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Trading Stategies

Trading strategies are the use of specific trading techniques to generate profits from the purchase and sale of <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/currency/" class="glossaryLink" data-cmtooltip="<div class=glossaryItemTitle>Currency</div><div class=glossaryItemBody>A currency is a generally accepted medium of exchange that is issued and circulated by the government and the central banks. This can be in the form of coins and paper. Credit /debit cards are considered an advanced form of currency and are generally referred to as plastic money.<br/></div>">currency pairs in the forex market.

Manual or automated tools are used to generate trading signals in forex trading strategies.

A consistent, effective strategy relies on in-depth <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/technical-analysis/" class="glossaryLink" data-cmtooltip="<div class=glossaryItemTitle>Technical Analysis</div><div class=glossaryItemBody>The technical analysis uses tools, technical indicators, formulas, and patterns on charts, in order to predict future trends and changes in currencies. It analyzes the trends and not the reasons why they happen.<br/>Unlike fundamental analysis, which attempts to evaluate a security's value based on business results such as sales and earnings, technical analysis focuses on the study of price and volume. <br/></div>">technical analysis, utilizing charts, indicators, and patterns to predict future price movements.

This page will give you a thorough <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/breakdown/" class="glossaryLink" data-cmtooltip='<div class=glossaryItemTitle>Breakdown</div><div class=glossaryItemBody>A breakdown is a breakout to the downside. A breakdown happens when there is a breakout downward through support. The buyers who used to be at this level are gone, but there is still selling pressure.<br/>Price trades sideways for a while but it is unable to garner the strength to move higher. When this happens, it signals buyer weakness.<br/><figure class="wp-block-image size-large is-style-default"></figure>The price that breaks downwards through a support level is expected to continue to fall. This is considered a sell signal. Especially if the volume is also increasing.<br/>If the price has fallen significantly since the break, a better price can be achieved by waiting for a reaction back.<br/>Please note that price in an uptrend often triggers false sell signals on breakdowns through support.<br/></div>'>breakdown of beginners’ trading strategies, working all the way up to advanced, automated, and even <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/asset/" class="glossaryLink" data-cmtooltip="

Asset
<!-- wp:paragraph -->An asset is an economic resource that can be owned or controlled to return a profit or a future benefit. An asset is anything you own that you expect to make or save you money in the future.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->It can be owned by an individual or an organization. In other words, an asset represents the value of ownership that can be&nbsp;converted into cash.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->In trading, the term asset relates to what is being exchanged on markets, such as stocks, bonds, currencies, or commodities.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->These assets are referred to as “financial assets“.<br/><!-- /wp:paragraph -->

" >asset-specific strategies.

It will also outline some regional differences to be aware of, as well as pointing you in the direction of some useful resources. Ultimately though, you’ll need to find a <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/day-trading/" class="glossaryLink" data-cmtooltip="<div class=glossaryItemTitle>Day Trading</div><div class=glossaryItemBody>Day trading entails opening and closing a position on the same day. Day traders trade on very short-term market movements.<br/></div>">day trading strategy that suits your specific trading style and requirements.

Also, ensure your choice of <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/broker/" class="glossaryLink" data-cmtooltip="

Broker
<!-- wp:paragraph -->The mediator between the buyers and sellers in the market. The broker executes the trader's buy and sells orders and charges the spread as a commission fee. Online&nbsp;Forex brokers&nbsp;enable everyone to easily participate in the market without the necessity to act through banks.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->A broker is a financial intermediary that matches counterparties to a transaction without being a party to it.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->In forex, a broker is an agent or company that executes orders to buy and sell currencies for their clients.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->They act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->Brokers are agents working on commission and not principals acting on their own account.<br/><!-- /wp:paragraph -->

" >broker suits strategy based <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/day-trading/" class="glossaryLink" data-cmtooltip="<div class=glossaryItemTitle>Day Trading</div><div class=glossaryItemBody>Day trading entails opening and closing a position on the same day. Day traders trade on very short-term market movements.<br/></div>">day trading. You will want things like;

  • Excellent trade execution speed,
  • <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/price-action/" class="glossaryLink" data-cmtooltip="<div class=glossaryItemTitle>Price Action</div><div class=glossaryItemBody>In the study of technical analysis, the price action is a trading strategy that includes reading charts, candlesticks, swings (high &amp; low), support, and resistance to predict the future price and trend. It helps traders identify the buy/sell trading levels in order to profit in forex trading.<br/>Price action refers to a financial asset’s price movement.<br/>Rather than using chart pattern recognition or applying technical indicators, which are derived from moves in price and have a natural lag,&nbsp;price action is about getting to the bare bones of trading.<br/>By studying the movement in price over a set period, you get all the information you need to trade trends, breakouts, and swings effectively.<br/>Japanese candlestick charts&nbsp;perhaps the most commonly used form of price action analysis.<br/>Price reacts to all known news, which means that moves in price tell you what the collective view of breaking news is rather than any single individual.<br/>The fundamental belief of price action analysis is that price is never wrong. So if you’re losing money, you are wrong. Your job as a trader is to manage this risk and close the trade.<br/>Learning about risk management is a key step to become a better trader. Not everyone is speculating and reacting to the news. Every day, billions of dollars are transacted through markets by entities that aren’t speculating.<br/>Perhaps it’s an insurance fund rebalancing its portfolios at the end of the month, a central bank managing its currency exposures, or a huge American smartphone company buying camera sensors from Japan in JPY.<br/>Either way, price action looks at all global capital flows at any one time and provides a holistic picture of what the market thinks of the currency pair that’s on your chart.<br/></div>">Price action data ( + Level 2 if possible)
  • Ability to trade direct from graphs,
  • Trade automation,
  • Stop losses and take profit orders
  • Etc etc.

Visit the brokers’ page to ensure you have the right trading partner in your <a aria-describedby="tt" href="https://www.benstride.com/forex-glossary/broker/" class="glossaryLink" data-cmtooltip="

Broker
<!-- wp:paragraph -->The mediator between the buyers and sellers in the market. The broker executes the trader's buy and sells orders and charges the spread as a commission fee. Online&nbsp;Forex brokers&nbsp;enable everyone to easily participate in the market without the necessity to act through banks.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->A broker is a financial intermediary that matches counterparties to a transaction without being a party to it.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->In forex, a broker is an agent or company that executes orders to buy and sell currencies for their clients.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->They act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties.<br/><!-- /wp:paragraph --><!-- wp:paragraph -->Brokers are agents working on commission and not principals acting on their own account.<br/><!-- /wp:paragraph -->

" >broker.