Forex market might be the largest financial market in the world but the number of successful traders is very low. Based on statistics, we can say only 3-4% of the investors are securing a decent ROI. Managing the trades and making some serious changes to your trading method is a very risky task. Unless you learn to trade the market with discipline, it will be tough to make a profit with low risk. Thousands of trading strategies are available in the market and it is very hard to tell which one is the best for your mentality.
Using the successful traders’ approaches, we are going to simplify the trading methods for new traders in Hong Kong. Learn more about the different types of approaches and determine the best-suited trading style for your business.
Scalping
Scalping is trading the lower time frame for a quick profit. To become a professional scalper, you must have strong analytical knowledge. Most importantly, you should have the skills to determine the risk exposure in each trade with a high level of accuracy. Unless you have a very strong basic knowledge, you should never try to become a scalper. Those who are trading the market for more than 3 years can begin trying different scalping methods. But it should be done in the demo environment since you need to make a lot of adjustments to the scalping system before you can make some profit.
Day trading
Day trading is one of the most popular Forex trading strategies in the world. By learning to day trade the market, you can secure some consistent profit without risking too much. The professional day traders are very good at managing the risk. Usually, they trade the hourly time frame and book the profit within the same day. You must choose a good broker like Saxo or else it will be really hard to make a profit as a professional day trader. Being a day trader, the maximum money you lose per day should never exceed 1% of your account balance. If you can follow this rule, you can expect to make a profit most of the time.
Position trading method
The position trading method is the safest method in the Forex market. The rookies should start learning the position trading method as it will solve many problems. Being a position trader, you won’t be over trading the market. Most importantly, you will be looking for high-quality trades since the frequency of the trades is not a crucial factor. Before you learn about the position trading method, make sure you have a strong mindset. Unless you can wait for a good trade for a few days or a week, the position trading method is not suitable for you. Once you become good at position trading, you can see the change in your trading performance. Use the demo account to learn the details of this trading strategy and you will feel more confident as a currency trader.
Chart pattern trading strategy
Many people want to secure big profits by trading major news. News trading is a very complicated task and it requires strong fundamental analysis skills. But if you learn chart pattern trading, you can secure a big profit without the help of the news. So, is there any way we can learn the chart pattern trading method? To learn the details of the chart pattern trading strategy, we need to focus on the continuation chart pattern first.
Once you master the continuation chart pattern trading technique, you can switch to the reversal chart pattern trading method. Based on these two forms of the chart pattern, it is possible to secure more than 200 pips in the market. However, you must practice in the demo account for at least six months before you can really make some progress with this trading method.