Two Key Forex Strategies That Will Bring You Income
It is not easy to trade on foreign exchange market without losing a lot of money. You learn, train, buy automated Forex trading systems and still don’t seem to make a lot of profit. What you need is a good strategy you can use to trade successfully. There are many strategies you can apply, but some of them are some of the most effective and a lot of people have made good money using them. Take a look at the following two strategies, which you can use or incorporate into your strategy and even a beginner trader can learn from them.
The first Forex trading strategy is the 4 week rule. This strategy was developed by one of the most successful and influential traders Richard Donchian. This strategy is a one rule system, which works by spotting and then holding on to long-term trends. The only rule this strategy has is to buy a 4 week high and hold on to it. Then you should look for 4 week low, get rid of the long and go short. It is very simple and still it works. This strategy requires a trader to be disciplined but it is been effectively making profit for traders for about 30 years now and it will be effective as long as there are trends in market. You may also use the exit filter to reduce the equity curve, but it still works. You will see it works, if you test it for yourself.
Second strategy is the turtle trading rules. It was developed by another great trader and a follower of the 4 week rule as well, Richard Dennis. He discovered a new breakout trading methodology which brings high profits. And even new traders, after learning this strategy, ended up making huge gains just after few years using it. This strategy is a little more complicated than 4 week rule method, even though it is not as effective, but it still helps traders make lots of money. This strategy is good for any trader to learn even just for learning the rules of money management. It has good basics and you should look it up, if you plan on trading Forex seriously.
These both trading strategies are good to know for a new trader. They have a lot of advantages. These systems are free and still effective. Many traders, who used these strategies, managed to make huge profits in Forex trading. So, just studying them, you lose nothing, but get new Forex trading knowledge, which will help you anyway. Even if you don’t necessarily use these exact strategies, you will be able to incorporate some parts of the strategies into your own trading system and make huge gains out of it.
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Tags: Currency Trading, Forex