The forex market can be complicated at times. Beginners and experts alike will often find challenges when trying to devise a dependable trading approach. While the trade itself is enticing, the process involved in finding success is not an easy one. With an average market cap of $5.1 trillion per day though, this market is hard to ignore. As a trader, you will grapple with different decisions at every turn in your journey. 

Decisions on the type of trading strategy, information sources to use, and other issues will be constant. The choices you make regarding your trading approach will be crucial. Let us look at some of the trading tactics that have been tested by expert traders and which can guarantee you of great results.

1. Swing Trading

Swing trading is one of the most deployed trading tactics in the market. Traders who use this strategy hold their trades for a long period – usually several days or even weeks. The goal of doing so is to catch the best trading opportunities. Generally, swing traders tend to trade at breakouts and pullbacks. This means that they are used to buying support and selling resistance. To make this strategy work, a trader needs to be well-informed about market forces. The advantage of swing trading is that it can be done as a part-time job. Swing traders are adept at concepts like:

 

• Candlestick patterns

• Moving average indicators

• Support & Resistance 

2. Day Trading

In the forex market, day trading is the exact opposite of swing trading. This is particularly the case when you consider the time involved. Day traders are known to trade on very short time frames. A trader can open and close a trade within minutes. A typical day for a trader in the market involves identifying volatility over various sessions during the day. Since the form of trading is short-term, day traders are not preoccupied with the economy as a whole. Day trading is a great strategy for full-time traders looking to make a good income. The percentage day trading success rate is estimated at 8%. However, it is often a strenuous form of trade that requires patience.

3. Position Trading

This is one of the long-term forex trading strategies. Fundamental analysis is crucial for traders looking to utilize this strategy. The average trading period is several weeks long. Regardless, the daily and weekly timeframes are crucial for the trade. Technical analysis is also needed to identify the specific timelines when the market is ripe for entry. Position traders aim at entering the market at the turn of a new trend. In terms of benefits, position trading is not demanding and there is a considerable margin for profit. On the downside, only traders with enough capital and a proper understanding of the market prevail.

4. Scalping Strategy

Scalping is a short-term strategy that focuses on getting the tiniest rewards. Traders using the scalping strategy will open and close trades very quickly. Typically, several trades can be completed in a minute. The order flow is extensively used in this kind of trading since it compiles orders in the market in a logical fashion. In terms of advantages, the scalping strategy is great for those looking to maximize daily trading opportunities. With up to 80% of traders using robots to trade though, investment costs can go high.

5. Adaptation

Finally, it is possible to develop an adaptation strategy where you change your position rapidly. Traders who have been on the market for a long time often master recurring trends. When you are in this position, you can alter your stop positions to a different time frame. Using the adaptation strategy requires proper insight though as the market can change quickly. The advantage of adapting to the moving market is that you can increase the average gains for a given trading session. On the downside though, the higher risk can also result in huge losses.

Summary

The forex market has many opportunities for budding traders. Success, however, comes only to those that are adequately prepared. A good combination of the right strategy and tools will be crucial. Technology has managed to be a huge part of the industry and the market today sees over 35% of traders conducting searches using mobile phones. The trading strategy you choose should thus be considered within the context of the trading tools of your choice.