Trading strategies

Trading strategies are the algorithms and rules that traders follow in order to obtain predictable results and profit. The section presents multicurrency, arbitration and scalping strategies, principles and basic requirements. The strategies of the pending orders and classic Alligator and their strengths are highlighted. Both beginners and experienced traders will find a strategy they like.

Forex - a place where people come to seriously earn and learn a maximum financial benefit. Every beginner in this case people are wondering how to stop rely on fate and what you need to do to get a good return on a regular basis.

People come to the foreign exchange market is always with one purpose - to make money. The investment industry has been around for a long time. Over the decades of its development it had time to acquire all sorts of brokers, dealers, training centers and other institutions. The new man is easy to just get lost in all this abundance of difficult words and definitions.

For the success of the novice trader, you must first learn how to be the issue. To understand the market, the legal field, tactical methods. Of course, to understand the specifics of currency trading will not be superfluous, but it isn't so necessary that devoting a lot of time. But a credible strategy - is something that should be of paramount importance. Forex strategies for beginners is conceptually no different from methodologies to market professionals.

Among the infinite diversity of various trading systems and indicators on the foreign exchange market, the ordinary trader is easy to get lost. Methods of estimation of price movements have become popular and play major roles in making trading decisions. The use of indicators has its pros and cons. But in this article, we talk about how to trade, which do not involve the use of any additional analytical tools.

Forex strategy without indicators can be based both on visual graphic signals, and be completely fastened only on money management. Such strategies are popular among different types of traders. Fans of forex strategy without indicators prefer to rely directly on the dynamics of prices, not the late data from the oscillators and togas on.

Depending on the time of the global foreign exchange market, there are several trading sessions - Asian, European and American. It's no secret that the various trading sessions in different currencies of different driving dynamics. Therefore, there are certain strategies in Forex trading, depending on the current time and the trading session.

First we need to define the favorites of each session. During the Asian session, the highest activity on the basis of historical data, show the following currencies - GBP/JPY, EUR/JPY and AUD/JPY. As you can see, the Japanese yen appears as a driving currencies during trading in Tokyo, and operates the Australian Stock Exchange, so the Australian dollar also shows high activity. For trading during the Asian session characterized by the following factors:

Trading binary options for the most part is not very different from the traditional trading currency on the forex market. From an operational point of view, everything is simple, you either sell (put), or buy (call) option on a particular asset, such as a currency pair EUR/USD, and the outcome is determined by the option's expiration time. In the case of binary options no matter how far and how many points was the price of the selected asset, it's important only to find - above or below a certain level. The similarity of the principles of trade makes trading strategies for binary options similar to the strategies in the forex market.

So how to trade binary options, it's important to the future position of the price, very popular trend indicators and oscillators. Let's look at trading binary options strategies for using them.

In the currency market - forex trader is a measure of the success of its earnings and profits to a greater extent depends on the trading strategy he uses. Therefore, to find or create a profitable trading strategy is an aspiration of any trader. If you enter a query on the Internet - profitable trading strategy, the search engine will give you thousands of results, and they will dazzle the names of "win-win strategy of forex", "100 % profit", "double the bill for a week" or "secret millionaires profitable trading strategies". Of course, it's naive to believe that this way in front of everyone in the public domain are the sources of wealth. In this article we look at how to distinguish between a regular pacifier from potential operating strategies, how to create their own profitable trading strategy and whether to pay attention to the paid strategy.

Anyone who starts to learn a profession trader, almost immediately learns to discover one of the main predictors of success - the presence of a trading strategy. Sooner or later come to the realization that, after reading the book, an online forum or watching instructional videos. The presence of stable and most importantly understandable strategy for a trader is in fact the first and one of the most important items.

Now on the Internet you can find hundreds or even thousands of trading strategies. Through them all individually, and even more testing and life is not enough, so in this article we will try to highlight the main examples of trading strategies and create a classification for them.

When a trader makes transactions in the foreign exchange market, it's usually valid for a certain predetermined plan, which, in turn, is part of a trading strategy. The presence of a specific set of rules for trade is a necessary condition for profit in the market. Statistics show that the most successful traders have in their arsenal of one or more trading strategies.

Strategies can be based on different indicators, both fundamental and technical. For example, the formation of the system of orders before the release of important macroeconomic statistics - this is a simple trading strategy that operates excessive emotional reactions of market participants. There are also sophisticated approaches to predict price movements. This may be a trade system based on a set of indicators, filters, as well as inter-market correlation relationships.

To date, there are so many different strategies to work in the foreign exchange market. Exploring the market laws, traders and analysts create trading strategies. In this article, we will focus on the system LSFA. This trading system is not like most common forex-strategies. Despite its uniqueness, it's extremely simple to use and understand the logic of its actions.

Any person who has decided to engage in speculation on the financial markets in the first place trying to find a profitable system for the job. The statistics in this industry tells us that about 95 % of traders lose money on the stock exchange, and only 5 % of the total mass in the end make money. In the currency market, the trader has to deal with a lot of leverage. Lose capital in such conditions is very simple. And there is a break-even strategy forex? Is there a system that guarantees a profit?

It's no secret that doing business within the day is the most common and accessible type of trading. Intraday trading or intraday refers to short-term trading and most traders prefer to use daily forex strategy, rather than the long-term.

Any beginning trader starts searching for trading strategies, that would make him a billionaire after learning the basics of trading and facing first troubles. The desire itself is a good one and there is nothing wrong with not being too original in trading. However this is where a trader might encounter standard traps, that is why it is worth noting a couple of important details in looking for “your own” strategy.

First of all, forget about buying someone else’s system. You will be able to evaluate usefulness of a system only after trading with it for some time. Quite often the systems that are sold do not have a good quality. Since nobody is willing to part with a profitable source even for a reward. And even a good profitable strategy might be of no use for another trader.

For minimal human factor influence on working data on financial markets, the mechanisms of objective reality identification are included in trading strategies. Most frequently forex market indicators are these mechanisms, that trace impartially market situation development and give structured information to the trader for trading decisions.

Despite the difficulty of previous wording, the essence of indicators is easy: to trace determined activities and to produce them in a processed form for a trader on specified algorithm. As in any area indicators may tell the trader and its trading system when to do what and warn about a critical situation.

Forex indicators have statistical mathematical algorithm that transforms quotations into necessary activities for a decision making. Thus the most important factor in indicator usage is comprehension (or creation, if we are talking about a proper unique indicator) of this mathematical algorithm. The knowledge of algorithm of indicator computation is essential for understanding the finite data shown by the indicator. The correct interpretation of the data displayed by indicator is also very important. Since same results may be interpreted differently which is inadmissible for systematic profitable trading.

That is why the best forex indicators for traders are those indicators, the mechanisms of which they fully understand and can confidently interpret given indicator in any situation.

A trader has only two real instruments for market analysis and decision making: fundamental and technical analysis. If fundamental analysis can have several approaches and at the same time one event can be perceived in a different way by different traders, then technical analysis means unemotional trading decision making method based on invariable indisputable facts.

Technical analysis of forex market includes two large blocks of analysis that can be used together as well as separately:

1. Graphical analysis.

2. Analysis based on indicators and algorithms.

Graphical analysis consists in visual analysis of quotation graph. Quotation graph can be of three types:

After learning trading basics and stockmarket rules or technical background of working on forex market any beginning trader starts to explore and then work out his own trading strategies of the forex market that he is going to use while realizing a dream of financial independence.

Naturally, profitable trading strategies on forex market include a set of instruments and rules, according to which deals are made. One may single out the following forex strategies, according to set of rules, instruments of analysis and decision making:

Fundamental forex strategies involving only instruments of fundamental market analysis. The decisions are made only according to analysis of macroeconomic and political events or market participants’ expectations. Given strategies do not determine exact entry and exit points, also they imply possibility of considerable floating deposit slump and a comparatively low profitability.