Learn the Best Forex Trading Strategies

Forex strategies involve the combination of indicators and price patterns for the derivation of tradeable signals. There are also fx trading strategies based on fundamental factors, but all short term trading strategies must include some technical component. In this section we aim to explain in detail the various aspects of forex trading strategies, both based on fiundamental as well as technical analysis. A basic winning strategy for beginners can be found here in our Forex For Dummies .

Getting Involved in Forex Day Trading

January 25, 2015 at 6:03 AM

Day Trading can offer a very exciting and lucrative way of trading the forex market for those who take the time to prepare appropriately for the endeavor. Read More

Trade Timing — How to Decide Entry/Exit Points

If money management is one half of trading, determination of entry/exit points constitutes the other half. No amount of successful analysis will be useful if we can’t determine good trigger points for our trades. Read More

The Basics of Forex Swaps

In the forex market, a foreign exchange swap is a two-part or two-legged currency transaction used to shift or swap the value date for a foreign exchange position to another date, often further out in the future. Read More

Top 10 Forex Entry Signals — Part 1

March 26, 2014 at 4:51 AM

With all of the complexity in forex trading, there is a very simple way to describe success. Almost everything boils down to choosing the right currency pair, entering the market at the right time, and knowing when to exit. Read More

Short Term Forex Trading Strategies

August 30, 2013 at 7:30 AM

Forex trading can encompass a wide range of different trading strategies and techniques. Read More

Forex Carry Trade Strategies

June 27, 2013 at 5:15 AM

In general, the forex trading strategy known as the Carry Trade refers to an increasingly widespread forex trading strategy that is usually implemented over longer term time frames and involves taking advantage of the interest rate differential prevailing between two currencies. Read More

Currency Carry Trade — Let the Interest Rates do the Work

June 27, 2013 at 4:55 AM

Experience shows that the most important driver of currency trends is the interest rate differential of central banks. Many financial strategies attempt to capitalize on this knowledge, but the most basic and widespread strategy is the carry trade, see a. Read More

Computing Swap Points

June 13, 2013 at 11:35 AM

The difference between the forward rate and the spot rate for a particular currency pair when expressed in pips is typically known as the swap points. Read More

The Best and the Worst Times to Trade Forex

June 13, 2013 at 11:28 AM

One of the biggest plusses that the foreign exchange market offers traders consists of the fact that currencies trade twenty four hours a day, five days a week. Read More

Forex Scalping — Extensive Guide on How to Scalp Forex

June 12, 2013 at 9:08 AM 5 Comments

Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their. Read More

Powerful FX Strategy: Range Expansion Reversal Strategy Part 1

May 16, 2013 at 10:40 AM 1 Comment

Have you ever thought about the daily range of a currency pair? If you have been trading for some time, you know that currency pairs tend to reach the extent of their daily range at some point in the New. Read More

Starting Out Trading Forex

May 16, 2013 at 10:26 AM

Public interest has steadily grown in the forex market since the relatively recent advent of online forex trading for retail clients. Most online forex brokers offer their proprietary trading software free of charge to their clients, as do some independent. Read More

Forex Broker Lots

May 16, 2013 at 10:25 AM

In the forex market, the term lot usually refers to the minimum transaction amount for a particular currency pair. Lot sizes will usually be expressed in terms of the base currency for that pair, but might also be denominated in U.S. Read More

Rollover Fees

May 16, 2013 at 10:24 AM

When keeping positions overnight while trading forex, you will inevitably come across the fee charged by your broker to perform rollovers. Read More

Trading Forex Versus Stocks

May 16, 2013 at 10:19 AM

The foreign exchange market has often been the market of choice for many savvy traders, commonly being preferred over bond, stock and commodity markets for its liquidity and other desirable characteristics. Read More

Where Forex Trades

May 16, 2013 at 10:15 AM

In general, the foreign exchange market has no centralized exchange, although futures on some currency pairs are traded on major exchanges like the Chicago International Monetary Market or IMM in the United States. Read More

The Carry Trade and Its Risks

May 16, 2013 at 10:04 AM

When considering taking on a carry trade position, a forex trader will first want to take into account the interest rate differential and their forecast for the currency pair over the desired time frame for the carry trade. Read More

Learning From Other Traders

May 16, 2013 at 8:20 AM

It stands to reason that a great deal of useful knowledge about trading forex and other markets can be gleaned from the experience of other traders. Read More

Common Myths About Forex Trading

May 16, 2013 at 8:12 AM

The forex trading market makes up the largest global marketplace and trades round the clock from Sunday night to Friday afternoon, trading somewhere on the order of trillions of dollars every day. Read More

Forex KISS — How Keeping It Simple Can Improve Your Bottom Line

May 16, 2013 at 8:08 AM

It’s a phrase everyone knows — Keep It Simple Stupid [or Keep It Short and Simple]. However, forex KISS is better known than practiced. Part of this is because of marketing, as well as that ever-present keep up with Mr. Read More

Trading Pegged Currencies Low Risk Fixed Currency Trades

May 16, 2013 at 7:48 AM

A fixed or pegged currency is one where the currency’s value is matched to that of another asset. The asset may be a single currency, or it may be a basket. Read More

Exploiting Currency Options Expiries for Forex Trading

May 16, 2013 at 7:46 AM

Options are contracts that give the buyer the right to buy or sell an asset at a pre-specified time and price. In return, the seller receives a fee for writing the contract which is termed a premium. Read More

Forex Compound Interest Effects

May 08, 2013 at 7:16 AM

Compound interest can really work for you when trading forex and can help you turn a decent trade into a great trade if it can be held over time. Read More

Forex Trading Words of Wisdom

April 18, 2013 at 7:49 AM

Over the years, many forex traders have found themselves in trading situations which have a tendency to repeat over time. A number of these situations have had the honor of meriting a trading maxim or adage from which a novice. Read More

Cross Rates and Cross Currency Pairs

April 17, 2013 at 8:56 AM

The forex market’s most actively traded currency pairs all include the U.S. Dollar, and those pairs tend to be where the greatest liquidity exists in the forex market. Read More

Technical Strategies Based on Crossovers

April 17, 2013 at 7:42 AM

In this extensive article we will study the various kinds of crossovers and how to exploit, interpret and confirm them based on the interaction of indicators with the price and each other. Read More

Powerful FX Strategy: Range Expansion Reversal Strategy Part 2

April 16, 2013 at 2:25 PM

In “Part 1” of this two-part series, we outlined a very powerful forex trading strategy, commonly known as the “Range Expansion Reversal Strategy.” This strategy takes advantage of the tendency of markets to revert back to their mean average over time. Read More

Spot Market Versus Currency Futures Trading

March 28, 2013 at 9:32 AM

Currency futures trade in a completely different manner than the cash foreign exchange market where trading is done primarily in the spot and forward markets over an electronic and telephone network. Read More

Strategies for Trading Forex on News Releases

March 28, 2013 at 7:46 AM

One of the most interesting trading strategies that forex traders commonly employ is trading on economic news releases. Specifically, closely watched economic news items such as the United States’ Non-Farm Payrolls and, Gross Domestic Product numbers tend to result in. Read More

Keep Your Focus on Success Not on Trading Perfectly

March 28, 2013 at 5:48 AM

Trying to be a perfect trader who makes money on every trade they take and who never makes mistakes will very likely only frustrate and perhaps even limit a trader needlessly. Read More

Trading Market Classifications

March 28, 2013 at 5:42 AM

Trading markets generally tend to fall into one of the two primary categories of trending and non-trending markets. Read More

Trend Trading Time Frames

March 27, 2013 at 8:48 AM

Several different possibilities exist for how to trade a freshly identified forex market trend. These strategies can vary significantly depending on the time frame that the directional trending movement in the exchange rate occurs within. Read More

Trading Trends in Forex

March 27, 2013 at 8:39 AM

One of the most popular sayings heard on Wall Street just has to be, The trend is your friend. Read more forex trading words of wisdom. Read More

Trading Managed Currencies — Exploiting Central Bank Policies to Make a Profit

March 27, 2013 at 5:53 AM

Managed currencies are those such as the Singapore and Hong Kong dollars, the Chinese yuan, the Russian ruble, where the Central bank doesn’t control the day-to-day fluctuations of the currency, but attempts to manage the direction of the trend by. Read More

How Professional Strategic Forex Traders Operate

March 22, 2013 at 3:12 PM

Those who have arrived at the enviable position of being a professional strategic forex trader for a major international bank or hedge fund tend to focus on taking advantage of longer term moves in the forex market. Read More

Predicting Market Extremes Using the Put/Call Ratio

March 22, 2013 at 2:43 PM

Options have long been popular with forex traders for hedging, for directional bets, maximizing profit or for more complex strategies that are out of the scope of this article, but over the years, the record of options trading for buyers. Read More

Trend Following — The Most Popular Strategy in all Financial Markets

March 22, 2013 at 8:30 AM

Trend following is perhaps the most popular long-term strategy in all financial markets. It is exceedingly effective and profitable when the conditions are favorable, is quite straightforward in its methodology, and there are many individuals, past and present, famous or. Read More

Trend Reversals in the Currency Market: How to Time them?

March 22, 2013 at 8:12 AM

As traders, we are continuously told by veterans not to try to time markets due to the great risks involved. It is a fact that if you make a sizable commitment in either direction and the market fails to act. Read More

Essential Forex Trading Terminology

March 21, 2013 at 11:51 AM

Like many specialized professional fields, the forex market has developed and commonly uses a set of brief terms or phrases that together form the set of forex trading jargon terms. Read More

The 24 Hour Forex Market

March 21, 2013 at 11:44 AM

One of the main reasons the forex market has become so popular, especially now that retail accounts are available for online trading via forex brokers, is the fact that the market trades continuously 24 hours per day, five days a week. Read More

How to Become a Forex Trader — The Simple Three Step Guide

March 21, 2013 at 10:39 AM

Forex is one of the most volatile type of investment markets and one of the most exhilarating experiences in the world. Forex, in it’s nebulous form, is simply trading currencies-buying and selling, betting for and against the various currencies of nations. Read More

What Kind of Stop-Loss Order Should a Trader Use?

March 21, 2013 at 10:28 AM

In this article we will discuss the various ways to implement a stop loss order. Every trader who has had dealings in any of the financial markets is familiar with placing and executing a stop loss order, but many are. Read More

Less Can be More When Trading Forex

March 21, 2013 at 10:21 AM

A good reason to consider trading forex involves the relatively low learning curve involved in trading the various currency pairs. Read More

Using the COT Reports to Predict Forex Price Movements

March 21, 2013 at 10:13 AM 2 Comments

Before examining the COT reports and a few ways of using them, let us note two important details: Read More

Diversifying Your Portfolio With Foreign Currencies

March 21, 2013 at 8:45 AM

Portfolio diversification consists of an investment strategy which basically spreads risk among a number of different types of investments. Read More

Trading Strategy 101 — Cut Losses Short, Let Profits Run On

March 21, 2013 at 8:27 AM

Perhaps one of the most time honored and popular sayings among forex traders has a number of variations along the lines of the following words of wisdom: Read More

How to Create a Forex Strategy Based on Technical Analysis

March 20, 2013 at 9:01 AM

Technical strategies aim to predict future prices on the basis of past developments. All that the technical analyst is interested in is the price, and news, or data have no bearing on his decisions. Read More

Taking Out Stops in the Forex Market

March 19, 2013 at 12:23 PM

Many traders new to the forex market tend to think that because the market is so huge — with trillions of dollars traded per day — that it cannot be easily manipulated. Read More

Trading Forex with Multiple Time Frames

March 19, 2013 at 12:01 PM

Choosing an appropriate time frame is one of the basic decisions for forex. Time frame refers to the width of the window in which you’ll trade. Read More

Key Tips for Forex Trading Success

March 19, 2013 at 11:45 AM

Anyone can get lucky trading forex a couple of times, since exchange rates can fluctuate up and down with roughly equal probability. Nevertheless, forex trading needs to be approached in a highly-disciplined manner in order to achieve optimum results over. Read More

Cross Rate Trading Strategies

March 19, 2013 at 11:22 AM

Trading in cross currency pairs offers significant opportunities to the forex trader. Read More

Forex Rollover Considerations

March 19, 2013 at 11:08 AM

The interest rate differential between a pair of currencies can either be your best friend or your worse enemy when trading forex since it affects forex rollover rates. Read More

How to Trade Forex Using Trends

March 19, 2013 at 10:53 AM

Trends simply help us anticipate market activity. This allows us to get into a trade early and ride the upward trend until the peak. It also prevents us from staying in a position too long and end up losing some gains. Read More

Top 10 Forex Exit Signals — Part 2

March 19, 2013 at 9:56 AM

In Part 1, we pointed out that one might regard forex as being somewhat simple: you just need to know which pair to trade, when to get in, and when to get out. Read More

Range Trading the Forex Market

Range trading in foreign exchange involves the ubiquitous attempt by forex traders to buy low and sell high. While this may appear very basic at first glance, doing so in practice can prove somewhat elusive. Read More

Assessing Forex Trading Risk With Volatility

Many forex traders adjust their position size depending upon the risk that they perceive exists in trading a particular currency pair or time frame. Read More