Forex Strategies that Actually Work

5 Forex Strategies that Actually Work

Let’s be honest, most inexperienced investors have no real gameplan or strategy when it comes to forex markets. It’s true, some traders use common sense and stick to trading the little they know but for the most part, forex strategies are little more than non existent. It’s no wonder they get crushed anytime the markets make a strong move in either direction!

But what does this mean for you?

Well, if you’re like me, you are always open to new ideas around forex markets. That being said, you also want to know that these forex strategies are tried and trusted methods that experienced traders use in the same markets.

Let’s take a look at five popular forex strategies that actually work:

forex strategies that actually work

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5 Popular Forex Trading Strategies That Actually Work (even for beginners)

1. The Trend Reversal

After every strong or persistent move in one direction, there is always a trend reversal. As you might expect the objective in this strategy is to make an entry as soon as the reversal is confirmed. At this point, you have reduced your risk and entered the market at a time when the probability is on your side.

When done right this is one of the least risky forex strategies that actually work.

Every forex trader needs a reliable and robust trading platform. The Metatrader 5 from Phillip Futures is an ideal choice. MT5 offers forex traders the ability to perform technical analysis and conduct automated trades through the use of a mechanical trading system known as an Expert Advisor (EA). It also allows you to conduct backtesting of your trading strategy before you commit your funds.

Source: ZUU Online

2. Trading with Momentum

Technical analysis is essential for reading the charts in any given market but no real skill is necessary to recognize momentum. What’s more, the concept of momentum is something that anyone can understand and a key tenet that can be used as part of a forex strategy.

Simply put, when rates are moving upward, you need to buy and when the charts decline, you sell.

With this in mind, the only real “skill” is to identify trends within the market. You can do this by tracking prices over the course of a month and identifying currency pairs that seem to be making strong moves. Having taken this data into account, you can start trading these pairs.

Learning to trade a new forex strategy can be hard. So use the software versions of the best forex strategies above to carve out the learning curve and increase your pips. Expert advisors let you start trading these forex strategies in minutes. And that’s exactly what you need to improve your forex trading tonight.

Source: ForexRobotTrader

3. Buying the Breakout

As you know, when you have significant money in the market or a number of open trades, there is more risk involved. Playing the breakout is one way to minimize this risk and play it safe. Now, this all comes down to timing but essentially, you need to catch the beginning of a sudden price surge and make an entry as early as possible. Needless to say, you will also need to time when you sell but ideally, the price surge will give you a nice cushion if the price comes back down unexpectedly.

It is true that a strategy may be perfect for one person and a catastrophe for another, but there are some that have been long standing and doing well for a greater number of people than the other way round.

Source: LiteForex

4. Quality-Focused Trades

Needless to say, not everyone can afford to sit around and study hourly time frames on a daily basis. For this reason, you should know that the same opportunities exist on every time frame, from 15-minute charts to that of hourly and weekly etc. With this in mind, choosing to focus on quality instead of the actual charts is one of the forex strategies that actually works, yet is often neglected.

Moral of the story: Choose quality trades regardless of what time frame you study.

The best forex trading strategies for beginners are the simple, well-established strategies that have worked for a huge list of successful forex traders already. Through trial and error you should be able to learn Forex trading strategies that best suit your own style.

Sourc: Admiralmarkets

5. Long Term Position Trading

This is arguably the most suitable of all forex strategies for beginners. As the title suggests, it involves gaining some understanding of the fundamentals in the market and identifying what you believe to be a low entry point. Having done some research on historical data/charts, you should also be able to estimate what the price could rise to over the long term. Indeed, long term position trading requires patience but it usually pays off.

The truth is, forex trading is not only lucrative but also one of the more reliable performers on an investment portfolio. With the above forex strategies that actually work, you should be some way closer to making moves in the market that actually make you money!

The wealthy traders of the world base their decisions on the daily time frame and higher for a reason – because it works. It gives them the best chance of extracting a profit from the market over an extended period.

Source: Dailypriceaction

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