Forex Trading Strategies

If you are new to forex trading or are looking to set up an account at an fx platform, you will find reading through these forex trading strategy articles interesting and useful.

About FX Trading

FX trading has grown in popularity massively in recent years.  The Bank for International Settlements has estimated that forex markets account for around $3.98 trillion in daily turnover, which represents 20% growth over the previous year.  The majority of this growth has not just come from hedge funds and money managers, but also high volume trading individuals who have looked to the forex markets to supplement their existing investment asset classes.

The biggest advantage of trading on forex is the massive margins, tight spreads and liquidity of the markets, however if you have never traded before than you should find the fx articles below quite useful.

About Trading on the FX markets

Depending on which particular currencies you specialise in trading with, along with your trading volume and experience, you may wish to choose different types of strategies to speculate on forex with.

The majority of trades (70%+) made on forex by positional traders are spot transactions, currency swaps and options/futures contracts.  However when you begin speculating on the market you can either do so through by trading on fundamentals or through technical analysis, studying charts, data and identifying trends lines such as support/resistance levels or using long wicks in candle stick charts to make money.  If you are risk-loving and your fx platform allows you to do so, you may even want to research using forex bots to make automated transactions and money for you.  Forex bots are illegal on most platforms as far as I am aware, however bots such as Forex tunnel and megazoid still exist and lots of regular fx traders make money from them.

Using Demo FX Accounts

If you are at the other side of the spectrum and are completely new to fx trading, than it is strongly recommended that you open a demo account at an fx platform that provides this feature.  Demo fx accounts allow you to play around with pretend money (e.g. $10,000) and invest it in the forex markets however you want.  You can analyse your different positions, gain experience using candle stick charts and automated features such as trailing losses and stop-losses to minimise your risks, or analyse currency pairings and updates, all without having to risk anything.  When you feel you are finally ready to start trading with real money, all you have to do upgrade your account by making a deposit.

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