Forex trading strategies.1. High Frequency Trading – The trader must be aware of when a currency will be stable or when a currency will be breached. When a currency will be stable the trader can trade it instantly.
When a currency will be breached the trader will have to wait for the normal market time before the trade can be executed. This is not an ideal situation to have especially when a currency is trading high.
HFT is ideal for finding high priced/low discounted trades.2.
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Momentum Trading – The trader must be aware of the market speed with which prices move. This is important when a currency is fluctuating. Wherever there is a trade that can be completed in a few seconds, a quick trade is executed. This is where the money makes its appearance especially for the HFT who needs to be patient.
Momentum trading is not for the weak at heart, or for the impatient. Those who engage in this trading strategy lose a lot of money. However, they gain a lot of knowledge and experience.3.
Technical Trading – The trader must be capable of processing a lot of information in rapid succession.
This is a great skill to have in Forex.
Every trader type should be capable of trading this type.
The trader must be flexible in order to take advantage of this type of trading. The trader must have a good method to evaluate the market. This skill determines a trader’s success rate.A good method to determine the market’s momentum or volatility is by utilizing a technical analysis. One of the most comprehensive and well-respected technical analysis programs is the Dow Jones Industrial Average.
Dow Jones Industrial Average is the market’s average of the major currency pairs. The Dow Jones Industrial Average is a composite of the EUR/USD, the USD/JPY, the USD/CAD, and the NZD/USD. The Dow Jones Industrial Average excludes currency fluctuations.The Euro is the standard currency of the European Union.
The EUR is recognized as a form of reserve currency. The currency of the European Union is also known as the Euro.The EUR is valued on an exchange as fixed by law.
It is possible to acquire a number of contracts that specify a specific time and place. These contracts may all be conveniently arranged in advance. The EUR is traded in pairs.
The contracts may also specify other currencies. These contracts may be readily converted into dollars. Julian Hitzig, an American trader, introduced the world to the world-famous DJIA ( Diamond-Nikkei Index ). The DJIA is a measure of index funds that tracks a particular index.
The DJIA was originally developed as an index of industrials, but has since been specifically designed for the investor seeking to track the performance of individual companies.The DJIA is a volatile index that tracks the Nikkei. Average daily prices in the DJIA have been increasing since the index was first created in 1980. Peak activity occurs near the end of each month.
Average high above the day below is called the Bollinger band.