Is there any such strategy that will guarantee you profits in trading? The trick to choosing the right Forex trading strategy is to get an in-depth knowledge of how trading works so that you can minimize the risks. When you trade without a plan or strategy in place, you will make mistakes and face high risks. The market is unpredictable and making mistakes is common. The trading strategy you opt for will guide you on what to do when market conditions change. So, you need a trading strategy that can work for all types of situations. A smart trader will not resort to guesswork when it comes to entering or exiting trades.
A trading strategy is typically based on different tools and the more popular strategies are based on technical indicators, moving averages, Bollinger bands, technical analysis, candlestick charts, trend trading, flat trading, scalping etc. Besides, bitcoin trading has gained popularity due to its automated trading platforms. Read through the bitcoin revolution bewertung to know the potency of the trading software.
- Perhaps one of the most popular and profitable trading strategy is the scalping or Bali strategy. This is a scalping trade strategy designed for shorter time-periods. This strategy works well in day trading and indicated short stop loss and take profits. The prime indicator used is Linear Weighted Moving Average. Since the LWMA focuses on the latest price movements there will not be any delay in long-term timeframes. This strategy will consider the only the MA positions relative to price moves. When LWMA is below, it indicates a buy signal; if it above prices, it indicates a sell signal.
- Candlestick strategy is a profitable trading strategy usable on various currency pairs and based on price movements. You have to calculate the size of candles of various currency pairs and select the longest distance between the opening and closing of candle in a week. That pair will open a deal next week. When the candle is bearish, the position is long; if bullish, the position is short.
- Parabolic profit is based upon MA or moving average. Here, you must set 3 MA in the chart and parabolic indicator. To open buy deals, you must make sure that parabolic is right at the bottom. When parabolic is at the top, the position is short.
A profitable trading strategy can be defined depending on these factors:
- Minimum numbers of lagging indicators. The better will be the forecast accuracy when the numbers are less.
- The strategy should be customized to suit your trade style, your situations, etc.
- You must be able to understand the trading strategy you are following.
- Trade with Bitcoin Pro if you have plans of getting into autonomous trading.
To be able to trade successfully in the market you have to build your own trade strategy. This requires becoming familiar with whatever is new, evaluate the readymade trade schemes, and upgrade your action plan. You will come across many innovative automated trade systems that are run on artificial intelligence and they can have a success potential of more than 300%. However, such indicators are hardly true and even the most experienced traders will not make more than 20% every month. To trade well you need to have an interest in the activity; you cannot take any strategy for granted or try to follow recipes that promise overnight success as these will invariably lead to losses.