There are thousands of trading strategies out there which can be of potential use when you’re investing in the foreign exchange markets. Despite this, not all of them are suited to all people. This is because different kinds of people operate differently under the pressure of open markets, so depending on how you handle yourself in different situations should dictate which trading strategy you adopt. Here are 3 different trading strategies for 3 different personality types.
If you like things to happen quickly, you’d probably be suited to a strategy which allows you to make decisions quickly wherever you are. Therefore, you should download a forex trading platform app to your mobile phone and start day trading using strict limits which means that you can make profits quickly without putting yourself at risk. The only downside to this strategy is that unless you trade in volatile markets, there’s little chance of making large amounts of money, though caving in and participating in volatile markets could put you in a dangerous position.
Do you like to take things easy? If you do, you’re probably not suited to fast-paced day trading. Instead, you should take your time on longer trades which last up to a week, as this will allow you to evaluate the market at your own leisure and make accurate predictions about when the trend you’re riding is about to turn. With this technique, you can set your limits quite high because unless your market is prone to fundamental geopolitical or socioeconomic problems, you’re likely to be able to see when a trend is about to buck way out in advance. This strategy might give you fewer instant wins, but playing the slow and long game can be a winning strategy.
If you have the patience of a saint and the eyes of an eagle, you might be more suited to a strategy which favours fast thinking and accurate responses. For this, apply yourself in the world of chaotic markets by participating in short currency trades which move up and down with volatility. This will force you to make snap decisions on the currency trends you are riding because they have the potential to change with very little warning. If you succeed using this strategy, however, there’s a lot of potential to win big.