These are covered below based on the typical time involved, ranging from short to long term. Select a strategy that best suits your particular situation, including your available time, personality type and risk tolerance. Many successful strategies for trading forex exist, but not all of them are suitable for every trader. It’s usually best to start with smaller trades and then work your way up to larger amounts as you gain confidence in the strategy’s performance and your ability to implement it in a disciplined way when trading live. If any strategies still look profitable, you can start trading them in a live account for the ultimate test.
Vet your strategy in a demo account that most online brokers will allow you to open without risk. First, test each strategy via backtesting, which can be done with the popular MetaTrader forex platforms if you have modest programming skills.
Once you’ve decided on one or more forex strategy options, you should check out how they perform.
You’ll also want to select a strategy that best suits your lifestyle and personality type - not everyone wants to watch trading screens all day or is suited for the stress of fast-paced or high-risk strategies. Picking a forex strategy is one of the most important things you can do to help assure your profitability as a currency trader, so you will definitely want to choose a successful strategy.
