Best Forex Trading Strategies That Work In 2018

Forex trading can be quite difficult and chaotic if a strategy is not followed, especially, for new traders. For this reason, this informational article provides the best Forex trading strategies for novice traders to use. Experienced traders can use them as well if they do not already have a trading strategy that they prefer to stick to. As always, traders should practice their strategies on a demo account or start with placing small trades before they proceed to a real money account or to large trades. Moreover, by practicing traders can enhance their skills and feel more confident when placing trades so that they remain calm and thus, be in control of their trading.  Below are presented some of the most popular forex trading strategies. Traders should try them all out and stick to the one that they feel is better for them.

Diversification Strategy

The first Forex trading strategy presented in this article is known as the diversification strategy which is based on the overall condition of the market as well as the present price for a given asset. By applying this strategy, traders can benefit and thus, benefit from the investment by winning. It should be noted that every strategy cannot work 100%. It goes without saying that it is possible for traders to lose. For this reason, traders shouldn’t invest all their capital in a single trade or asset since this is considered as a risky move. Traders should aim to have the funds necessary for at least ten trades. This is a reasonable attitude, known as funds diversification, that any trader should have when trading.

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Five Minutes Strategy

The second trading strategy presented is called five minutes strategy. It is a pretty straightforward strategy that requires a small capital and very little experience. Thus, it is quite useful for beginners. As with all Forex trading strategies, it does not work 100%. Traders should expect to lose some as well. To apply this strategy, traders need to search around the market and find a stable asset that is steadily going up or down. Traders should remember to track the asset’s top value which might be a turning point for the trend this time.

Martingale

The following Forex trading strategy is quite known for some time now. Known as Martingale is the strategy that requires the trader to double up the trade every time a loss occurs. For instance, going from $10 to $20 and then to $40 and $80. As it is obvious, this strategy can be quite risky and the trader might end up losing a large sum at the end if the trader runs out of funds before a win occurs. In addition, traders who cannot keep their cool in such instances might be better off with a different trading strategy that is not so risky and nerve-wracking. In order to benefit from this trading strategy, it is advisable that traders track an asset that has a clear up or down movement. By doing so, the risk of losing can be minimized and hence, traders can stay focused on placing profitable trades.

15 Minutes Strategy

The following strategy is called the fifteen minutes strategy and requires the trader to track an asset for fifteen consecutive minutes. This is a straightforward and quite simple strategy that beginners can use as well. As can be seen from the screenshot below, a trader needs to wait for three or more consecutive candles of the same color and then wait for a rollback before placing a trade. As with all trading strategies this can be no exception. There is no guarantee that the strategy will work 100% so, traders should always be ready to lose. In addition, they should keep in mind that they shouldn’t invest all their funds in a single trade or asset as already explained in this article.

 

Triangle

The last strategy presented on this informational article is known as triangle. Triangles can identify the forthcoming increase or decrease in price. As a result, traders should follow the forecast of the triangle depending on its shape. For instance, if it is a decreasing triangle or an increasing triangle as shown on the screenshot below.

In order to understand what kind of a triangle is formed the trader needs to follow the example shown above in the screenshot to form the appropriate triangle and thus, draw the appropriate conclusions for their trading.

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