Ways To Trade In Forex

If you find yourself searching for how to trade in Forex it is quite clear that you are at the start of your journey and have a long but potentially rewarding road ahead of you. At this stage, it is key that you make the right choices in deciding how to trade in Forex. The wrong choices can see you wasting time and ultimately losing money, it is also far harder to “un learn” the wrong things once you have started to ingrain them in your mind.

Options For How To Trade In Forex

Fundamental Strategies

Fundamental trading involves the tracking and analysis of economic indicators with a view to establishing a directional bias on a currency based on the strength of the underlying economy. Typically, these strategies are applied by more advanced traders as the method can be quite complex. However, many traders benefit from gaining an overview on fundamental inputs even if just with a view to risk management such as being aware of key market moving events.

Technical Strategies

Arguably the most popular choice for how to trade in forex, technical strategies involve the study of price charts with a view to identifying potential opportunities based on price movements.  These strategies can involve raw price action reading as well as technical elements such as trend lines, support and resistance, Fibonacci analysis and also the use of technical indicators such as RI, stochastics, moving averages and others.

The beauty of using purely technical strategies is that for most traders it is far simpler than learning to understand and interpret various economic data points and how central bank sentiment influences currency rates.  Technical strategies can also be combined with fundamentals to provide a fuller analysis of a currency and confluent trading opportunities such as looking for technical selling opportunities on the back of weak data/ Dovish central bank meeting.

Swing Strategies

Swing strategies refer to longer term trades which are typically held anywhere between a few hours and a few days. These trades are placed based off analysis conducted on the higher time frames such as the weekly, daily and H4 charts. Typically, these strategies will have a much lower frequency but also much bigger targets (as well as stops). This type of approach is best suited to those who, due to time constraints or personal preferences, prefer to limit their time spent in front of the screens and are just looking to “set and forget” trades.

Scalping Strategies

Scalping strategies are the opposite of swing strategies are much higher frequency, shorter duration trades which can last anywhere between a few seconds and a few minutes. Typically trades look to target very specific current moves which may be limited to just a few pips. These strategies are more suited to those who prefer a more active approach to the market and have the time to spend engaging the market on a daily basis during their designated trading hours.

Methods For Learning How To Trade In Forex

For traders at the start of their journey it is also important to consider how they will learn their chose forex trading techniques.

Forex Trading Courses

For traders who prefer independent study which allow them to study at their own pace, then a forex trading course is the best solution. A thorough, high quality course which provides full coverage of the learning materials needed to trade forex, including full trading strategies, can be a fantastic option.

The Littlefish FX Forex Trading Course contains 24 chapters of carefully curated material designed to give a ground up education in forex trading from the very basics of introductory fundamentals right through to advanced technical trading strategies including detailed trading plans. The course also comes with our full suite of proprietary indicators worth over £2500.

Mentoring

For traders who prefer a more interactive learning experience and find that they learn most efficiently when guided by a teacher, then mentoring sessions are the best option. Mentoring sessions provide an interactive learning environment in which the pupil, guided by a professional trader, can learn the exact methods and approaches for consistent profitability when trading. This option typically leads to quicker success in Forex trading.

We recently launched the Littlefish FX Pro Trader Package which is designed to cater for traders who want to learn the precise methods used in delivering our consistently profitable daily forex trade alerts. Members will have access to a live weekly strategy session alongside the daily forex trader alerts.  The sessions will cover setups for the week ahead, review of prior week’s performance, discussion of strategy and tactics as well as open Q&A.

As you can see, there are a wide range of options to be considered when deciding how to trade in forex and learning how to trade in forex. It is important to properly consider all important factors early on in your journey to limit wasted time and wasted capital.