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Thursday, January 28, 2010

The Best Forex Strategy for Consistent Profits

Some traders prefer the monthly, weekly or daily trade forex strategy. Others consider that the best forex strategy is the intraday trading, and probably none of them is the absolute best.

In reality, there can be profits in any forex strategy as long as you are well aware of the market movers and signals at any given time, and you have a clear understanding of all the elements that support your forex strategy.

Some traders base their forex strategy in long term investments (monthly or weekly positions), while others will build their forex strategy around daily or intradaily positions that might be open no longer than a few hours or even minutes (this traders are known as scalpers).

A long term forex strategy will probably earn you 100 or 200 pips in one trade, but that is probably all you will gain within a month or a week if your forex strategy gravitates around monthly or weekly positions, But on the other hand, a well carried scalping forex strategy can deliver many little 10 or 20 pip trades during a day, meaning that maybe you can total anything between 80 to 160 pips in one day using this forex strategy.

The intraday forex strategy benefits from the fact that the forex market, whether moving up or down within any particular currency pair, will always make small fluctuations that you can profit from using an intraday forex strategy.

Which forex strategy is best for you will depend greatly on your personal investment and risk management style, and also on how much time you can dedicate during the day in order to follow the market trends and spot the right entry points for a profitable trade.

I prefer the intraday forex strategy because of its profitability and because frankly I have some time to spare, but mostly because I have the assistance of a software I discovered a while ago, which places trades by itself based on the market trends occurring both during the day an during the night.

So even when if am not in front of my pc, I can go on trading all day and all night, profiting from of every little window of opportunity to scalp a few pips out of the market. With this approach, my intraday forex strategy delivers about 120 pips daily, which in my particular case means I earn about $3,000 per month with a 5,000 investment.

So the intraday forex strategy can indeed be the most profitable one, but it will demand that you stay very attentive at what is going on within the market on a minute by minute basis, unless of course you have a software that stays on guard while you are busy with your job or anything else that might keep you from continuously analyzing the market trends.

If you are wondering about the software I use to help me with my intraday forex strategy, I will only tell you that it does work and that its called the FAPS.

1 comment:

  1. I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.
    Regards
    trade4target

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