Most of ordinary people and new investors have a very little idea of who is Forex Guru? Whether it’s a fakir conjuring benefits from your trading soar to the heavens or a high-caliber trader ready to support and share his or her experience with you? Of…
Find out which Forex trading strategy best matches your personality.
Many fresh investors turn to Forex market in hopes of making a quick fortune. Unluckily, the prevailing majority of these individuals fail to turn a significant profit. This is due to the fact that to succeed in Forex market, you need to have a clear trading strategy the best matches your personality and your trading goals.
Forex traders apply wide range of strategies and techniques to determine the best entry and exit points—and timing—to buy and sell currencies. Market analysts and traders are constantly innovating and improving upon strategies to devise new analytical methods for understanding currency market movements. Below are described three major types of traders and strategies based on the most resounding and stunning success examples.
Trend trading (or trend following) is an outstanding way to profit from large moves in the markets without spending a lot of time in front of the computer. Trend traders identify trends and find low risk entry points from which they hold their position until the trend reverses. This style works in most asset classes and can be highly profitable given sufficient diversification, strong risk control and the discipline to stick to the system.
Big trades in foreign exchange normally remain unknown because the market is too big to spot individual traders. Also, it is highly unlikely that a single trader can influence entire economies. However, George Soros is an exception. He is called the most successful trader in history and "The Man Who Broke the Bank of England". Earned $1 billion trading GBPDEM currency pair.
His main strategy is to spot upcoming economical vulnerability of a country and then go short on its currency right before the fall happens. The highest potential for currency fluctuations —and consequently, gains— is when a currency has a fixed rate tied to another currency.
Almost all kinds of trading activity revolve around technical analysis because of its diversity and different approaches to analyze demand and supply in the stock market. As long as you know how to apply it, you can be a day trader, swing trader or positional trader. The underlying knowledge required is similar. However, it may not be fully relevant in the following trading styles and the concept of analyzing opportunities is completely different. Almost all traders including institutional ones, banks etc. use technical analysis skills to gauge market and to foretell the future prospective of the stock market.
Larry R. Williams is renowned stock and commodity trader born in 1942 in USA. In the Forex trading world, his name is taken for the large number of market indicators he has created, including the Ultimate Oscillator, the Williams %R indicator, market sentiment, COT indices, cycle forecasts and others.
In 1987, Larry R. Williams won the World Cup Championship of Futures Trading, managing to make $1,100,000 with a starting investment of just $10,000. This incredible success was achieved in 12 months and was based primarily on Larry’s groundbreaking futures trading methods. He later published a book about this experience called “How I Made One Million Dollars Last Year Trading Commodities”.
Day traders buy and sell stocks throughout the day in the hope that the price of the stocks will fluctuate in value during the day, allowing them to earn quick profits. A day trader will hold a stock anywhere from a few seconds to a few hours, but will always square off all of those stocks before the close of each day. The day trader does not own any positions at the close of any day therefore immune to overnight risks. The objective of day trading is to quickly get in and out of any particular stock for a profit on an intra-day basis.
Probably the best example of day trader is a USA-based self-made millionaire, Timothy Sykes. He is one of the leading figures in the world of penny stock trading. Not only has he earned a great deal of money by trading these sub-$5 shares for but he also has devoted himself to teaching others how to find success on profit, Wall Street as well.
While $12,000 may seem like a great deal of money for most high schoolers, Timothy Sykes saw it only as an opportunity for future profits. He began day trading penny stocks while in high school, using this Bar Mitzvah money. Incredibly, he ended up making over $1.6 million by age 21. This was the start of his lucrative career, and is undoubtedly one of the most impressive feats of his life.
So be inspired by these examples of incredible success and take a short test to determine which trading strategy will lead you to achieve your main trading goals and let you turn a significant profit.
Here we gathered the most interesting of common myths about trading on Forex.
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