Trading at the world’s biggest financial market cannot proceed without a bunch of strategies. The need for the same arises due to the complexity of the market by also adding the desire to earn profits. Since that is on every investor’s mind, you require a stable process that can grant you returns. That brings us to the main topic and the need of the hour, i.e. advanced Forex trading strategies. These moves and methods have come into the picture after individuals studied the market in-depth and formed strategies that can combat its many changes. Hence, to give you a clear picture, here are some of the best-advanced Forex trading strategies.
1. Positional Trading
Positional Trading is an essential strategy that is quite different from the everyday process of Trading. It involves long term market analysis that pushes forward this method to be carried on small time frames, ultimately being a form day trading. The main aim of this strategy is to make a trader hold a particular position for an extended period. But the extent of this holding cannot be predicted since it clearly depends on a trader’s perception of the market and the amount of pips gained by him/her. Although this method of Trading tends to be small, it manages to roll in a huge number of pips. This ultimately reduces the risk since traders are not asked to put more than 2% of their funds. By doing so, they are also at a safer position when the market tends to fluctuate and moves ahead to bring in different numbers.
2. The Triangular Arbitrage
The Triangular Arbitrage is another method that is well known among professional traders. It came into existence after individuals released that they could amend ways by using aspects like currency pairs. Since the market provides an ample number of opportunities, such methods were proven to work. So by all means, the Triangular Arbitrage is a strategy that revolves around three currency pairs being used simultaneously. But to promote these transactions to bring in profits, you need to have minimum knowledge about the market, including the impact of currency pairs. Combining currencies like Euros, Dollars and Pounds, you can make this strategy work. By giving a node to the number of risks involved in the process, you will be heading in the right direction. So move ahead to learn more about this strategy by giving it the required attention and then proceed towards implementing the same.
3. Forex Scalping
Forex Scalping is an advanced strategy that every trader has applied at least once in their lifetime. It was pushed forward to be a common trend and individuals couldn’t prevent themselves from utilising the same. The main goal of this strategy was to help an investor achieve satisfactory trading profits that come quickly. For this purpose, the Trading needs to be performed in brief time frames and not short ones as we performed in Positional Trading. Due to the nature and mode of its implementation, this strategy sits well with all day traders. By conducting some effective measures to gain market analysis, traders can push forward this strategy into the successful realm. All they need to do is to take out a position for a time frame that should not exceed five minutes. This move stands to be benefitted when different kinds of fluctuations enter the market.
4. Nonfarm Payrolls Trading (NFP)
This particular strategy came into effect after individuals took note of a significant economic news of the same name. The phenomenon occurs once every month and day traders tend to get affected the most. The task at hand is to identify the possible results of NFP and then make suitable judgements as to how they might be different from the previous and forecasted values. Since a trader tends to adhere to the Forex Calendar Page, they can ensure that they have enough margin to withhold possible market fluctuations that come into the scene after the NFP results are announced. If the news tends to be the way you expected it to be, then you will gain a considerable number of pips in a matter of hours. But if it goes against your plan, then things will end up with losses. Towards the end, it is all about making pips out of a winning trade and later restructuring when your predictions don’t head in the desired direction. Hence, keep these strategies in mind to earn some good amount of profits with Forex trading.