There are a lot of factors that can make or break your chances of success in the forex market, from the amount of money you risk to your general knowledge of what moves the markets, and everything in between. One of the most crucial keys to success is to trade with a solid trading strategy that has been tested and proven to actually bring in profits over a period of time.
Forex traders typically base their strategies on two different types of data. Fundamental strategies consider economic data and data that is affected by businesses, while technical analysts use indicators and study historical price data. Trading strategies consider data based on their chosen method and then provide traders with techniques that tell them when to enter or exit the market in order to make a profit. Your trading strategy will guide you and ensure that your trading decisions are structured and based on as much fact as possible to increase your chances of making money.
If you search for trading strategies online, you’ll find a long list of options. The choices can honestly be overwhelming for beginners, as there are so many different factors to consider when choosing a strategy. There is no one-size-fits-all method, as every forex trader has different needs and thinks from a different perspective. So which strategy should you choose? Below, we will break down three of the best trading strategies out there so that you can decide for yourself based on your own personal preferences. Keep in mind that many veteran traders might not tell you about these choices, as many professionals prefer to keep beginners out of the loop when it comes to top-rated trading secrets for success. After all, it is a competitive industry.
Not Sure Which Trading Platform to Use? Try MetaTrader 5
MetaTrader 5, or MT5, is one of the most popular trading platforms out there, right alongside its predecessor MT4. MetaQuotes developed this platform to offer more financial instruments, trading tools, and resources. Here are a few of the highlights that influence our love for this timeless trading platform:
- Provides access to a wide variety of forex, stocks, CFDs, and futures
- Offers a navigable interface with 21 timeframes and 6 pending order types
- Supports robotic and algorithmic trading
- Allows hedging and netting
- Supports 36 technical indicators, 44 analytical objects, and an unlimited number of charts
- Built-in economic calendar for quick access to important news data
- Can be accessed through a web browser, desktop version, or on mobile devices and tablets
When compared to other options out there, MT5 truly offers more services and resources to traders, making it a great tool for success if it is incorporated into your trading routine. If you do plan to use it, you can find many video tutorials on YouTube that will teach you how to use the platform efficiently. The best way to use the MT5 platform is to open an account through a broker that offers it so that you can trade on MT5 for free, as licensing fees can be expensive.
Using Trading Signals
A trading signal is a suggestion to enter a trade that is typically delivered to the trader through a phone or email alert. The suggestions come from expert traders that have personally analyzed the market based on their own ideal sets of data so that you don’t have to. This concept is especially helpful for beginners that may not completely understand the market or for traders that just don’t have the time to sit around analyzing charts and data all day long. Many traders consider signals to be a shortcut to success that takes away from the overall time spent trading, as long as a profitable signal provider has been chosen.
Experts that create trading signals do so to help other traders, but there is usually a cost of these services. Keep in mind that some signals are free, while most cost money, but you shouldn’t blindly trust every signal provider that’s out there because scammers are involved in the market. Before choosing a provider, you should read online reviews about their services and take a look at their overall reputation, especially if it is a paid provider.
One-on-One Training Sessions
Some traders overlook the benefits of personal one-on-one training sessions with professionals for a few different reasons. One of the most common reasons is that these sessions usually cost money, although some brokers will offer you free sessions if you make a large enough deposit with them. It’s true that there are many free resources available online, but you should stop to consider some of the benefits of one-on-one training:
- You’ll be mentored by a veteran trader that knows the market inside and out.
- You can ask personal questions and receive professional-grade advice.
- Your coach will teach you basics, market fundamentals, and everything you need to know.
- Your mentor can suggest profitable trading strategies you might not have heard about once they learn about your personal trading style.
- You’ll learn to use technical indicators and how to effectively analyze the market for trends and directions.
- This is one of the best ways to get hands-on practice in a live market environment.
- You’ll receive tips that can help you to achieve profits on the same level as expert forex traders.
The Bottom Line
If you want to get the same results as a professional trader, you’ll need to trade like one. The three professional-grade strategies we’ve outlined above can help you get off to the right start in the financial markets, as long as you take the time to practice them effectively.