Plunging into a trading business without special techniques or strategies is impossible. It can also be like you take the exam without any prior preparation. Instead of getting good grades, maybe even you will not even pass at all.
Techniques and strategies in forex trading are two things you should not forget to be able to achieve the goal of profit. You may be able to trade without special techniques or strategies, but it is very difficult. A trader who has been struggling in this business for many years with special techniques or strategies still often experience loss, what if done without special technique?
Speaking of techniques or strategies, of course in forex trading there are many trading techniques that you can choose. Even so many, not a few traders who changed quickly to finally often trading changed techniques. Is this wrong? Certainly is not. Determining the right trading techniques for your trading is a reasonable and must be done. If you do not want to try to use some techniques, then you will not be able to know which trading techniques are really appropriate. But if you have found the appropriate technique, try not to change techniques, because this will hurt yourself. If you are still doing a change of technique every time, then you can say you are not a consistent trader.
Here are some techniques in forex trading that you can choose to establish the techniques you use.
Scalping Trading Technique
Scalping is one of the techniques in forex trading that utilizes small profits on an ongoing basis. This technique is commonly used when the market is in an ordinary condition. Unfortunately, trading scalping techniques often use large stop losses, so rewards and risk are unbalanced.
Technical Trading Martingale
The next technique is martingale. Martingale is a Forex Trading technique that utilizes volume lot folds. For example, if you are trading with 2 lots, then when you lose, the lot will be doubled to 4 lots, 16 lots, and so on until you get profit. This technique you can apply if you have a strong capital. It’s just that, if there is a risk error that must be borne is also high.
Averaging Trading Technique
Next there is averaging technique. Averaging is a forex trading technique that utilizes the average price as a calculation. Let’s say you open trading at the price of 100, and when the price drops to 70 then you have to buy again. If the price is still down you still have to do Buy until it reaches good price. Just like the martingale technique, averaging also requires substantial capital.
Trading Hedging Technique
Trading Hedging is a technique that utilizes locking position. Many say if this technique is quite difficult to do. If you are not careful to apply it, the technique may be detrimental to the trader itself.
Analytical Trading Techniques (Technical and Fundamental)
Lastly there is Analytical Technique. Analytical technique is a basic technique that must be mastered by every trader, both beginner and professional trader before starting forex trading. The successful use of analytical techniques will depend on analytical skills, logical skills, and carefulness in the observation of the trader itself.