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2. Intermediate Strategies

Double Red Strategy

This is a short-term strategy based on price action and resistance. The trade is planned on a 5-minute chart. How to profit? Choose an asset and watch the market until you see the first red bar. Then wait for a second red bar. If the second red bar closes lower than the first red bar, then it’s a win. Usually, what happens is that the third bar will go even lower than the second bar. This is the point where you should open a short position. A few more tips that are great to follow in your forex journey include:

  • Experts advise against risking more than 1/6 of your free trading capital, especially when confidence is lacking.
  • Trends tend to develop quickly as the number of traders following them increase.
  • Stick to your strategy
  • Close unsuccessful position

In the forex market, $5.3 trillion is traded daily, making it the largest and most liquid market in the world – and traders can trade with small amounts such as $100. Get Started!         

Categories
2. Intermediate Strategies

Pinocchio Strategy

As with the fable – Pinocchio’s nose grew long when he was lying and the same happens with this strategy! When the wick is longer than the body, Traders will know that the market is deceiving them and that they should trade in the opposite way.    

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2. Intermediate Strategies

Longer Term Position Trading

Position trading is where traders look to hold trades over much longer periods of time and take a ‘position’ in the market.  This style of trading is normally carried out on the daily, weekly and monthly charts.  As a position trader, traders will often be trying to use the overall larger trend to gain the best positions and capture long running trades.    

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2. Intermediate Strategies

False Breakout Trading Strategy

A false break occurs when price looks to breakout of a support or resistance level, but snaps back in the other direction, false breaking a large portion of the market out.  When prices begin to breakout higher a large portion of the market starts to look for the resistance to break and will enter long trades, often setting their stop loss on the other side of the resistance.

  • Can be traded on many time frames
  • Can be used in many markets and pairs
  • Can be traded with many triggers as the major entry
  • Often entering when the majority of the market has been stopped out entering in the wrong direction
Categories
2. Intermediate Strategies

Swing Trading Strategy

Swing trading is a strategy by which traders hold the asset within one to several days whilst waiting to make a profit from price changes or so called “swings”.  Swing traders use a set of mathematically based rules to eliminate the emotional aspect of trading and make an intensive analysis.    

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2. Intermediate Strategies

Spread / Pair Trading Strategy

Pair trading (spread trading) is the simultaneous buying and selling of two financial instruments which relate to each other. The difference of the price changes of these two instruments makes the trading profit or loss.   Spread trading can be of two types:

  • Intra-market: traders can open long and short positions on the same underlying asset
  • Inter-commodity spreads: Traders can open long and short positions on different market assets which are related to each other, like gold and silver.
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2. Intermediate Strategies

Buy and Hold Strategy

The Buy and hold strategy is a type of investment and trading traders buy the security and holds it for an extended period of time.    

Categories
2. Intermediate Strategies

Portfolio / Basket Trading Strategy

Portfolio trading, also known as basket trading, is based on the mixture of different assets belonging to different financial markets (Forex, stock, futures, etc.). The concept is diversification, one of the most popular means of risk reduction.    

Categories
2. Intermediate Strategies

Forex Hedging Strategy

Hedging is commonly understood as a strategy which protects investors from incidence which can cause certain losses. The idea behind currency hedging is to buy a currency and sell another in the confidence that the losses on one trade will be offset by the profits made on another trade. This strategy works most proficiently when the currencies are negatively correlated.    

Categories
2. Intermediate Strategies

Carry Trade Strategy

Carry trade is a strategy in which traders borrow a currency in a low interest country, converts it into a currency in a high interest rate country and invests it in high grade debt securities of that country. The principle is simple- buy a currency whose interest rate is expected to go up and sell the currency whose interest rate is expected to go down.