Lots of people around the globe thinks that to make money from forex trading strategies is an easy work. They entered in this financial market blindly without doing authentic research. They have heard some outstanding stories about how a person earned thousands of dollars in a day without doing nothing. But at the end, reality is little bit harsh and cruel. These people don’t realize that all those successful person who earn thousands or even millions of dollars have given several of years of their lives to learn the art of trading. But you guys are lucky because you can get all necessary knowledge and tools which is needed to become a successful trader with out any hassle. Power of internet is enormous.

As a trader you should learn how to restrain from yourself from scams. Forex scams are so powerful that thousands of people every year lost millions of dollars due to them. One should learn the art to differentiate between the scam and legit system. Always work with reliable system who has positive rating and clean history.

This post is solely dedicated to beginners and intermediate level traders who want to the adopt forex trading as a full time business and all the forex trading strategies which i will mention in this guide are well professional and easy to use. So lets the party began.

My 9 Killer Forex Trading Strategies

Strategy 1: Optimizing Your Risk With Respect To Your Reward

It is simple but one of the most effective strategy which will sustain you in this market for long time. Trading run on this principle to minimize the risk while achieving most from your favorable market. Online trading market is fluctuated every second and one can lose all his money if he is not analyzing the market properly. Never start with big bucks because in this way you can lose all your money and next time you afraid to invest and will never learn the in’s and out’s of this market.

Strategy 2: Analyze The Trading Signals Carefully

You should carefully analyze the market when the currency rates up and when they are down. Some times people get out from trade because market is start to falling and they are afraid to lose any money. In this way they make less profit. On the other hand there are some people who stick to two positions for long time and when the market is falling then they have a hope that it will rise again. But on most cases it never happened. What i am trying to say that is you have to find a way between them. You have to carefully analyze these scenarios if you want to become a successful trader.

Strategy 3:Currency Pair Is Important

This is very crucial step if you are investing in currencies then you have to choose such pairs which could convert better. For me these are best pairs EUR/USD, USD/JPY,GBP/USD.

Major Currency Pairs and Facts

These are some major forex currency pairs with their nickname in parenthesis.

EUR/USD – Euro vs. the U.S. dollar (Fiber)
GBP/USD – British pound vs. the U.S. dollar (Sterling, Cable)
AUD/USD – Australia dollar vs. the U.S. dollar (Aussie)
NZD/USD – New Zealand dollar vs. the U.S. dollar (kiwi)
USD/JPY – U.S. dollar vs. the Japanese yen (the Yen)
USD/CHF – U.S. dollar vs. the Swiss franc (Swissy)
USD/CAD – U.S. dollar vs. the Canadian dollar (Loonie)
XAU/USD – Gold
XAG/USD – Silver

Some pairs has positive mutual relation between them like EUR/USD, GBP/USD. If one currency pair is rising then other will also moving in the same direction. On the contrary, USD/CHF EUR/USD is negatively correlated because of the fact if USD/CHF is rising then EUR/USD is decreasing. This trend is successfully analyzed by top forex marketer and can help greatly in your business.

Strategy 4: Money Management Strategy – Calculate The Risk

Money management has the paramount importance in forex trading business. Because in this way,you can calculate your risk by going through your account balance. Top forex experts usually take 1-4 % risk of their account on each trade. You can set your risk meter according to expertise and account balance. A exceptional trader is who calculate his profit and loss and have a disciplined attitude towards his business. Let say if your average profit ratio is less than average loss your ratio then what you will need to fulfill this gap. For example if you loss 10 trades then you will need 20 winning trades to make your business go. Analyze your profit and loss ratio and don’t hesitate to take risk but only take calculated risk.

Strategy 5: Be Aware From Latest Events And Volatile Sessions

Keep your eyes open on latest events and economic news. Because things can change drastically on these events. Sometimes,government increase the interest rate or other financial reforms are declared. As a good trader, you should analyze these changes and try to figure out how market respond to these events. In this way, you can learn big in no time. Sometimes, pips moving 200 to 400 in minutes on these events. Powerful trader tries to get benefit from these changes and they stop buys and sell orders.

Strategy 6: What Is Turtle Trading Strategy?

Strategy 7: Best Forex Trading Time

This is one of the most important question in forex trading business and every beginner trader is looking for the answer desperately. So when is the Best Time of Day to Trade Forex? Basically, it depends on in which zone of the world you are living. For most of the traders asian trading hours are best because of the fact, at this time European currency pairs like EUR.USD shows best conversions.

Dailyfx is has conducted a great research paper on this issue. According to their reports, analyzing 12 million trades they have found that timing of trading has play an important on your success and failure. Their amazing experiment showed that lots of people were failing in forex trading strategies because they are trading at wrong time. Some trader got astonishing results by trading on late US, ASIAN and early European time. Their timing varies from 2PM to 6 AM eastern time (New York), which is which is 7 PM to 11 AM UK time.

You can find more about this issue on this detailed article by David Rodriguez, a quantitative strategist here:Best Forex Trading Time

Strategy 8: Why Chart Pattern Are Necessary?

Chart pattern are very important because they had drawn after the intensive research and time period. These pattern can show the way to trader when market is rising and when falling and what you can on these changes. A simple example of successful trader Dan Zanger who has exploit these charts pattern and made various working combination which in return make him millions of dollars. Some of top patterns chart are:

• cup and handle
• parabolic curve
• flags and pennants
• wedge formation
• triangle ascending, descending and symmetrical
• inverted head and shoulders
• channel formation
• head and shoulders

Once you know what they really means and how to use them to predict future market can make you pro trader. From all charts i think head and shoulder is works best.

Strategy 9: Support And Resistance

Support and resistance is all about analyzing supply and demand. In financial dictionary, supply means selling and demand means buying. When demand increases it means that prices will be risen up and and when supply increases it means price will be down. If you are a trader then you will be already aware of the fact that most securities are lying under tight ranges throughout the year. Sometimes they rises and sit there for some time and then dropped back to bottom for some time. Your business depends on these variation. As a trader, you can get huge benefits or loss from these changes. Best way to deal these variation is to selling given security by doing a reversal trade at the top and buying a security around bottom. This way you can earn huge profits on your trades.

One key point here to note that the longer the range continues then there will a great chance for more major shift in the form of breakout.

You can read more about support and resistance here

Forex trading is like ocean and we have list down some jewels that can help you to become a successful trader. These 9 forex trading strategies is not the end word and there are numerous other powerful strategies that can rock your business in short time. Please list down some of your favorite forex trading schemes that helped you to earn huge profits from your business in the below comments section.