Forex Trading is much more profitable than anything else. There are many simple forex trading strategies that can be used for profitable Forex trading. The strategy should be well planned and should be in line with our goals for trading. What people generally do is they do complicated procedures and then they follow a very strict regime for the same which is not bad but very time consuming and sometimes because the market is unpredictable so the planned regime also becomes awkward to follow due to a series of this planned strategy can be followed. Several strategies are being listed here which can be followed for convenience.
1. Risk management
2. Target pips
3. Reward to risk ratio
1. Risk Management - Risk management is a strategy which is an effective strategy. As risk management is an important factor. Traders want to get more benefits with just one trade. Traders want to squeeze more profit from just one trade. So in this way they extend their risk. Extending risk is not a problem but no proper risk hedge is taken for traders who place their positions at very high risk. In forex trading, traders get high leverage. And this leverage has become a risk on their capital and on the contrary they prolong more risk because they do not have proper risk management. So managing risk is an important strategy to follow. There are several strategies for risk management that traders can follow to trade forex.
(A) Count every Pip- When we trade in forex the profit is in the PIP. Generally, traders target large PIPS and this puts their capital at stake. Traders should not ignore the value of every single pip. Profits can be earned in very small pips also of course according to the currency in which we have traded.-
(B) Spot Forex Rates - In Forex Trading we trade in a minimum of two currencies one is the base currency and the other is the quote currency. The currency we buy is the quote currency and the currency we buy is the base currency. The price at which we enter into a contract for the currency executed at that particular price is the spot rate. Risk can be managed by using spot rates to determine the spot rate between the currency of your trading account and the quote currency. -
(c) Difference between Stop Loss and Cost- The difference between stop loss and cost can be used for risk management. The difference between Stop loss and cost is a very big factor if this difference is managed properly then it is a very effective way to manage risk.
2. Target Pips- Generally, traders target pips which are very hard to come by and very risky. Targeting unattainable pips is very disappointing and also risking capital for no good reason. So traders should target realistic pips. Targeting based on expectations and desires that have nothing to do with reality. This means that traders expect that they have to get mangoes from apple trees.
3. Reward to risk ratio - The reward to risk ratio is again an efficient strategy to follow. If for a small prize we risk our big capital then it is not a good thing to follow. The reward to risk ratio should be in favor of our trading style, it should not be contradictory otherwise it will cause all efforts to be wasted.
Conclusion - Simple successful forex trading strategies are all about trading strategies that any trader can follow for better profits. Always remember a planned shot with small steps is always better than a big shot without planning because in a planned shot there is some room for improvement but in a massive shot, there is no way we can understand what to do next. So try to follow the strategy to win the results.
Winning doesn't just mean gaining, but gaining experience in itself is a reward that can be done with a planned move that isn't even planned and can't be justified.