The market price is moving under its own laws, in response to a variety of political and economic developments and takes into account changes in the balance of orders to buy and sell. Often the same factors are causes of similar movements in the market, which was, of course, seen by speculators.
Strategy in the Forex actually considered premeditated trader’s reaction to those or other events related to the market. Traders initially choose the most appropriate broker, study the trading conditions. Then, choose a merchant account: classic, market pro or ecn account, and decide whether to use an Islamic account. Traders are trying to classify the news, graphic shapes, find other patterns in the behavior of market prices, which then turns into a trading strategy in the financial market.
Imagine that people noticed rough and unambiguous market reaction to the news of unemployment, but a number of other events remains virtually unnoticed by traders. Now, knowing in advance that will be announced data on unemployment, the trader will wait for the news and prepare to open a position in the direction in which the price will start to move.
Work on Forex without strategy.
Why can not always act on the basis of the circumstances of why you need to develop a strategy? The answer to this question is strongly connected with the statistics, because it is impossible to conclude that the techniques of the trade works and what does not, if you do not try to implement his plan into practice.
If, however, specifically to test the reception only once and only once by chance see what happened (in the market in the world, etc.) and what were the effects on the market, it will not turn out to form a strategy. The problem is in the statistics, because the experiment was carried out 1-2 times, will have a huge error, which would negate the whole point of the plan.
It turns out that for the success of Forex strategy need quality-tested on a large number of transactions. Only in this way can be sure that in our hands now is a serious business method, confirmed a large number of transactions made on its rules.
I will list a few popular strategies in the Forex market:
- averaging + Martingale
- trading on the news
- short-term trading strategy (scalping)
There are other areas in trading, which are very popular, but most of the strategies found in the market today, belong to one of these categories. Each direction in Forex trading has its own strengths and weaknesses, so that the speculator, evaluating the differences between the procedures, decide for himself what he will use in the course of work on the market. In addition, Forex offers a wealth of opportunities to earn. Can i make money except trading forex?-Ask you. Of cause, you can also be a partner of affiliate program or make paid advisers.