Active trading is a buying and selling activity in the forex market based on chart movement to gain profit from price movement on chart chart. The mentality associated with active trading strategies is different from long-term buy-and-hold strategies. The buy-and-hold strategy uses a mentality that shows that long-term price movements will outweigh price movements in the short term and, therefore, short-term moves should be ignored. On the other hand an active trader believes that short-term movements and capture market trends are where profits are made. There are various methods used to achieve an active trading strategy, each with the right market environment and the risks inherent in the strategy.
Forex trading has many benefits and advantages that can be taken like a large amount of liquidity with low transaction costs and only use margin as a guarantee. Forex trading that runs for 24 hours a day makes many traders create and create various strategies ranging from daily trading, mid-term trading, trading trends to long term trading.
There are so many different styles and styles of each forex trader, where they usually discuss with each other what things are constrained in their trading and bring in a much better direction. For now, we will begin by discussing the two most common strategies. Where these two trading strategies are most widely used by current traders who eventually create their own trading style, Range and Trend trading
This trading range is a very simple strategy whereby a trader will buy a currency that is sold in the hope that the value will return to a certain point within a certain period of time. This strategy can also be referred to as meaningful reversion and similar to value investing.
One key to the success of this strategy is to identify the price points that are more profitable for you. That means identifying the price level to get into where the seller stops selling and the buyer is more likely to start buying. This price point is generally obtained by identifying the level of supply (resistance) and demand (support). Support and resistance levels can be easily obtained by performing technical analysis on the chart. Indicators and oscillators will greatly assist you in the success of this trading system
The second major strategy is to follow trends
One of the most common strategies used by new and experienced traders is a strategy that uses trends as the main direction of glue trading. Trends can identify the price direction in general has moved, then put the trade in the same direction. From here then traders can get the direction of price movements to gain profits.
The trading strategies that rely on the following trends are very popular because strong trends tend to produce good movement directions and generate substantial profit returns. Often, the strong results come from the movement toward the previous trend. Although there are several advantages, here are two advantages of trading trend.
Fortunately, the trading trend is simple. The ease of identifying trading in large part is why new and experienced traders use some form of trend analysis in their trading plans.
If you have good capital endurance, and do not want to open every day trading platform then you can try this strategy to get maximum result.
If you are interested in trying out trading trends, but are not sure where to start, find out three ways to trade a strong forex trend to your best personality.