Use Forex trading strategies, which one should I?

Be aware of if you have selected or several times, should actual trading, are there many Forex trading strategies used can be. Each approach has different advantages and disadvantages of various facts and data, and work well in a particular currency pair.



Forex trading strategies can be basically divided into two main:



1. technical analysis



This strategy is based on data from previous market of especially charts future predict price direction. There are different methods to read data, such as candlestick form or wave, but above all they are looking Elliott to templates to plan and are looking for links between the various indicators such as price and volume.



Most players prefer this strategy, and they use every day to meet the best entry exists. Usually the operator has their own way to interpret the data with different characteristics, and has been designed for a specific market and it is these differences in methods, they have different victory, although they may access information. A dealer with the best will receive higher profits.



2. Fundamental analysis



This strategy must be performed by an analysis of the various economic factors such as interest rates, wages, production, handling and General State of the economy, which enter and leave decisions to create. For example, some news, that non-farm payroll or wholesale may have significant effects shares on the market. If you can analyze the messages from the, you can protect your position and maintain profits.



In some cases, the importance of the implementation of certain individuals who have a large impact on the economy. Meeting on the new rate or inflation make a big impact in currency values. Typically you will use too late in the market, after the results were announced, therefore, do this to analyze current data and to anticipate results above.



Not only short-term trading, fundamental analysis can be used in long-term Forex trading strategies. It is quite complicated, but basically you expect future trends on the market, based on both the new policy will influence in the long term the market.



There are also other methods in Forex trading strategy of technical and fundamental analysis, such as such as scalping.



Scalping



Scalping is make a profit from the time he achieved a considerable amount for a mail merge. This requires the dealer to the majority of their time look at their jobs, but it might be easier with automated trading software. For example, If is to win a small movement on the market labeled as profit potential, he this opportunity take, although it only his 5 pips profit.



Not all the players realize, because it involved requires patience, quick decisions and not emotions. Winning their strategy with strict discipline, even if he can do more, he see as planned, get a small profit and continue with the next order.



If not already familiar with Forex and Forex trading strategies, which are then I recommend you first learning technical analysis is essential for almost all of the strategies.