Basic methods of Forex trading

      In this article we will discuss possible methods of trading Forex. It is a question of methods in general, not tactics or trading strategies (trend-following, swing trading, etc.).
      The easiest and most obvious way to trade Forex is to trade on your own as an independent trader.
      The method is simple to understand but not to profit. It requires good trading skills, which include knowledge of the trading terminal, the ability to conduct market analysis, precise adherence to the rules of the trading strategy, i.e. strict discipline and much more.
      The advantages of this method of Forex trading are clear - you are working for yourself. The disadvantages are obvious - time consuming, high risks, and high emotional load.
      But this traditional way of trading is not the only one possible.
      Some ways to earn on Forex
      The variant of this self-trading is not exactly self-trading. To be more precise, trading "copying" or copying trades of successful peers.
      Terminals have a function to copy trades of other traders. That is, an experienced trader opens a position, and your terminal follows his actions. Of course, it's easier, but it all depends on the success of the deals of the selected trader. It is difficult to find a real professional in the huge number of signal providers, so this method of Forex trading is as unprotected from losses as the first method we have discussed.
      There is an even more radical way to simplify it - trust management. In this case the trading terminal is only needed to receive information on trading, while the trading is performed by the manager that you select. You entrust him your money, and he trades on it. Profits are usually split 50/50. Again, your money depends on the skill and integrity of the other trader. But all the responsibility is on him. But here too there is one big disadvantage. If the profit is split 50/50, then the losses usually remain solely with the account owner. Usually, after a critical drawdown or a completely lost deposit, compensation for losses is limited to the phrase: "you understand, brother....".
      Instead of self-trading, you can use automated trading. It is carried out with the help of special programs, i.e. advisors, which fully substitute a trader, automatically conducting transactions according to predetermined algorithms.
      Advantages of this method are clear - a person interferes in the process minimally. Disadvantages are less obvious. They include the risk of technical failure and risk of program error. Both lead to losses.
      Of course, it is better to learn to trade on your own. Experience is experience, and as they say, you cannot sell or sell it away. But if you cannot do it yourself, you can try other ways of forex trading. The important thing to remember is that trading on financial markets is always a risk, and even the best trader cannot be secured from losses. Another thing is that their profit far outweighs their loss.

Copyright © All rights reserved.