Successful trading strategies alarming techniques
If you’re interested in trading forex in Malaysia, you would have noticed there are many educators and seminars you can attend teaching you how to trade forex – these courses range from MYR3,000 to MYR10,000. However, we’d like you to know that it doesn’t take such huge investments to begin your journey into forex trading. Our team of experts has prepared an article for you to begin your journey into the amazing world of forex trading. Successful trading strategies alarming techniques
In this article, you’ll learn successful forex trading strategies from experts who advise the trading desks of the largest banks and hedge funds in the year, including being a finalist in The Technical Analyst Award in 2019. The minds that put together this article are CMT (Chartered Market Technical), CFTe (Chartered Financial Technician) and CFA (Chartered Financial Analyst) qualified and their pedigree comes from the largest and most successful trading firms.
In the strategies below, we list 3 strategies that when combined, provide a really successful forex trading strategy. They can be used by themselves, although their strength comes when used in conjunction with each other. Successful trading strategies alarming techniques
There are many ways to draw support and resistance lines. Personally, we prefer to draw horizontal lines vs diagonal lines. The reason for this is that diagonal lines are much more subjective than horizontal lines. Remember – how strong a support/resistance line is determined by how many people are looking at the same level. So different brokers have different price feeds – how does this affect the accuracy of horizontal lines and diagonal lines?
Diagonal support by broker #1:
Notice that right now, it shows that the price is right on support and we should be expecting a bounce. This is determined by the spikes of each candle that has bounced off the ascending diagonal support line as pointed out by the arrows.
Now, what if the spikes are just slightly higher/lower by a small margin? Here’s the price feed of another big broker:
Diagonal support by broker #2:
Notice that there are only 2 bounces vs 3 on the first broker? And now the ascending support line is not saying that the price will make the bounce anymore. In fact, the price is a bit far from the ascending support and we shouldn’t be expecting a bounce yet.
This is a result of different price feeds leading to different interpretations.
Verdict: Diagonal support/resistance lines are not reliable for accurate position entries. Instead, they are better used to gauge the momentum of the market (higher lows = bullish momentum = better for buy entries). Successful trading strategies alarming techniques
So.. Horizontal support/resistance lines are better?
Yes, they are. There are 3 ways to accurately identify horizontal support/resistance lines. The trick is in the filtering. If you don’t filter your lines, you’ll end up with something like this:
That’s a lot of support/resistance lines and imagine if a strategy is “buy on support, sell on resistance”. You’ll end up losing a lot of money.
So, how do I filter these? This is where our 3 strategies for picking the best support/resistance levels come into play.
Strategy 1: Multiple Swing Low/High Support
One trick is to look for a horizontal level that has prices reacting multiple times. In the picture below, we can see that price has already reacted off 3 times at this key level. So now that price is approaching it a 4th time, what is likely going to happen?
The more times the price reacts off a certain level, the stronger that level is. So in the picture below, we can see that price indeed reacts off that strong resistance level and drops strongly.
The rule of thumb is to at least wait for 3 swing highs or swing lows to line up nicely before taking a trade on the 4th time price touches the horizontal support/resistance level.
Strategy 2: Hidden Stochastic Support
Now there’s a popular indicator being used to trade bounces and reactions – and that’s the Stochastic Oscillator indicator. What many people don’t know is that the standard 20% support and 80% resistance lines are actually lies told to the public. There are actually hidden support/resistance levels for every stochastic indicator.
Remember the trade we described above? On top of using multiple swing high resistance levels to take trades, you can load up a Stochastic oscillator and see if there is a hidden resistance level.
We have drawn the “fake” Stochastic oscillator setting of 80% in orange. If you had used that level, you would have missed every single reaction. But if you used 94.15% (the hidden level in this example), you would have got every single trade spot on.
Each market would have a different hidden setting. So you’ll need to draw horizontal lines as we did and see where prices are reacting to find the hidden resistance level on the Stochastic oscillator. Once you find that, and you combine it with the 1st strategy of finding horizontal levels with multiple swing highs/lows, you’re on to a very strong trading strategy. Successful trading strategies alarming techniques
Strategy 3: Hidden RSI Support/Resistance
One of the most popular indicators is the RSI indicator. The default setting many people use is 30% as support and 70% as resistance. Similar to the Stochastic indicator above, there are many hidden levels of support and resistance you can consider which will give you an advantage.
In the example above, we can see that the price tends to react very nicely each time RSI hits the 61.8% resistance level. This is not the 70% that most people highlight. If we had waited for 70% resistance, we would have missed almost every one of these moves.
By itself, this hidden RSI resistance is a fantastic strategy to use. However, when combined with Strategy 1 (multiple swing high/low) and Strategy 2 (hidden Stochastic support/resistance), it provides a really high probability trading setup.
In the world of trading, it’s important to surround yourself with people. Not normal people, but experts who can guide you on your trading journey and constantly ensure you are aligned correctly. Asking questions can lead you down the wrong path if the wrong people answer you – which is why it’s important to exercise discretion and pick the correct trading communities.
Weakest but Valuable currencies 2024
Forex has a really good and exclusive trading group, however, you’ll need to have an account to qualify for entry – you know what they say, good things don’t come easy. We run competitions, have constant market updates and it is actually one of the few places where you can engage with really top-notch analysts and traders there 24/5 around the clock.
Go check it out here: https://www.facebook.com/groups/thetradingcircle/
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Title: 3 Successful Forex Trading Strategies for Traders in Malaysia
Introduction:
In the world of finance, Forex trading has gained immense popularity as a lucrative venture for individuals looking to trade and profit from currency exchanges. Traders in Malaysia are actively participating in the Forex market, seeking strategies that can help them navigate the complex world of trading successfully. In this comprehensive guide, we will delve into three proven Forex trading strategies tailored for traders in Malaysia to enhance their trading experience and potentially increase their profits.
Heading 1: Understanding Forex Trading in Malaysia
Forex trading, or foreign exchange trading, involves the buying and selling of currencies on the foreign exchange market. In Malaysia, Forex trading is legal and regulated by the Securities Commission Malaysia (SCM). Traders can access the global Forex market through online platforms and brokers, allowing them to speculate on the rise and fall of currency pairs.
Heading 2: Importance of Forex Trading Strategies
Successful Forex trading requires more than just luck; it demands a strategic approach backed by sound knowledge and analysis. Forex trading strategies are essential tools that help traders make informed decisions, manage risks, and optimize their trading performance. By employing proven strategies, traders in Malaysia can enhance their chances of success in the Forex market.
Heading 3: Strategy 1 – Trend Following
One of the most popular Forex trading strategies is trend following, where traders identify and follow the prevailing trends in the market. By analyzing price charts and technical indicators, traders can spot upward or downward trends in currency pairs and enter positions that align with the trend’s direction. Trend following strategies capitalize on the principle that trends tend to persist over time, allowing traders to ride the wave and maximize profits.
Heading 4: Strategy 2 – Range Trading
Range trading is another effective strategy for Forex traders in Malaysia, especially in volatile or sideways markets. This strategy involves identifying price ranges or support and resistance levels within which a currency pair fluctuates. Traders can buy at the bottom of the range and sell at the top, profiting from the price movements within the established range. Range trading requires patience and discipline but can be highly lucrative when executed correctly.
Heading 5: Strategy 3 – Fundamental Analysis
Fundamental analysis plays a crucial role in Forex trading, especially for traders in Malaysia looking to understand the economic factors that influence currency movements. This strategy involves analyzing economic indicators, central bank decisions, geopolitical events, and market news to anticipate how these factors may impact currency values. By staying informed and interpreting fundamental data accurately, traders can make strategic trading decisions based on the underlying drivers of the market.
Heading 6: Combining Strategies for Success
While each Forex trading strategy has its merits, combining multiple strategies can enhance a trader’s overall performance and resilience in the market. By diversifying their trading approach and adapting to different market conditions, traders in Malaysia can mitigate risks and optimize their profit potential. For example, combining trend following with fundamental analysis can provide a comprehensive view of the market and help traders make informed decisions.
Heading 7: Risk Management in Forex Trading
Risk management is a critical aspect of successful Forex trading, especially for traders in Malaysia aiming to protect their capital and minimize losses. Implementing risk management techniques such as setting stop-loss orders, using proper position sizing, and diversifying investments can help traders safeguard their funds and trade responsibly. By managing risk effectively, traders can sustain their trading activities in the long term and weather market uncertainties.
Heading 8: Utilizing Technology for Trading Efficiency
In the digital age, technology plays a pivotal role in Forex trading, empowering traders in Malaysia to access real-time market data, execute trades swiftly, and utilize advanced trading tools. Leveraging trading platforms, technical analysis software, and mobile trading apps can enhance trading efficiency and effectiveness. Additionally, automated trading systems like Expert Advisors (EAs) can execute trades based on predefined criteria, enabling traders to capitalize on opportunities even in their absence.
Heading 9: Educational Resources for Forex Traders
Continuous learning and skill development are essential for Forex traders in Malaysia to stay informed, sharpen their trading acumen, and adapt to evolving market trends. Utilizing educational resources such as online courses, webinars, trading books, and demo accounts can help traders enhance their knowledge, practice different strategies, and refine their trading skills. Staying curious and proactive in learning can set traders apart and empower them to make informed trading decisions.
Heading 10: Conclusion
In conclusion, Forex trading offers abundant opportunities for traders in Malaysia to profit from the dynamic currency markets. By implementing proven strategies such as trend following, range trading, and fundamental analysis, traders can enhance their trading prowess, manage risks effectively, and strive for consistent profitability. Embracing technology, practicing risk management, and committing to continuous learning are key pillars of success for Forex traders in Malaysia. With dedication, discipline, and a strategic mindset, traders can navigate the complexities of Forex trading and work towards achieving their financial goals in the exciting world of currency trading.
## Forex Trading Strategies for Traders: A Comprehensive Guide
In the world of **Forex trading**, success hinges on the implementation of effective **trading strategies**. Whether you are a novice or seasoned trader, having a well-thought-out **trading plan** is paramount to achieving your financial goals. In this article, we will delve into **Forex trading strategies** that can empower traders to navigate the dynamic **foreign exchange market** effectively.
### Understanding Forex Trading
**Forex**, also known as the foreign exchange market, is the largest financial market globally, where **currencies** are bought and sold. Trading in the **Forex** market involves predicting the price movements of currency pairs, such as **EUR/USD** or **GBP/JPY**, and profiting from these fluctuations.
### Importance of Forex Trading Strategies
Creating and adhering to **Forex trading strategies** is crucial for traders to manage risk, optimize profits, and make informed decisions. A well-defined **trading strategy** provides a roadmap for executing trades based on thorough analysis rather than emotions.
### Key Forex Trading Strategies
1. **Technical Analysis**: This strategy involves analyzing historical price data and **chart patterns** to forecast future price movements. Traders use **indicators** like moving averages and **RSI** to identify trends and entry/exit points.
2. **Fundamental Analysis**: Traders using this strategy assess economic indicators, geopolitical events, and market news to anticipate currency movements. Factors like **interest rates** and **GDP** can significantly impact currency values.
3. **Risk Management**: Proper **risk management** is essential in **Forex trading**. Strategies like setting **stop-loss orders** and **position sizing** help mitigate losses and protect capital.
4. **Swing Trading**: This strategy involves holding positions for several days to weeks to capitalize on short to medium-term price movements. Traders rely on technical analysis and market trends to make informed decisions.
5. **Day Trading**: Day traders execute multiple trades within a day and close all positions before the market closes. This strategy requires quick decision-making, technical skills, and discipline.
6. **Trend Following**: Traders following this strategy aim to profit from **long-term trends** in currency prices. They enter trades in the direction of the prevailing trend and exit when it shows signs of reversal.
### Implementing Forex Trading Strategies
Successful **Forex traders** combine various strategies based on their trading style, risk tolerance, and market conditions. It is essential to backtest strategies, maintain discipline, and continuously refine your approach based on performance.
### Conclusion
In conclusion, mastering **Forex trading strategies** is a continuous learning process that requires dedication, discipline, and adaptability. By incorporating a blend of **technical**, **fundamental**, and **risk management** strategies, traders can enhance their chances of success in the challenging yet rewarding world of **Forex trading**. Stay informed, stay disciplined, and stay ahead in the dynamic **Forex market**. Happy trading!