Forex trading is seemingly a very popular choice among all who plan to invest their money for sure-shot profit. But in reality, the forex industry is very tricky and it takes a great deal of time, planning as well as discipline to make profits.
While there is nothing called guaranteed profit in the business of trading foreign currencies, the broker reviews can help you go a long way with business planning tactics.
The business strategy that suits you best will depend largely on your daily schedule of trading. You must be able to change and mould them as per your needs and style of carrying out trade activities.
The different kinds of strategies
There are three major categories of forex trading strategies. Let us take a look at them quickly.
- Fundamental forex strategies
The dynamics of the forex trading industry depends largely on various fundamental factors like macroeconomics and interest rates. The fundamental strategy depends on all items that have been traded. This kind of strategy comes under the carry trade strategy, news trading strategy and Wednesday AUD/JPY strategy.
- Indicator strategies
This kind of strategy is based entirely on the forex charts. Anyone who has access to the char indicator software can easily use this strategy effectively. This type of strategy typically comes under the parabolic SAR strategy, MACD divergence forex strategy, combined stochastic oscillator strategy and others.
- Price action strategies
Unlike the indicator strategy, this one does not depend on the forex chart indicators. This kind of strategy is totally based on the action of the price. All traders who wish to carry on trading in foreign currency for the short as well as long term adopt this technique of creating business plans.
It is worthwhile to mention here that success of all these strategies depends on the forex broker you choose. And in order to select the best forex broker, you must read the expert reviews.