FXLORDS Increase Your Profits
Should I trade Forex everyday ? This is a question often asked by beginner in Forex trading but even advanced trader don’t know the answer to this question, because the fact is, there’s no one right answer for it.
The reason we have more than one answer to the question of trading Forex everyday is that first it primarily depends on the trader’s level of experience and second on his preferences, so there is not limited ways of trading Forex, therefore there can’t be one right way of doing it, however, there’s preferred ways that shown success in the past. We will discuss here a few of the “Right” ways that most traders follow.
The first way of trading Forex is Trend Following, which might be the easiest way of trading because it has one rule; follow the trend. Following this way of trading means that you buy low, and thus guaranteeing a good price for your asset, and you sell high, and thus a good return on your investment. Learning techniques such as averaging and hedging can be very beneficial for trend followers.
The second way of trading Forex is Scalping, which might be the preferred way to a lot of traders, unfortunately, to be a scalper, you have to have a success ratio of 70% and above, otherwise, your scalping strategy is going hurt your account.
Moreover, The scalper has to trader almost everyday to make trading Forex beneficial to him, other wise, the returns are so low it’s not worth trading in the first place. The trader has to be very strict with his Stop Loss, in order for his winning positions to cover his losing ones, and make a reasonable profit.
The third way of trading Forex is Event Trading. Following events and economic releases is important for all kinds of trading, but using this way and this way only means that you trade economic releases that you expect to have a big enough impact on the market that will allowing to take a position a bit before the release and close it a few minutes after the release.
One important aspect of Event Trading is that the probability for a losing position is high, and so the success rate is low compared to other ways, simply because they depend on events, which are highly unpredictable. Therefore, using this way of trading involves using techniques such as average and high volume trading. This way requires trading almost everyday, or days with important news.
The forth way of trading Forex is Long Term Positions, which usually characterized by far targets which might take 6 months or a year. They usually mean that position are cluttered around significant tops and bottoms. This method involves using techniques such as averaging.
Now no matter which one you follow, making sure that you fill the required and follow your plan is the key, otherwise come back to this list and reevaluate your trading methods and try trading another way, usually change is good in this sense.
