This article looks at the common active forex strategies that you should consider using.

When you trade on the forex market you have to know about the different forex strategies that you can use.  There are a number of active and passive strategies that you can try.  It is important that you find out what the most common active strategies are and what you need to do with them.  You should also consider which ones you will be most comfortable with when you trade.

What are Active Forex Strategies?

Before you can look at the most common active forex strategies you need to know what an active strategy is.  An active trading strategy is one that you have to monitor.  The passive trading strategies are the buy and hold trading strategies where you open a position and hold onto it.  With active trading strategies you have to open the position and watch it to ensure that you are making a profit with this.

Active trading is considered to be more stressful than other types of trading.  This is due to the pressure of the shorter timeframes that you use and the fast decisions that you have to make with the strategy.  If you cannot make a decision very quickly you are going to run into major problems when you use active trading.

The Day Trading Strategies

One of the active strategy types are the day trading strategies.  Day trading strategies cover a number of different types of strategies that are completed on the short-term.  If the trade is not held for more than a single day then it is considered to be a day trade.  There are a few commonly used day trading strategies that you should know about.

Intra-day trend trading is one of the strategies that you should know about.  When you use this strategy you are going to trade on the trends in the market that you can determine on the short-term charts.  If the trend lasts too long then you should not be using it as a day trading strategy.

Swing Trading Strategies

When you look at trading in the medium-term you should consider the use of swing trading strategies.  Most medium-term trading is considered to be swing trading.  Swing trading will look for the moments when the trend turns in the market.  These times are generally known as the swings in the market and this is where the trading strategy got its name.

Swing trading is generally done with the use of technical analysis.  However, you can include fundamental analysis into this trading to determine when the swings in the market may happen.

The Use of Scalping

There are some traders who feel that scalping is a type of day trading.  However, there are others traders who feel that this short-term trading strategy should be classed separately.  Scalping is very different to other day trading strategies because of the timeframe that you are looking at.  When you scalp the market you are not going to hold the position open for more than 5 minutes.  You are also going to be making very small profits from this trading.  There are some traders who make all of the profits from scalping while others look at using scalping as a supplementary strategy only.