. The good news for people who are not engaged in this field and are looking for the implementation of investment strategies in it is that there are enough strategies in the Forex market to meet any type of investment goal. You can just be a long-term investor, or you can sit and look at the market every day in search of profit at every possible opportunity. As fast as you want to learn Forex, you can find the most suitable strategy for you just as quickly.

The simplest strategies

Daily or weekly trend following

One of the simplest strategies in the Forex market is to follow the trend daily or weekly. Look through the daily and weekly charts and find a trend that, in your opinion, is well supported, and open a position. In this particular strategy, you should keep in mind one caveat: look at the price movement within small intervals on the chart, breaking it into intervals of 100 points. This means that you should trade fractional. When making a purchase, use a conservative distribution and gradually improve your trading. Set a reasonable stop and plan goals. It will be easy for novice traders to apply this strategy, because they do not have to constantly monitor the market, they can trade when they have time.

The strategy of earning on swaps

This is a type of strategy where you buy and hold a currency that pays a high interest rate compared to a currency that has a low interest rate. The daily transfer of a position is paid for by the difference in interest rates between the two currencies. The advantage of this is that even when your trade is not moving, your money is saved on your account every day. In addition, if you use the maximum lot size, you also get the maximum percentage of the size of your trade, and not only of the size of your capital.

The disadvantage of the strategy of making money on swaps is that, as a rule, the difference between interest rates is not so significant compared to what risk you take. In addition, currency pairs that are good for transferring trading usually react strongly to any news, which poses a danger to world markets. In other words, as long as everything is good, these pairs will grow and pay you a profit. But if something goes wrong, sometimes unexpectedly, you can lose a lot very quickly and very much. If you make the most of your leverage, you can merge your account in an instant.

More complex strategies

Intraday trading The Forex market is always in motion. 24 hours a day, 6 days a week. Although the most active periods in Forex are limited, the foreign exchange market, at least with small fluctuations, but always moves. Depending on the instrument on which you want to trade, you can really choose the time that is convenient for you to trade.

Most intraday trading strategies are associated with technical analysis, which has its positive aspects. The market can be very technical, and if you have a sharp eye and a plan of action, you can catch it and take some profit from the market.

Trading using fundamental analysis Some investors approach investments more old-fashioned. They prefer to invest in what they understand, and do not look for signals on the price movement charts of currency pairs. For this kind of more cautious investors, trading on the Forex market using fundamental analysis will be the most suitable. Trading based on fundamental analysis consists in following the news in several countries and playing on the side of the country where there is a strengthening of economic trends, and against those countries where there is a weakening of economic trends. This approach is quite easy, because it justifies hopes in the long run. The complexity of such a strategy lies in the fact that it is necessary to learn to understand economic reports and compare them between countries.

Despite the fact that Forex trading may seem difficult, anyone with patience and the ability to learn from their mistakes can acquire the appropriate skills after a while. This definitely requires some perseverance. The system is designed in a way that upsets most people. However, you should take a step back, focus on the big picture and trade a little bit, at least at the beginning. The wisdom is to avoid those "100 percent accurate trading systems designed for the Forex market" that are present on the Internet until you gain some experience of your own trading.

Trading using fundamental analysis

Some investors approach investments in a more old-fashioned way. They prefer to invest in what they understand, and do not look for signals on the price movement charts of currency pairs. For this kind of more cautious investors, trading on the Forex market using fundamental analysis will be the most suitable. Trading based on fundamental analysis consists in following the news in several countries and playing on the side of the country where there is a strengthening of economic trends, and against those countries where there is a weakening of economic trends. This approach is quite easy, because it justifies hopes in the long run. The complexity of such a strategy lies in the fact that it is necessary to learn to understand economic reports and compare them between countries.

Despite the fact that Forex trading may seem difficult, anyone with patience and the ability to learn from their mistakes can acquire the appropriate skills after a while. This definitely requires some perseverance. The system is designed in a way that upsets most people. However, you should take a step back, focus on the big picture and trade a little bit, at least at the beginning. The wisdom is to avoid those "100 percent accurate trading systems designed for the Forex market" that are present on the Internet until you gain some experience of your own trading.


Examples of specific strategies

  • RAPID-FIRE strategy
  • PIRANHA Strategy