Trading Techniques and Strategies

As one of the largest financial markets in the world, a daily turnover of the Forex market is nearly 4 trillion USD.
By: InfinMarkets Ltd
 
Jan. 16, 2013 - PRLog -- Currently numerous trading techniques are available via the Internet and other sources to help traders of all levels take the advantage of this vast amount of liquidity and regularly changing market. Note that many of these techniques are quite complicated and can be quite overwhelming for beginners in Forex area.

         Scaling is one of the most popular trading techniques. The strategy is to close the position soon after it has come into the profit. This means that after taking the position and coming into profit, generally 5-10 pips, profit is taken right away and closes the position. This lowers the chances of losing profits, due to retracements in the price of the currency pair.

         Position trading is based on the aggregated exposure. The position of a trader is generally the average price of the currency pair. In case a trader takes a long position for the EUR/USD at 1.25., and in case the pair is identifiable trending higher, but happens to retrace lower and the trader takes another position at 1.23, the average position of the trader would be 1.24. As soon as the EURUSD moves back up above 1.24 the trader will be back in a total profit.

         Momentum trading is also one of the well-known trading techniques. This kind of trading technique is mainly used to trade during news releases or confirmed trends, which are further supported by large volumes. For instance, traders may expect positive news to be released regarding country’s economy, following the release being positive, the trader will buy the currency pair, after which the trader will ride out the trend into a positive direction. When the trend starts to reverse, traders close their position.

         In general, there are several trading techniques, which can be employed to help you have a better opportunity for taking on profitable trades. If you wish to try such techniques, but you are not still ready to risk real money, you should download a demo account from Infin Markets and try yourself before using real live account. If you would like to learn more about how to make trading more successful, you can read about Forex market analysis. In addition, if you require additional information on the strategies mentioned above, feel free to contact Infin Markets’ support, our highly motivated staff will be happy to assist you with any question.

Related Article:

http://www.infinmarkets.com/en/trading-technique
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Source:InfinMarkets Ltd
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Zip:3085
Tags:Trading Techniques, Forex Trading Techniques, Trading Strategies
Industry:Investment
Location:Cyprus - Cyprus
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