It is very important to focus on a handful of approaches as a Forex trader. However, diversifying is what ultimately helps a trader thrive! You may hone your scalping or day trading techniques and aspire to be the best at them. But, when you have learnt multiple successful trading tactics, you will be able to enter any trading market and emerge victorious!
Here are some of the leading technical trading strategies you can follow and grow your investments!
When you conduct a trade within a day, you are day trading. Essentially, you buy and sell on the same day, so as to not fall prey to overnight fluctuations. Unlike other techniques, this one only requires holding trades for a few minutes instead of long hours or even days! With some added leverage to back you up, you can turn your small profits into huge ones!
Many people see day trading as a get rich quick scheme. However, even with its small windows and margins, there’s a lot of room for losses. With other trading techniques, there’s not much handicap. But as a day trader you will find the bid-ask spread working against you. You will have to profit consistently to breakeven and grow! That being spread, trading wisely will let you mint big money seamlessly.
Scalping is all about small profits. If you are a trader who wants to see big numbers, this tactic isn’t for you! When you micro-trade, trades will last for a maximum of a few minutes. As a scalping trader, you will look out for small trade movements and cash in every few minutes! This will require you to make several tens of trades every single day.
There is a good margin for profits, but scalping is still risky. Even though you’re trading on a small scale, there’s a lot at stake! Without ample discipline, you won’t be able to make the big money that scalping promises. Instead, your trades will collapse and lead to losses.
Swing trading takes some time to master, but then it’s a great long-term investment. As a swing trader you will have a window of up to a week to capture gains. Technical analysis comes into swing trading when you have to measure short-term momentums. So instead of fundamental analysis, you will focus more on the price movements and momentum changes.
What makes swing trading so popular is that this is ideal for people who have jobs. When you’re working, you won’t find the time to keep checking market movements! Which is why swing trading is perfect. You can hold on to trades for a long time without letting intraday movements get in the way.
As a momentum trader your job is to identify break-outs and capture them. If you find stocks moving on high volumes in a single direction, it’s time to pounce! The period for this can range from hours to even days at times, depending on stock movements.
This is a long ride! Position trading can stretch up to months at times. So if you’re a long-term trader, this tactic will work wonders. This also helps people who have arduous jobs and can’t keep watching trade markets. Even though it’s long-term, there’s a lot of profit potential here! In addition to that, you’re shielded from short-term fluctuations and risks.
With these 5 tactics mastered, you will become a pro technical trader! The knowledge these offer will take you a long way in Forex. Reach out to WesternFX today and learn how our experts carry trades towards big profits. Call us now @ +1-646-736-7401!