There are various strategies for trading Forex. These strategies can be divided into different groups depending on the basis for the strategy. Grouping strategies based on the time it takes to complete a trade results in three types of Forex trading strategies namely scalping strategies, day trading strategies and long term trading strategies.
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Forex scalping strategies are strategies which allow you to enter and exit the market very quickly. The trades in these strategies last from a few seconds to a few hours and generally positions are closed within the same trading day. Scalping strategies can be based on either technical data which is gained from the Forex charts themselves or fundamental data like a particular news release. Generally scalping positions are small positions which risk very few pips and whose returns are often smaller as well. Profit targets of 30 to 100 pips are generally considered normal within the the scalping range of profits.
Long term strategies are trades which are left open for weeks or months. Strategies for this type of trading are generally based on economic outlook and market sentiment. Long term positions aim at far bigger profit targets than scalping positions but also have far higher stop losses which mean greater risks.
Day Trading is the happy medium between scalping the Forex market and long term trading. Day trading generally encompasses positions which are left open overnight or left open for a few days at a time. Day trading has become a very popular method of trading Forex because it allows you to trade and have a full time job at the same time. And with the number of new traders entering the market trying to use Forex as a way to make ends meet, day trading is increasing in popularity.
Day trading strategies generally tend to be based on technical data and include strategies which take trades based on indicators or day trading strategies trade based on price action or the recognition of certain price patterns.
How To Find A Good Day Trading System
Because of the increase in the number of traders wanting to find good day trading systems, there has been a sudden increase in the number of day trading courses available to train trader to day trade. And a number of these courses are either scams or scanty excuses for trading courses at best. The best way to find a good day trading system is to come prepared, so to speak.
Find The Indicators Or Style Of Trading You like
First, find out what kind of technical data you like use for trading. You may find you are able to spot price patterns easily, but can’t seem to understand lagging indictors. You may find you prefer price action and no indicators or you may find you take to indicators but can’t spot patterns for love nor money.
Whatever the case may be, you will find a lot of free information on the most common trading techniques used for Forex trading and most likely find a few free day trading systems based on those techniques. Try a few of the free systems first. See if the technique suits you. If you have no experience, then try a few different techniques first to see how they differ. Try a few of the indicators too to see which indicators you enjoy using. You may find a combination of price action and indicators works for you. The truth is all price action, price patterns and indicators work and the best day trading system for you is the system based on the technique you have an affinity for. Once you know which indicators and techniques suit you best and which don’t work for you then you can begin to look for courses which are based on those techniques or indicators.
Do Some Research On The Techniques That Interest You
Once you know more about your trading style, you can begin to research the options available to you as day trading systems. A great place to search for free webinars and courses on a particular trading system is FxStreet. They offer a number of free pre-recorded webinars run by professional traders and these webinars often give you great insight into different day trading systems and what they entail.
Another good site for research into the various day trading systems available is ForexFactory. There are a number of free day trading systems which you can try out to see which kind of strategy suits you.
Once you have good idea of the strategies that work for you it is time to start looking for a mentor who can show you how to fine tune your trading and make consistent returns. To find a good mentor is easier said than done, but there are a number of good day trading courses which offer some sort of mentorship and course program to ensure your day trading system gets on track and stays on track.
One of the best Forex day trading courses and mentors I have come across is the course offered by “The Forex Trading Coach”. The Forex Trading Coach offers various levels of course from a home study course to personal mentoring and may suit your trading approach.