Knowledge Centre

  • Knowledge is power
  • Information is liberating
  • Education is the premise of progress, in every society
Currency | May 05
Different Strategies for Currency Trading in India

A trading strategy is the set of parameters based on back-tested analysis to enter or exit the currency pair as per the market conditions. Market veterans have developed a plethora of successful strategies to make consistent profits. There are a few important characteristics that distinguish a profit yielding strategy from others. Such a strategy will help in understanding the type of currency to trade in, the size of each position, the entry and exit points, and relevant techniques for the execution. 

In this blog, we have compiled several productive strategies that can aid you in making real profits in the forex markets.

  1. Candle stick Strategy: This is one of the simplest yet effective methods to trade currency. In this, the trader only reads the patterns formed by candlesticks or price action. This type of strategy works in almost all the market conditions i.e. trending, range-bound, and even volatile. 
  2. Volume Trading Strategy: Where there is more buying or selling there is more volume, which means more pressure or intensity. An easy example of volume trading strategy is to buy when the prices are moving high with higher volumes and sell when the prices are moving low with higher volumes. It is recommended to stay cautious when the volumes are low.
  3. Multiple Time Frame Strategy: Analyzing the forex chart on higher time frames and then moving towards lower time frames is termed as multiple time frame strategy. 
  4. Trend Trading Strategy: The market always moves in one of the three ways- upward, downward, or sideways. The only way to make money in the market is to identify and follow the existing trend. This strategy helps the trader to catch a trending trade or even get into an existing trade with various indicators like moving average, stochastic, etc.
  5. Counter-trend trading Strategy: This is the opposite of the previous strategy. In this, the trader tries to capture the top or bottom and take positions accordingly. This can be extremely profitable or loss-making at the same time.
  6. Scalping Strategy: A scalper exploits plenty of minor price changes in a day with quick transactions. A forex market is the best set-up for scalping as it provides liquidity and volatility in abundance.
  7. Range Trading Strategy: This is one of the safest trading strategies which can be done with relatively small stop losses and larger targets. This involves trading within a predictable range of prices by selling at the resistance and buying at the support levels. 

 

COMMENTS

No Comments Found

Contact Us

img
img
img
img
img

Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investor's account."
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactionsin your demat account directly from NSDLon thesame day......................issued in the interest of investors."

FINDOC INVESTMART PVT. LTD./FINDOC FINVEST PVT LTD.

Registered Office :

SCO 210-211, Sector 34-A Chandigarh-160022

Corporate Office :

4th Floor, Kartar Bhawan, Near PAU Gate No.1, Ferozepur Road Ludhiana -141001.