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Stella

Which methods can I use in Forex trading?

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Hi Stella,

Forex market is widely used by many investors whose main aim is to magnify their gains. Maybe you are just getting started in this market, and you do not know the right methods that will help you profit in this market.
One method you can employ in the Forex market is the use of Forex signals. Subscribing to a forex signal service is one step to getting to use them, especially if you just began Forex trading and lack ample time to learn the trading techniques you can use. You need not be glued to your screen monitoring this market all through; you will follow what the service recommends you to trade. To get a good Forex signal service, you can test using a demo account and understand how it works.
You can also employ a Forex Robot. These robots are a great way to increase your gains. However, these robots need to be optimized all the time, depending on how the market changes. If you do not know much about the robots, then it is a hustle for you to optimize them.
Another method you can use to trade in the Forex market is by use of managed Forex accounts. You will employ a professional to run this account for you while you pay him a certain fee. You have total control of this account, and you can withdraw from it ant time you want.
You can also trade in a Forex market manually, which means that you sit in a computer, analyze the market, and place trades by yourself. To succeed in this method, you need to have a thorough knowledge of how the Forex market works. You need to spare a lot of time to learn how to trade and practice a lot to up your trading skills.

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Hello Stella,

In our lives, we are required to have strategies that we deploy to succeed—the same works for
forex trading. You cannot just start trading without a plan; otherwise, you will end up doing zero
work. There are several trading strategies which all work for different people depending on your
needs. An approach can work for you correctly and, at the same time, destroy a different person.
All you need to do is research and analyze all the strategies and come up with the ideal method
to deploy. Methods of trading vary depending on the duration which you hold trades, all of them
have their pros and cons. Examples of ways you can use when trading is swing trading, scalping,
day trading, position trading, and trend trading strategy.
Swing trading is one of the most used methods, which is a medium-term trading strategy where
traders gain profits from short-term price patterns. A trader is required to refresh the bars every
one or two hours. The main activity here is keeping a close eye on the top and bottoms of bars
and choosing to enter or exit long or short term positions. You will need to use oscillators and
indicators to pick out optimal entry and exit times and positions.
Pros
 Profitable
 Adequate trading opportunities
 You don’t have to leave you fulltime occupation
Cons
 You cannot handle significant trends
 You are prone to overnight risk if currency pairs go down
 Require strong technical analysis

Day trading is another strategy you can use for forex trading. Under this method, traders make
trades are usually closed before the end of the day. This means that you can create multiple
trades in one day, but the deals will close before the day ends. The recommended time frame for
this method is 5 to 15 minutes. This method is suitable for those who rarely trade at night since
you will not have to worry about being affected by big moves overnight.
Pros
 No overnight risk

 Reduced opportunity cost
Cons
 Most of your daytime will be used up
 A lot of technical analysis is required.
Scalping strategy involves concise term trade held for a few minutes. This method is aimed at
making small profits at regular intervals, which is achieved by opening and closing multiple
trade positions in a day. This method, however, is not suitable for the retail trader because it
entails a lot of transaction fees, which will end up eating up your profits. So if you are a beginner
and you have limited funds, refrain from using this method.
Pros
 You can make a healthy income
 Has most trading opportunities compared to all other strategies
Cons
 You will have to spend a lot of time on your screen I a day
 The endeavor is highly stressful.
Position trading. This is a long term method where traders hold trades for weeks or even months.
You primarily rely on fundamental analysis, but you can use technical analysis as a tertiary
option. This method does not allow you to open and close multiple trading positions since it is a
long term engagement.
Pros
 Less time investment
 Favorable risk reward
 Less stressful since you will not be trading regularly
Cons
 Requires you to have a lot of knowledge on the fundamentals driving the market
 Few trading opportunities
 Substantial capital investment is required
Choosing the best strategy is fundamental if you want to have a successful trading endeavor. A
person can use an approach, and it proves to be helpful but end up messing up another person. It

would be best if you familiarized yourself with all the strategies so that you can weight them all
ad choose the best for you.

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