submitted by True_Soullah to IQOptionIB [link] [comments]
When working on the financial markets, traders can utilize dozens of different strategies.
It is worth saying that there is no ultimate one-fit-all strategy that works for all traders, all instruments and all timeframes. Each trader has to develop a trading strategy of his own. What trading strategy is the best? There is no clear answer to this question, as some strategies that have demonstrated decent results in the past do not work today. Put shortly, an optimal strategy is the one that works. Or, in other words, the one that consistently provides positive returns. If the strategy consistently provides negative results (the trader is losing more than he is earning), this strategy should obviously not be used.
As already mentioned, as there is no single «best strategy», traders may want to look at several factors when developing a strategy of their own. First is the instrument they want to trade. It is no secret that that Stocks behave differently than Forex, and ETF trading is quite different from cryptocurrency trading. Hence, the first rule. Decide on the financial instrument before developing a strategy. Secondly, choose the time frame you want to trade. Intraday trading is radically different from value investing. Choose the time frame first and decide on the strategy second. We have covered the time frame and chart types in our previous article. Thirdly, adjust your trading strategy to your trading style. As in life, we are much more likely to be successful in something that we like. The same applies to trading. If you don’t like how a particular strategy works, find another one. It is as simple as that.
Now, to the strategies themselves. As already mentioned, trading strategies are numerous. This article is not enough to list all of them. Nevertheless, we can provide a list of the most notable ones.
Day trading is a strategy that implies that all positions are being opened and closed within the same day. This strategy is common among Forex traders. Currency pairs can demonstrate decent movements over the course of one day. Moreover, the use of leverage can turn miniscule price swings into tangible gains. Forex, however, is not the only asset class to be traded like that. Cryptocurrencies, for example, can also be traded on a daily basis. One thing that is absolutely required for day trading is high volatility, as it is impossible to trade when the market is flat.
A strategy that is commonly used with stocks, value investing implies that the trader first has to find the discrepancy between the market and the intrinsic (real) value of a particular stock. In order to do this, he will go through earnings reports and key financial metrics. If the intrinsic value is higher than the market one, it is wise to buy the stock. Conversely, if the company is traded at a price that is higher than its intrinsic value, it can be expected to go down (the time when this will happen, however, is not set).
Swing Trading Strategy
When using this strategy, traders try to capitalize on the sudden price swings, hence the name. In a lot of markets, and for a lot of assets, sudden price movements are quite common. One way to apply the swing strategy is to find a strong trend and wait for a retracement. A retracement is a short-term move in the opposite direction that doesn’t change the direction of the bigger trend. When the retracement happens, the asset price will depreciate, but since it is only a retracement and not the trend reversal, the price can be expected to go up again. All in all, this is a practical application of the ‘buy low, sell high’ technique.
Scalping is a subtype of the day trading strategy. As in day trading, all deals are being opened and closed within the same day. Yet, the number of deals and their duration will vary significantly. When applying the classic day trading strategy, you can open as little as one deal and it will still classify as day trading. In scalping, things are a little bit different. Traders open a big number of deals, stacking up small gains over time. In scalping deals can be as short as a few seconds. All in all, it is an interesting strategy that a lot of traders, especially on the Forex market, find useful.
Political and economic news have the potential to affect the asset prices and move the entire markets. Here are two examples to illustrate how powerful news trading can be. On the Forex market, traders buy and sell national currencies in pairs. Their exchange rate is a good proxy for the well-being of the respective national economy. When the American economy flourishes, so does the USD, and vice versa. When the US economy is in crisis, the USD will also depreciate. Of course, it is more complicated than that, but the general idea is roughly like this.
Forex is not the only market that is affected by the news. The equity market, where corporate stocks are traded, is another example. Corporate news, like an appointment of a new CEO or a new sales milestone, can make the company move up or down. People, interested in stocks trading, have to follow corporate news and evaluate the overall business climate in order to make well-rounded decisions.
These are the 5 common trading strategies. Of course, they are not limited to these, as there are endless opportunities on the market. Yet, for those willing to start somewhere, this list can provide an idea or two. Choose the one that suits your trading style and you are good to go.
Simply share this simple knowledge with your community and you will Become a successful Introducing Broker with IQ Option!
Earn up to 45% commissions!!
Sign Up now!
The daily trading turnover of the site is more than 6 trillion dollars. The Forex market is the leading trading platform among all world currency markets. The main characteristics that distinguish it from others: the highest liquidity, profitability, as well as the ability to trade in both directions (buying and selling). Forex trading is based on making a profit from the exchange rate ... Indicator No.1: A Trend-Following Tool . It is possible to make money using a countertrend approach to trading. However, for most traders, the easier approach is to recognize the direction of the ... The major benefit of Intra-day Forex trading is- a trader can make the potential trades in the news hours, keeping up with the liquidity in his account and can have extra competent check on trades. Therefore, more of the expert traders are inclined towards intra-day trading. The technical analyst’s studies on-line Forex charts and uses the past market action to achieve their foremost goal ... Trade stocks, ETFs, forex & Digital Options at IQ Option, one of the fastest growing online trading platforms. Sign up today and be a part of 17 million user base at IQ Option. The daily charts are by far the strongest signals and may lead to movements lasting days, weeks, or even months. The hourly charts are in the middle and may produce the same strong signal as the daily chart, but they are more likely to produce a movement lasting a few hours, days or weeks at best. Shorter time frames are weaker and will provide less lasting movements. As always, keep an eye ... IQ Option Although the candles are long and show a strong trend, many are right next to each other which means it would be easy to go short at the wrong price and wind up with a losing trade. Changing time frame could be a help, what I’ve found is that the chart is more suited for longer term trend-following trades, so I use the daily charts. The shorter-term charts are often too volatile to produce a ... The time of the Forex market is the schedule of trading sessions, British Summer Time. Forex market is open 24 hours from Monday to Friday. When the Euro goes up and the dollar goes down, the trader would want to buy the pair, selling it later at a higher price and thus making profit. Should the opposite hold true (the US dollar is getting stronger against the EURO), it may be wise to consider ... Advanced live charts for forex trading are free and easy-to-use at ForexLive. These real-time charting packages let you apply technical analysis to hundreds of FX pairs. The charts update live and ... MYTS Forex Trading Guide ... They’re used both as a trend-following indicator and a counter-trend trading indicator. Moving averages represent the average of the last n-period closing prices. With each new closing price, a moving average drops the last closing price in its series and adds the newest one. Moving averages are usually plotted on the price chart itself. Learn more, take our free ...
[index]          
iqoption Manual Trading ..How to avoid news time and how to check news. Day Trading Strategies for Beginners: ... Learn Forex Trading: Candlestick Entry Techniques - Duration: 24:23. Daniel Garnier 458,286 views. 24:23. تریدهای اقای اینوک جلسه ... The ONLY Forex Trading Video You Will EVER NeedTHIS QUICK TEST WILL HELP YOU BECOME FINANCIALLY FREETake it HERE: https://discover.tiersoffreedom.comTo join my ... This video shows how simple it is to analyse a Forex chart, with a USDJPY example we execute a top down analysis using strictly tools and price action. This ... This video is very very important on the topic how to draw trend line if you trade in any binary option or any forex market, you must need to know how to draw trend line and how to do live iq ... What are the most profitable ways to trade the forex markets? What are some of the most profitable Forex Trading Strategies In this video, Adam Khoo shows yo... Day Trading Using Trend and Momentum - Duration: 59 ... TRO DAYTRADING WITH DAILY CHARTS - Duration: 12:09. TheRumpledOne 5,871 views. 12:09. 2018 08 09 16 28 August Day Trading! - Duration: 1:17 ... Forex Trade With Us http://bit.ly/2EYIbgI Email: [email protected] Brokers I use https://bit.ly/35kgYkc P.S MY INSTAGRAM IS GONE NOW SO IF SOMEBODY W... Learn my other profitable strategies: https://bit.ly/2xpgWqM In this video, I will walk you through a simple forex trend-following strategy that I've been tr... Click Here To Start Trading With Hugosway 👇https://www.hugosway.com/?cmp=3l0g1x2i&refid=2380 SUBSCRIBE FOR MORE VIDEOS LIKE THIS. ️https://www.youtube.com/c...