Forex Trading Strategies for Traders in 2021

Are you a Forex trader? Do you know the importance of implementing strategies in Forex trading? Well, as a forex trader, it is very important to implement strategies in your trading because trading forex with strategies can help you in making informed trading decisions and eliminate guess work from the process.

There are various forex trading strategies available which are legal to use, however, before selecting a forex trading strategy, it is important to understand the basics about the main strategies. You should select a strategy which suits your trading style and personality. For example, every forex trader does not want to keep them glued to the screen all day long, therefore they will look for a strategy which allows them to make trade decisions in less time.

After you have finalized a strategy for trading, you should test them using back testing methods.  Let us now take a look at 5 of the best forex trading strategies available in the market.

Table of Contents

Forex Trading Strategies for Traders in 2021

• Scalping

• Day Trading

• News Trading

• Swing Trading

• Trend Trading

Scalping – This strategy involves placing multiple trades with a very short horizon. It allows the investor to make multiple small profits. The investor needs to be very fast when it comes to entering and exiting positions. The time difference between entry and exits is usually a few seconds or minutes. Scalping is recommended for full-time traders.

Day Trading – As the name suggests, the trades placed using day trading strategy are only for a single day. This means that a day trader should not carry forward any trade overnight. A trader should enter and exit all his positions on a single day. This reduces the risk of losses due to market movements when the trader is inactive in the market.

News Trading – This strategy is recommended for seasoned traders. They are based on technical and fundamental analysis of the market movements. News traders aim to make the most out of the market volatility which is observed just after the release of certain news or events. These traders monitor economic calendars and observe market movements before the event to analyze possible resistance and support levels.

Swing Trading – Swing Trading is also known as momentum trading. This is a short to mid term trading strategy as it requires the traders to hold their positions overnight for a few days to expose them to more market movements. These traders make the use of some momentum indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) etc. for analyzing entry and exit levels.

Trend Trading – This strategy is recommended for long term traders and requires you to follow a trend which is prevailing in the market. The main idea behind trend trading is to buy during market pullbacks and sell when the market rallies. Trend traders use technical analysis and indicators for analyzing market trends. As a trend trader, it is very important to put a trailing stop loss for all your orders.

Conclusion

Before implementing any forex trading strategy, you must check its compatibility with your trading style. Implementing these strategies requires technical and fundamental analysis and also requires the use of various market indicators. Alternatively, you can also trade with the help of Forex Privilege which will provide you with a dedicated research analyst for all the research and analysis work to ease out your forex trading experience.

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