A Forex strategy is essential if you want to be successful. The majority of investors lose money with Forex. It’s all about a well thought out strategy, which can be easily incorporated into your trading habits.
It’s very important that you learn to correctly use a Forex strategy. Below I will outline what I consider to be the best Forex strategy for anyone wanting to start out on the Forex markets.
Start trading EUR/USD. This is the easiest currency pair to trade, as the open and close are close to the same for each week.
Forex strategy #2 is to trade both pairs; EUR/USD/JPY. The strength of each currency will help determine the price movements in the other currency.
Forex strategy #3 is to invest in the long position. It’s extremely easy to make profits by trading the long position when there is plenty of liquidity.
Forex strategy #4 is to trade the short position, but only during the times when there is plenty of liquidity in the currency pairs. There is no way you will profit from a currency pair that is selling at the wrong time.
Forex strategy #5 is to buy a trade early and sell it late. If you invest, say, a billion dollars, you may want to sell, say, five million dollars at the right time so that you can earn ten percent of your investment.
Forex strategy #6 is to short a trade. It’s easy to short a market.
Forex strategy #7 is to invest a lot of money in the currency pairs that are a lot stronger than others. For example, there is no reason to invest a lot of money in the currency pairs that are less than $200 dollars.
Forex strategy #8 is to avoid trading the foreign exchange. Although the Forex market is less risky than most markets, the currency pairs tend to fluctuate more.