Everyone knows the Forex market is one of the most sophisticated investment industries in the world. If you fail to control your greed, you are most likely to lose your investment. Even after having enough money to invest, there is no assurance you will make a decent living out of trading. However, many retail traders in the United Kingdom have already changed their life based on currency trading business. They know the perfect way to deal with the losing trades. Learning to lose trades is the most difficult task for novice traders. Once you learn to manage your losing trades, you can make a decent profit with a balanced trading strategy.
So, which strategy do professional traders follow? There is no exact answer to this question, however, we will highlight the four most popular trading system used by the pro traders.
Swing trading method
Swing trading strategy is mostly based on position trading method. The experienced traders find the key swings of the market and execute the trade with simple price action confirmation signal. In order to find the key retracement point of the market trend, the uses Fibonacci retracement tools. Being a new trader you might not understand the basics of these tools. To make things easier, you should only trade the 50% and 61.8% retracement level. The novice traders often set pending orders at these levels but the pro traders prefer to use price action signal. By using the Japanese candlestick pattern you can easily increase your win rate.
Trend trading strategy
The trend is your friend. The experienced traders are trading CFDs with Saxo with simple trend trading technique. They never execute any trade against the market trend since it results in heavy loss. Being a new trader in the Forex market, you have to understand the importance of trend trading strategy. Use the demo account offered by Saxo to learn how the simple trend line trading technique works. Being a trend trader, make sure you focus on the daily and weekly time frame. The new traders often things this a bulletproof trading system and they will never lose money. Always remember, even the long term trend is subject to change.
Scalping is mostly used by experienced UK traders. Some rookie traders often try to scalp the market with a hope to make more money. Being a scalper you need to understand the associated risk with big position size trades. If things go in favor, you can easily make money. Similarly, when things go wrong, you might even lose a big portion of your investment. Unless you have extensive experience with the Forex trading industry, you should never try to scalp the market. Try to become a position trader or look for trading signals in the higher time frame.
Chart pattern trading strategy
Chart pattern trading strategy is mostly used by the intermediate and professional traders. As a chart pattern trader, you need to focus on the higher time frame since it will give you high-quality trading signals. Never think you can earn huge amount of money without doing the proper work. You have to learn the details of the different chart and practice those trading strategies in the demo account. It’s true that, learning the chart pattern trading technique requires time but once you master this, you can easily ride the long term market trend. Even you can trade the major reversal of the market with an extreme level of precision. Being a chart pattern trader, you also need to learn about the fundamental factors of the market. This will help you to assess the strength of the market trend.
Becoming a successful trader in the Forex market is not all easy. However, if you follow the footstep of the successful trader things will become easier. Always trade this market with strong confidence since it will help you to overcome losses.