You may have heard that maintaining your discipline is an important aspect of trading. While this is true, how can you apply that discipline when you are in a business?
One way to help is to have a trading strategy that you can trust. If this strategy is well designed and back-tested, you can be more confident that you are using one of the successful forex trading strategies. This will make it easier to follow the rules of your strategy – therefore, giving you the confidence to maintain discipline.
A lot of the time when people talk about forex strategies, they are talking about a specific trading method which is usually just one aspect of a complete trading plan. A consistent forex trading strategy provides profitable entry signals, but it is also important to consider below points:
- Position Sizing
- Risk Management
- How to Exit a Trade
When it comes to clarifying what is the best and best forex signals strategy for consistent profits, there really isn’t a single answer that can fully answer this question. Because the best forex strategy will always suit the individual. This means that you should create a best forex strategy that is designed taking into account your personality and that you are comfortable with. Working with a forex trading strategy made for someone else can be a disaster for you.
There are a variety of trading styles, from small time orders to large time orders, and they have been widely used over the years. It remains a popular choice from the list of best forex trading strategies in all of 2021 as well. The best forex traders are always aware of different styles and strategies in their quest for how to trade forex successfully, so that they can choose the right one based on the current market conditions.
- Scalping – These are very short lasting trades, possibly held for only a few minutes.
- Day trading or day of trading shows – as the name suggests, these are trades which are finished by the end of the day.
- Swing Trading – In this trading strategy, trades are held for several days, allowing traders to profit from short-term price patterns.
- Positional trading – Long term trend, positional trading is the demand to get maximum profit from major changes in prices.
Daily Charts Strategy
The best forex traders swear by the daily charts on more short-term errors. There is less market noise involved with daily charts, compared to the forex 1-hour trading strategy, or those with shorter time-frames.
These types of charts can give you over 100 pips a day due to their longer shelf life, which has the potential to result in some of the best foreign trades and the method is based on 3 main principles:
1. The trend of the figure:
The trend of market consolidation, and this process is repeated in cycles. The first principle of this best forex strategy is to find long drawn moves within the forex markets. One way to identify forex trends is to study 180 periods of forex data. Identifying the highs and lows would be the next step. By referencing this price data on the current chart, you will be able to identify the direction of the market.
2. Stay focused:
This requires patience, and you have to control the urge to get into the market quickly. You need to stay out and protect your capital for a big opportunity.
3. Low Leverage and Large Stop Loss:
Be aware of large intraday swings in the market. Use large stops, there is no point risking large amounts of your capital.
Being successful when trading forex can be tough, but that doesn’t stop us from having a crack every day – some more victorious than others. Thankfully, there are plenty of tools available to guide us in making such challenging decisions. The choice of indicators and charts provide insight into forex price trends, market sentiment and price history.
Below is the list of top 7 best forex indicators – all of which you can add to your currency trading strategy.
- Relative Strength Index (RSI)
- Moving Average (MA)
- Moving Average Convergence Divergence (MACD)
- Exponential Moving Average (EMA)
- Fibonacci Retracement
- Average Directional Index (ADX)
- Standard Deviation (SD)