​Three Forex Trading Tactics with Highest Efficiency!

As for traders, choosing trading tactics suitable for themselves can halve their work but double their profits. The most effective tactics are introduced herein for your reference.

Position trading

As a long-term tactic, it is extremely reliant on the fundamental analysis whereas the timing of entries can also be determined based on technical analysis. The advantages and disadvantages of position trading are listed as following:

Pros:

1. There is no need to follow the trading charts constantly.

2. Dont have to pay attention to price movements in the short run.

3. Risk returns are handsome.

Cons:

1. High requirements are set on the principal.

2. Profits may not been seen annually because of the low frequency of forex trading.

Band trading

As a mid-term tactic, it can help traders follow a single trend to go long at support levels, go short at resistance levels, and enter the market at outbreaks, retreats, or rallies shown on moving averages (MA). All these require investors to be professional in technical analysis.

Pros:

1. Full-time jobs are not influenced.

2. More profitable opportunities can be embraced because of the high frequency of forex trading.

Cons:

1. The tactic cannot cope with trends at a large scale.

2. Traders may face the risk of overnight holds.

Intraday trading

As a short-term trading tactic, it only requires traders to determine the direction before deciding to go long or short.

Pros:

1. Profits will be enjoyed every month if investors do well in this field.

2. No risk of overnight holds can be suffered.

Cons:

1. Trading charts should be observed constantly.

2. Hefty losses can be caused by Black Swan incidents.

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