What are safe and profitable trading strategies? What kind of strategy do professional traders have in forex trading?
This question isn't the first thing that often comes to a trader's mind, especially for beginner traders who are just starting out in the world of Forex trading or binary options, and so on. Before you trade Forex, of course, you must get to know the base and understand the forex trading strategy starting from the simple first. Although in reality, not all Forex trading strategies are great and can work well every time we make a transaction.
However, you can become a professional Forex trader. For that, we must have a trading plan that is at least supported by a trading strategy that has been tested before, to become a professional trader. However, this requires discipline and consistency to carry out the trading plans and strategies that you have planned well beforehand.
We need to remember, even though the results of discipline and consistency that we have used earlier will not continue to provide benefits every time we make a transaction, this does not mean that we will forever fail in Forex trading. So, having a strong trading strategy to avoid trading losses and risks that will arise when trading is very important.
So, what are the Forex trading strategies for profit?
1. Strong data based on fundamentals
Is this strategy important for us to use in Forex trading?
Of course, strong data based on this fundamental is very important!
The reason is that this strategy takes advantage of the response from the market when economic data is released. This method is a very simple technique. Because we, as traders, only need to find big news that affects the world forex market to then make sell/buy decisions.
The market will move more volatile if the number of certain economic data announced is better or worse than forecast.
2. Round numbers
What is a round number in Forex trading?
In Forex trading, round numbers are often referred to as psychological levels which are key levels. Where these round numbers often act as support and resistance levels.
Usually, traders often use these numbers as entry levels, exit levels, or stop levels. These stops and limits can change order flow and price changes.
Example of round numbers or price levels in Forex trading
- 0.50000
- 1.0000
- 1.50000
- 100.000.
Examples of considered non-round numbers in Forex trading
- 1.38775
- 139.387
- 1.58837
Example of using round numbers in a Forex trading strategy
The following is one example of how to use round numbers in a Forex trading strategy: If you see that the asset price is moving above the area of the psychological level, then the level can be the key to support. In such a position, you can get the opportunity to open a long position with a reference to stopping losses in that area of the psychological level.
If the price breaks below the level, you can get the opportunity to open a short position.
3. Use a combination of technical indicators
This trading system is often used by professional traders. Some of the purposes of using a combination of indicators are to cover up the weaknesses of other indicators. So in this case the signal produced will be more confirmed.
In addition, we can also use a combination of Forex trading signal applications and indicators.
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