Regardless of what you are pursuing or what your end goal is, having a clear and well-thought-out strategy will improve your chances of getting the desired results. This is also the case when it comes to forex trading with US Dollars, or any of the other popular and most-traded currencies on the market. Although there is no guarantee of success in the forex market, creating a strategy based on thorough research and historic data is advised by many. An analysis and understanding of the lay of the land, coupled with effective implementation, is considered a good starting point for anyone who is looking to start exploring the world of trading, and even those who are already experienced in the field.
Understanding that each person that pursues forex trading is different and has a different goal, the chosen strategy will also differ to suit each person’s personality and end goal. For example, the strategy chosen by someone who is exploring trading as an immediate source of income will differ from that of someone who views it as a long-term investment. Additionally, one’s risk tolerance and capital resources will also influence one’s chosen strategy.

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Proven Forex Trading Strategies
It is often said that if you fail to plan, you plan to fail, which is why having an effective forex trading strategy is essential. Some of the most popular forex trading strategies are:
Day Trading
This strategy is popular amongst people that have committed to forex trading on a full-time basis. Day traders are people that look to capitalize on market fluctuations that happen throughout the course of the day, as they do not hold any positions overnight. Due to this, day trading is perceived as somewhat less risky by some, because any unfavorable conditions that occur overnight will not have an impact on the position/s held by the trader.
Trend Trading
Industry insiders regard this as one of the simplest forex strategies to adopt, as it merely requires one to trade in the direction of the current price trend. It is advised that those who opt for this strategy keep a keen eye on the direction of the trend, its duration, as well as its strength. This strategy doesn’t necessarily require much predictive action or a forward-looking approach to the forex market, as it is mainly focused on what is happening at that particular point in time.
Position Trading
This strategy is ideal for those that have a long-term interest in forex trading, as it requires holding a position for an extended period of time. In this case, it is essential to be able to identify lucrative points of entry and exit in order to best capitalise on market activity.
News Trading
As the name suggests, this strategy requires being cognizant of global politics and economics, because those are some of the key factors that influence currencies and financial markets. Understanding how each of these elements impacts forex and currencies will better guide your trading decisions.
Swing Trading
This strategy is aimed at capitalizing on short-term surges in price momentum, which would require the trader to examine market conditions more frequently. As opposed to analyzing overall market trends and data, a swing trader is more concerned with the hourly, daily, or weekly market outlook.
Scalping
This strategy is based on an ongoing analysis of price movement, and because it is more focused on the spread, it also requires a trader to have a good relationship with market makers who determine bids and ask prices for currencies.



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