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Methods of trading on Forex

Methods of trading on Forex 

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of trading on ForexMethods of trading on ForexEach trader is unique and the style of his trade depends only on his personal preferences, on his relationship to money and on the place in his life for the money. And nevertheless, it is possible to distinguish some methods of trading on forex, which are followed by the most part of traders.For example, distinguish:o Technical methods Scalping method Trade on inter-market spreads Trading on impulses Trade in arbitration Automated Trading

The choice of one of the methods, as a rule, depends on the market on which the trade is conducted, as well as on the subject of trade (currency or commodity). Let’s analyze these methods of trading in forex in more detail.1. The technical method provides for a quick profit. It includes the study of trading volumes and price movements, an assessment of the history of the company (when it comes to stock trading), the analysis of price movements and graphs, predicts the behavior of shares in the future based on trade models in the past. Out of the shortcomings of the method, there is a lack of an ideal indicator for each market instrument, the availability of many technical indicators.2. The method of scalping consists in numerous purchases and sales of a market instrument within one day, with a small profit. As a result, this method just gives you an opportunity to get a significant profit. Experienced traders, including the Russian guru of forex Alexander Gerchik, calls this method quite safe, as it brings little losses.3. Trade on the inter-market spread. In this case, the trader opens a long position on one trading instrument and a short one on the other (these tools are closely interrelated). The purchase and sale of such tools successfully use the correlation between them. This is a complicated method of execution, which requires conducting transactions on different exchanges.4. Trade on impulses requires the trader the simplest analytical skills. The principle of the method is that the rising market instrument will continue to grow in value, while the falling one will continue to fall. Traders are guided by dynamic indicators. This method is more often used by active and risky traders.5. Trade in arbitration is also called “risk-free profit” among traders. In this case, at the same time, the purchase and sale of the market instrument are made, and the profit is received from the differential at the price. Most often this method is used when trading on different trading floors or exchanges. The method is successfully practiced in low liquid markets.6. Automated trade is trading with the help of a trading system (advisor). Such programs check the market in an automatic mode in the search for transactions that meet the conditions and rules set by the trader. If such transactions are found, then they are committed automatically

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