Forex market is a huge market so there are numerous ways of doing trading in this market. Different traders use various types of strategies to generate money through trades. However, there are two main types of traders that are present in numbers in the Forex market.
1. Hunter Forex Trader
The traders who are constantly looking out for hunting the trades are called Hunter Forex traders. These traders are quite desperate in searching and hunting for the trades. In this way, these traders make a number of mistakes.
There are some hunters that hunt on their own while others do their hunt in groups. From time to time, because of tensions and emotions, these traders trades that may point out buy or sell signals. In the hunting Forex trading method, the traders are always in search of trades. This method is not systematic at all due to which the traders have to face loss.
2. The Trap Layer Forex Trader
The trader who follows the Naked Price Action methodology is known as a trap layer Forex trader. This trader comes to the hunt in a completely different way. This trader lays down the traps and then waits for the prey to come.
These traps are known as resistance and support. As a trap layer Forex trader, the support and resistance traps must be placed in a good manner where the market has constantly place high probability trades. This trading system is quite systematic. The best part about this trading method is that the trader does not have to go out for hunting the trades.
Types of Forex Strategies
There are many Forex strategies that are followed by different traders whether hunters or trap layers. Have a look at the main types of strategies used in Forex:
1. Trend Trading Strategy
This strategy utilizes an oscillator and a moving average. The main reason to use this technique is to make certain that the trades are entered in the trend.
2. Range Trading Strategy
This strategy employs one or more than one oscillators. In this strategy, the trader would have to locate the fixed stop loss and take the profit levels.
3. Counter Trend Trading Strategy
In this strategy, the traders have to encounter the trading concepts. However, it is quite risky because the positions are taken adjacent to the current trend.
Trading Strategies That Work
When we discuss the best Forex trading strategy then there is not a specific and single answer. You have to consider your individuality and have to find that which strategy suits you best. There are some strategies that work for some and not for others. Thus, the evaluation would be needed to find the Forex trading strategies that work for you.
Best Forex Strategy In The World
There are many traders who ask a question that “which type of Forex strategy that is best in the world?” Well, the answer to this question is that “horizontal levels and price action”. This technique is known as the best one as it suits all.