2 easy-to-follow FX Trading Strategies – Trend and Range Trading
When trading using FX, the amount of liquidity and low transaction costs are among the major benefits that you can enjoy. The fact that you can trade for 24-hours each day means that you are able to adopt and apply several types of strategies in your trading.
While trading forex using FX, you are able to use many different styles and methods and below are 2 very simple and easy-to-follow strategies.
The first is called Range Trading. This is where the trader will buy a currency which is in the market, hoping that the return is a longer-term average of the valuation. It is somewhat similar to value investing where the aim is to first identify the price points that you are interested in. This is where you want to enter the market at the point where the sellers stop selling and buying of the currency is starting to develop.
You will have to identify the levels of supply and demand before obtaining the price point that you favour. This is usually carried out using the very common technical analysis method.
Another strategy is known as Trend Trading. This is one strategy which is very popular among new traders while experienced ones tend to use Trend Trading as they are easy. In this strategy, you have to first identify the direction of the prices of the currency which is moving in the market. From there, you will place your trades in the same movement mainly because when it is a ‘trend’, it is supposed to produce very significant results.