Whenever you begin trading you are overwhelmed by the choice of forex-strategies you might be presented with. There is no way you may trade multiple foreign exchange strategies at one time and you must make the decision of which one to trade.

There are a number of factors to think about when selecting your forex-strategies. Firstly you have to choose your timeframe and holding period. How long are you going to stay in the trade? It’s important to decide if you will trade intraday or hold trades overnight and are more of a swing or position trader.

Intraday foreign exchange strategies are extremely popular and with such a forex technique you are taking between 10 and 50 pips per trade and your risk profile are similar. If you happen to trade an intraday forex technique you additionally normally trade between 1 and 10 times per day.

Swing or position traders sometimes trade a lot less and wait for a larger move within the forex market to take advantage of. They stay in the trade for 1 to five days and look to take one hundred+ pips on a trade. The stop loss on these trades is also much bigger and thus you need to have the account size to accommodate this larger stop loss

Typically it’s easier to swing trade than to intraday trade, and the irony is that most people are drawn to day trading because they believe it’s easier to generate profits when you trade short term. That is also one of the causes greater than ninety% of all traders fail – the bulk attempt to trade short term.

A well-known trading writer once said that day trading is like flying a fighter jet at very low altitude, one mistake and you crash and burn.

In the case of forex-strategies – it’s the case of discovering the one foreign exchange strategy which you are comfortable and profitable with


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