Sponsored How to Сhoose the Best Forex Trading Strategy

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People think that you just have to find a good Forex trading strategy and you are golden. However, this isn’t quite true. There are many good, profitable strategies. The trick is to find the one that suits you best.

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The Two Types of Forex Trading Strategies

There are two kinds of Forex strategies — short timeframe and long timeframe. Both have their use cases and unique advantages.

Short Timeframe Strategies — Lots of Profit, Lots of Risks

1M-1H timeframes and do not encourage deep analysis. Instead, they require you to trade instinctively, using pre-defined trading conditions. For example, you open a position when the price enters the bounds between 50 MA and 200 MA indicators.

When trading on short timeframes, it’s very common to spend hours in front of the chart, waiting for a good opportunity. It is also very exhausting and not a lot of traders can handle it for long. However, short-term strategies bring much higher rewards, allowing you to get 20-30% of profit daily.

The best newcomer strategy for short timeframes is called Lazy River scalping. It is designed for the 5M timeframe, has simple rules and is less demanding than the other scalping strategies.

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Short-term trading is very sensitive to spreads and better suited for ECN Zero accounts like JustForex ECN Zero.
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Long Timeframe Strategies — Slow and Steady Wins the Game

The long timeframes are 4H-1W timeframes. Unlike the short timeframes, they provide ample time for analysis. And due to decade-long research by ForexFactory members, called Price Action, you can predict the future state of the market on long timeframes.

Price Action is based on the candlestick and chart patterns that appear on 4H and longer timeframes. These patterns influence the market in a similar way. For example, a Pin Bar always leads to the change of trends, while an Internal Bar indicates temporary resistance and acts as a market entry point.

Traders on long timeframes use delayed orders with automatic execution and rarely spend trading more than 2 hours a day. Price Action strategies are more relaxed compared to scalping, but also less profitable with only 20-30% of profit weekly.

Conclusion

If you can put in hours of work each day in your trading — go for short timeframes. The rewards are greater and you will hit your profit targets faster. However, if you need a fire-and-forget solution, trading on long timeframes is perfectly fine.

Either way, you are going to need a good broker. JustForex offers great trading conditions for both short and long timeframe trading, with leverage up to 1:3000 and minimal starting capital of 1 USD. They also have a fair share of educational articles that will help you learn more about Forex and design your own strategies. If you want to start making money on Forex — Sign Up right now!
 
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