Everywhere peoples are following different working strategies because successful strategies make your tasks easier. Forex trading is a very risky and hard way to earn money when you start trading.
Professional forex traders make trading strategies for traders to trade easily to earn more profits from their trades. To trade for a long time, you have to follow a trading strategy; otherwise, you cannot trade for a long time.
There are three types of strategies that are following by professional traders 1.) Scalping trading, 2.) Day trading and 3.) Position trading. But scalping and day trading is the most popular in the market.
1.) Scalping Trading
Almost 50% of forex traders follow scalping trading strategies while trading because this is the quickest way to earn some profits from trading. Scalping trading is very popular with traders because of its liquidity and volatility. We have seen that maximum time traders are targeting for 5 pips profit while scalping. To get the best result of scalping trading, traders need to invest a few big amounts of capital. If a trader trade with a higher amount of deposit money and get high leverage in trading, he/she can earn money quickly with a small move. That’s why professionals are suggesting newbies trade with these trading strategies.
2.) Day trading
Day trading strategy also very popular in the market. When a trader opens a trade on a trading day and closing the trade before ending the day, that is day trading. Scalping also a part of day trading, but there are some different things between them. Scalping is a speedy trading strategy. On the other hand, day trading is targeting big profits within a trading day.
3.) Position trading
This is the longest trading strategy in forex trading, this is completely different from scalping and day trading, and this strategy is following by pro traders. Most of the time, traders are targeting the fundamental factors while trading with this strategy. There are many minor fluctuations available in the forex market, and day trading is perfect for these types of situations. Still, when you trade-in position trading strategies, you have to avoid it. In this strategy, traders monitor the central bank and significant political movements with the fundamental factors to determine the actual trends over a certain period.