The global Forex trading system has been in operation for over 40 years, but it has not stopped being one of the most important currency exchanges. Both beginners and experienced investors and traders must master the basic principles of Forex operations perfectly if they want to be successful and get the best benefits. Every day, 6-7 trillion dollars worth of transactions pass through the Forex market. Explore the base of Forex trading strategies and discover how to use them to reach your personal financial goals.

Forex Exchange Schedule

Trading timing plays an important role in organising functions and currency transactions. The universality of Forex exchange conquers investors by the fact that access to operations is possible 24 hours a day for 5 working days. At any of these times, the options to open and close deals are open to users. Flexible Forex Trading Hours vary depending on the part of the globe. For maximum convenience and to ensure continuity of processes, trading is divided into 4 main sessions: 

  • Pacific (Sydney 22:00 GMT)
  • Asian (Tokyo 00:00 GMT)
  • European (London 08:00 GMT)
  • American (New York 13:00 GMT)

The opening schedule of continental trading directly affects the optimal selection and implementation of strategies, currency liquidity and price movements.

Understanding Forex Trading Strategies

There are different levels of players in Forex. Large corporations, banks and government financial structures are the guiding forces behind the market movements. Brokers and experienced traders have their unique working strategies of operations, which they formed from their experience. Forex Academy recommends using several ready-made methods of trading on the exchange, which, if used wisely, will bring positive results:

Trend Following Strategy

A successful strategy of analyzing market movements and following the up or down trends. Technical trading indicators help to identify the leading trends and follow them. Requires constant monitoring of changes and quick decision-making. Readiness to quickly enter or exit a deal and use risk management tools.

Breakout Strategy

This type of trading involves identifying key support and resistance levels and placing trades when the price breaks these levels. These signs demonstrate significant changes in market moods and lead to rapid price action. Requires specialized knowledge and skills in identifying support and resistance levels.

Range Trading Strategy

When the currency is stable in a phase of absolute calm, it is possible to identify the upper and lower points and trade within these levels. The range will not bring big and fast profits, but it is less risky.

Carry Trade Strategy

Involvement of operations with currency pairs, where one unit has a low interest rate and the second one has a high interest rate. Profit from the difference will depend on how successfully the economic factors and bank policies that determine interest rates on currencies have been analyzed.

News Trading Strategy

One of the risky Forex strategies involves entering trades that are directly influenced by significant economic news. Changes in global financial markets, business processes and major corporate transactions are directly reflected in currency changes, which can be successfully used to predict the reaction of currency prices.

 Strategy Adapting and Evolving

The next step after studying possible trading strategies will be to adapt and include the techniques in real operations on Forex Exchanges. To successfully develop a trading strategy it is important to go through several steps:

  1. Analyze the productivity and evaluate the expected results
  2. Conduct maximum adaptation of the methodology to the current market conditions
  3. Supplement with new AI analysis tools prepared algorithms and new combinations
  4. Apply different techniques for analyzing economic indicators: technical, fundamental, combined
  5. Do not skip the strategy testing stage, using demo accounts without risks of losses
  6. Set stop-loss and take-profit levels to minimize losses and lock in profits
  7. Use investment diversification techniques to reduce overall risks

Conclusion

The Forex Market as one of the largest foreign exchange market systems of the 21st century deserves maximum attention and involvement. Learning effective tools and trading strategies gives investors many new opportunities to make profits. But still, such a global system requires constant study, analysis and testing of new techniques in search of the most effective way to make beneficial trades. Using ready-made strategies, beginners explore the main forex options and find personalized ways to become an advanced forex trader.