The concept delivers more flexibility in terms of timing though it calls for deeper analytics, examination, and research. Once you are ready to enter the real financial market, open the LIVE account , and start your successful trading. This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks. What Medium-Trading Is and How It Works The term speaks for itself. How It Works The concept is pretty simple. In this image you can see where Support and Resistance levels are. Moreover, here are some other Forex indicators that you might need: Support and Resistance Levels; Trend Lines; Fibonacci Retracement and Extensions; Pivot Points and Candlesticks.

Medium Term Trading Pros and Cons As we have stated earlier, this particular strategy does not guarantee profits. And if you are able to master them, you will benefit from: Flexibility — the strategy suits a wider range of traders. Predictability — asset trends from the portfolio can determine further performance. Stress-Free — medium-term strategies usually come with reduced stress if compared to scalping, for instance.

As for the most popular strategy cons, they are as follows: In-Depth Analysis required. You will have to use more instruments than with short-term trading. Macro and Microeconomics Impact to consider. Medium-Trading Strategy Tips If you decide to stick to the medium-term concept, you are supposed to hold positions from one day to several weeks.

Step 1 — Collect the Data It all starts with gathering as much information about the trend as you can. The stage can be divided into three main phases: Performance Info - Let's say you trade stocks. So, be prepared to learn as much about the company as possible. Examine everything you can from revenue and sales reports to debts, the company's own predictions, and plans for the future.

Historical Movements - Look for prior company's prior reports, dividends, etc. Compare those figures with earlier reports to observe the trend movement. Prediction - Consider the company's news and predictions.

Find out what the expectations for the future are. What are the market risks? The idea is to make yourself feel confident about the asset. Step 2 — Tie the Collected Data Together Now you need to put all facts together.

Step 3 — Build a Roadmap This is where you can make the most of historical price charts. Step 4 — Consider Various Scenarios The next stage is to observe the roadmap and try to predict various scenarios. To understand, how the trend can move in the future, ask yourself: What is the possible outcome if not considering news or events? What expectations are priced into the outcome of the asset?

Scalping traders need ultra-quick interaction with price movements as they usually enter and exit trades in maybe just seconds or minutes. This very fast-paced, and stressful, trading style may not suit everyone. Scalpers closely monitor price charts for patterns that can help them predict future exchange rate movements so they usually choose brokers with tight spreads, quick order executions, and minimal or zero-order slippage.

When trading forex for the short term, it is better to mix technical analysis with fundamental analysis. Use technical analysis to identify entry and exit levels, evaluate price movements and detect price patterns. Meanwhile, fundamental analysis will help you consider economic factors that may affect your trade like data releases or interest rate decisions. Trend Trading: It is a simple strategy as you buy when prices are rising and sell when prices fall.

It involves checking longer-term charts to identify the trend. Once the overall trend is identified, trends in shorter time frames shall be moving in the same direction. Learn more on forex trend analysis.

Support and Resistance: Trading breakouts are very common. Support and resistance mark the levels or zones where you can enter or exit a trade. The price either reverses from these levels or breaches and continues the current trend. Support and resistance levels are not always exactly as they can be in an area or price range. They help identify possible areas where prices may change directions. Candlestick Patterns: They are price patterns that are formed over time and are believed to have a repetitive nature.

It means that candlestick patterns are repeated every while and reflect the emotional reaction of the traders to the prices. They are used to recognize a trend continuity or reversal by reflecting the buying and selling forces. There are plenty of online resources to learn the basics of forex analysis. However, attending online courses and getting in touch with professional traders can help speed up the process.

This will help you avoid common mistakes usually made by beginners. Read the detailed guide on how to learn forex trading. The best way to learn forex analysis is to understand the key principles and apply that knowledge to demo trading.

Another method to learn is imitating professional traders until you get sufficient to trade on your own. This trading technique aims to follow professional traders who have a track record you would like to emulate. It is a way to automate your trading strategy. You must know each broker's policies and how they go about making a market.

For example, trading in the over-the-counter market or spot market is different from trading the exchange-driven markets. Also, make sure your broker's trading platform is suitable for the analysis you want to do. For example, if you like to trade off Fibonacci numbers , be sure the broker's platform can draw Fibonacci lines.

A good broker with a poor platform, or a good platform with a poor broker, can be a problem. Make sure you get the best of both. Before you enter any market as a trader, you need to know how you will make decisions to execute your trades. You must understand what information you will need to make the appropriate decision on entering or exiting a trade. Some traders choose to monitor the economy's underlying fundamentals and charts to determine the best time to execute the trade. Others use only technical analysis.

Whichever methodology you choose, be consistent and be sure your methodology is adaptive. Your system should keep up with the changing dynamics of a market. Many traders get confused by conflicting information that occurs when looking at charts in different timeframes. What shows up as a buying opportunity on a weekly chart could show up as a sell signal on an intraday chart.

Therefore, if you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize the two. In other words, if the weekly chart is giving you a buy signal, wait until the daily chart also confirms a buy signal. Keep your timing in sync. Expectancy is the formula you use to determine how reliable your system is.

You should go back in time and measure all your trades that were winners versus losers, then determine how profitable your winning trades were versus how much your losing trades lost.

Take a look at your last ten trades. If you haven't made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade. Determine if you would have made a profit or a loss. Write these results down. Although there are a few ways to calculate the percentage profit earned to gauge a successful trading plan, there is no guarantee that you'll earn that amount each day you trade since market conditions can change. However, here's an example of how to calculate expectancy:.

Before trading, it's important to determine the level of risk that you're comfortable taking on each trade and how much can realistically be earned. A risk-reward ratio helps traders identify whether they have a chance to earn a profit over the long term. Risk can be mitigated through stop-loss orders , which exit the position at a specific exchange rate.

Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses. One loss could wipe out two winning trades. If the trader experienced a series of losses due to being stopped out from adverse market moves, a far higher and unrealistic winning percentage would be needed to make up for the losses.

Although it's important to have a winning trading strategy on a percentage basis, managing risk and the potential losses are also critical so that they don't wipe out your brokerage account. Once you have funded your account, the most important thing to remember is your money is at risk. Therefore, your money should not be needed for regular living expenses.

Think of your trading money like vacation money. Once the vacation is over, your money is spent. Have the same attitude toward trading.

One of the two approaches to trading Forex is fundamental analysis. It relies heavily on measuring the performance of the economies of currencies.

And one way to go about this is through the news. Technical analysis is another way of trading Forex, but we've covered this topic and the differences between the fundamental and technical analysis in another article.

Today, we're focusing on news trading strategies in Forex. But before you proceed, read our tips for trading on the news. The classic news-based trading strategy involves an expert knowledge of the released economic data, and how it affects the market. You have to understand the effect the news may have on the market when the forecasted value of the news report differs from the actual value by little or much.

When the Non-Farm Payroll NFP was released on the 8th of January, , for instance, the actual value fell short of the forecasted value by a lot. The economists forecasted an increase of the figures by 60 thousand. Instead, the actual figure was a decrease of thousand. The NFP is an economic data that represents the employment figures in the USA. As you might imagine, a fall in this figure is bad for the US economy because it means more people are unemployed.

This increased level of unemployment could dip the economy in many ways. One of them is that fewer people would pay taxes, and less income goes into the US Federal Reserve.

So when the news was released, the USD weakened across many major currency pairs. If the actual value was close to the forecasted value, the market might have been able to absorb the little gap and move on as if nothing happened. Maybe a brief spike in volatility would be recorded across USD currency pairs.

But the large difference meant things were worse than expected, so traders sold the USD. The effect is evident on the EURUSD chart above.

This might be the strategy for you if you know nothing about interpreting the news but hope to profit from trading it. The breakout forex news trading strategy allows you to prepare for a breakout in either direction without worrying about what the news says. Here is how you do it. A possible outcome is that the price goes in one direction, triggers one of your orders, and reverses to trigger your second order.

That is why you need to set stop losses to protect your account. This scenario is what we have up there on the chart where price made a false breakout to the downside before reversing direction. This strategy is like the straddle news trading strategy. Both have no care for what direction the news would drive the market. You only look to profit from the pair, irrespective of what the news says. Instead, you open instant buy and sell positions on the currency pair where you expect to profit from the news.

There is no strategy in forex that wins all the time. That is why you have to be good at risk management, especially when you are dealing with the sudden spikes in volatility that forex news trading involves. Finally, you can use the FXSSI calendar indicator to keep track of important news releases right there on your MT4 charts. December 28, Top 3 News Trading Strategies Trading Tips 2. Related Articles. What's Next? Learn basic Sentiment Strategy Setups.

AximTrade is a fast-growing brokerage service provider in the global markets with a highly advanced MT4 execution and Copytrade platform. Remember, these strategies are not infallible—none of them is. On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. For Metatrader 4, there are lots of Gann related indicators available for free. Try to place your take profit and stop loss before entering the trade as you can always change that, if something important happens in the markets in the meantime. After the 7am GMT candlestick closes, traders place two positions or two opposite pending orders.

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