You’d be surprised how many people you know are earning money trading foreign exchange (forex) online. And the good news is – you can too. In this article, we will explore 3 tried and true forex trading strategies that can reward you with up to $15,000 per month – even if you’ve never traded before.
Long-term forex trading is not as hard as you may think. All it involves is identifying a trend (uptrend or downtrend) and following it for a duration of time. It’s an easy practice you can run with for years.
Some traders track the same trend for over 10 years, changing direction only when the profits get lower.
When you apply long-term forex trading methods, you simply BUY on market expectations and SELL based on financial facts (the best example is George Soros’ greatest currency trades in history against the GBP).
Now that you’ve decided to commit to a stable long-term forex trading portfolio, let’s start with the basics:
What is Long-term Forex Trading?
Long-term forex trading (or any long-term trading for that matter) is a trading style first adopted by the banking industry. Today, ordinary people can detect a long-lasting trend and capitalize on this unique method of trading – all that’s needed is an internet connection.
The methodology is straightforward: You hold the position longer, raking in profits, and enduring small losses. Once the profits and the losses are almost equal – you close the position. Long-term trading is popular because it’s a touch-and-go approach that allows you to seize lucrative opportunities monthly, and even weekly.
Now, let’s go over the most popular (and lucrative) long-term forex trading strategies our PROs use themselves. Pick a plan, commit to it, and the cash gains will follow.
Strategy #1: Ride the Trend
The best advice all professional long-term forex traders agree in is: Nothing is more important than detecting the trends.
You can’t foresee the future, right? So don’t waste your time trying to predict where the price will go next. Instead, focus on spotting the trends. Look for a new high or low (a price increase or decrease of at least 3 pips). Mark it – you just detected a new trend. This is exactly where you open a position.
Many investors fool themselves that they can predict a price change. They sit and wait for the currency pair price to move back up, or come back down, beyond the previous resistance point. But by then – it’s too late.
Be smarter than them: Understand the trend, learn to spot it, and make substantial money in the forex market.
Strategy #2: Don’t Wing It – Swing It
Are you a beginner forex trader? Then swing trading is the strategy for you.
What is swing trading?
This unique forex trading strategy combines day trading with trend trading. Day traders hold a position for a shorter period (one day, tops), whereas trend traders examine the long-term fundamental trends of a currency pair and hold the position longer (months)
Swing traders hold each position for at least two or three weeks, basing their trading decisions on the intra-week or intra-month performance of the exchange.
You must define a particular area of resistance and support and then watch carefully for the momentum to shift. It’s the best forex trading strategy for beginners because it doesn’t require the discipline trend-spotting involves.
Swing trading works so well because it takes advantage of short-term price spikes caused by emotional trading.
You ride the highs and lows while the price corrects itself, leaving you with nice, steady profits.
Strategy #3: Set and Forget
It’s exactly how it sounds. You set up the parameters (entry, stop losses, and profit targets) before you initiate a position, and leave all of the actions automated.
If you use fundamental analysis correctly, you can rest assured your forex trade will reach its target profit.
And there you have it. Practice and master these three foolproof methods for Long-term currency trading, and in a year, you’ll enjoy a steady cash flow, almost without raising a finger.