Every trader who starts in the forex market, whether a beginner or a professional should work with the most convenient and profitable trading system for yourself. trading strategies is one of the basic elements of the trading system. No doubt there are many trading strategies in the Forex international currency exchange market, but it does mean that each of them can be applied by all traders. Before developing a trading system, the trader must decide which strategy is most appropriate. It should save time looking for the most convenient system. In order to decide on the trading strategy you have to take into account two main factors, which are: Personality and internal constitution and financial capabilities.
Most of the “traders” (merchant) always make a big mistake when following a trading strategy that is not natural for them. The biggest problem is that most traders, regardless of their trading experience, do not think about it. The second reason is the lack of financial resources (capital investment) in order to choose the most relevant trading strategy. Consequently, a trader does not have any other way, except for the choice of a strategy that meets the small capital requirements, having regard to the first component.
We consider all trading strategies as follows:
Intraday trade
Adherents of this type of trade are mostly beginners, it is connected with the dynamics of the currency market that attracts beginners. intraday trade has the following peculiarities:
• Positions can be opened during a trading day and by the end of the day, they should be closed or, in urgent cases, held over the next trading day with the creation of protective orders;
• All transactions are short term and meant to take only part of the profit;
• Within a day, the number of deals can be more than one;
• intraday trading does not require large financial investments;
• Working time interval is minute charts.
intraweek trade
As a general rule, traders, disappointed in intraday trade, try this strategy. intraweek trade has this movement of furious market and in intraday trade. It may seem that the market is stopped. But it is only at first sight. intraweek trade has some peculiarities as follows:
• A trade can remain open for ten days;
• All transactions are counted on taking most of the profit on the movement of the market;
• As a rule, no more than 2 positions are open for a week;
• Requirements for the funds invested are much higher for intraday trading;
• Working time time is multi-time graphics.
Positional trade towards positive exchanges
As a general rule, the positional trade is only used by merchants patient. Positional trade differs from the previous two by a trader pressure and, in addition, a trader has more time. Positional trade has the following characteristics:
• Working time interval is daily and weekly charts;
• A trade can remain open during the months;
• Requirements for the capital invested are the highest compared with intraday and intraweek trades;
• An option to be out of the market during the correction periods is available.
Probably every trader can find additional definitions of strategies, but the base is one of these strategies to become right for you. To each trader to be able to choose the most appropriate strategy for him / her, let’s consider what strategies are applicable to different characteristics of a trader. However, choosing the strategy is the responsibility of traders.
Advantages and disadvantages of the intraday trade:
advantages:
• Large capital is not necessary;
• Trader can stop trading at any time;
• Minimal risk;
disadvantages:
• High emotional pressure;
• a long time to cool off is required;
• Lack of time during a trading session.
This strategy is suitable for traders with a high strength and virile character, quick reaction and strong nerves.
Advantages and disadvantages of intraweek trade:
pros:
• negligible pressure;
• High profitability;
• Less time is required to cool;
• There is free time during the trading session.
Cons:
• need significant funds;
• Trader may be out of the market during the trend correction;
• Inability to stop trading at any time;
• The need to maintain the open position for 24 hours.
This strategy combines with merchants that combine qualities such as ability to work, deliberation and reflection, because the first time the trader will have to monitor the positions 24 hours a day, analyzing all market changes. It is really timely for the market trend formation. Meanwhile, the use of multi-downtime will be uncomfortable for you because of the signs which are formed on the bars night.
Positional trade:
pros:
• A lot of free time;
• No emotional pressure;
• No need for refreshment.
Cons:
• Periods of absolute inactivity;
• Inability to prevent trade at all times;
• Limited number of currency pairs to trade;
• huge capital requirement for trade.
Most of the “traders” (merchant) always make a big mistake when following a trading strategy that is not natural for them. The biggest problem is that most traders, regardless of their trading experience, do not think about it. The second reason is the lack of financial resources (capital investment) in order to choose the most relevant trading strategy. Consequently, a trader does not have any other way, except for the choice of a strategy that meets the small capital requirements, having regard to the first component.
We consider all trading strategies as follows:
Intraday trade
Adherents of this type of trade are mostly beginners, it is connected with the dynamics of the currency market that attracts beginners. intraday trade has the following peculiarities:
• Positions can be opened during a trading day and by the end of the day, they should be closed or, in urgent cases, held over the next trading day with the creation of protective orders;
• All transactions are short term and meant to take only part of the profit;
• Within a day, the number of deals can be more than one;
• intraday trading does not require large financial investments;
• Working time interval is minute charts.
intraweek trade
As a general rule, traders, disappointed in intraday trade, try this strategy. intraweek trade has this movement of furious market and in intraday trade. It may seem that the market is stopped. But it is only at first sight. intraweek trade has some peculiarities as follows:
• A trade can remain open for ten days;
• All transactions are counted on taking most of the profit on the movement of the market;
• As a rule, no more than 2 positions are open for a week;
• Requirements for the funds invested are much higher for intraday trading;
• Working time time is multi-time graphics.
Positional trade towards positive exchanges
As a general rule, the positional trade is only used by merchants patient. Positional trade differs from the previous two by a trader pressure and, in addition, a trader has more time. Positional trade has the following characteristics:
• Working time interval is daily and weekly charts;
• A trade can remain open during the months;
• Requirements for the capital invested are the highest compared with intraday and intraweek trades;
• An option to be out of the market during the correction periods is available.
Probably every trader can find additional definitions of strategies, but the base is one of these strategies to become right for you. To each trader to be able to choose the most appropriate strategy for him / her, let’s consider what strategies are applicable to different characteristics of a trader. However, choosing the strategy is the responsibility of traders.
Advantages and disadvantages of the intraday trade:
advantages:
• Large capital is not necessary;
• Trader can stop trading at any time;
• Minimal risk;
disadvantages:
• High emotional pressure;
• a long time to cool off is required;
• Lack of time during a trading session.
This strategy is suitable for traders with a high strength and virile character, quick reaction and strong nerves.
Advantages and disadvantages of intraweek trade:
pros:
• negligible pressure;
• High profitability;
• Less time is required to cool;
• There is free time during the trading session.
Cons:
• need significant funds;
• Trader may be out of the market during the trend correction;
• Inability to stop trading at any time;
• The need to maintain the open position for 24 hours.
This strategy combines with merchants that combine qualities such as ability to work, deliberation and reflection, because the first time the trader will have to monitor the positions 24 hours a day, analyzing all market changes. It is really timely for the market trend formation. Meanwhile, the use of multi-downtime will be uncomfortable for you because of the signs which are formed on the bars night.
Positional trade:
pros:
• A lot of free time;
• No emotional pressure;
• No need for refreshment.
Cons:
• Periods of absolute inactivity;
• Inability to prevent trade at all times;
• Limited number of currency pairs to trade;
• huge capital requirement for trade.
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