If you have tested or do real trading for some times, you must realize that there are many forex trading strategies that can be applied. Every strategy has different pros and cons, need different circumstance and data, and will works well in certain currency pair.

Basically, forex trading strategies can be divided into two major:

1. Technical analysis
This strategy relies heavily on data, mainly charts from previous market movements to forecast the future direction of prices. There are various methods to read this data such as candlestick charting or Elliot wave, but basically they search for patterns in the chart for a given time and looking for relationships between various indicators such as price and volume. You need the right tool for this, learn about it at technical analysis software.

This strategy is preferred by most traders and they use it in daily basis to decide the best transaction available currently. Usually, each trader has their own way to interpret the data by using various variables and designed specifically for a particular market he is in. These difference in methods make them have different winning rates even though they can access the same data; the trader with a better method will get more profits.

2. Fundamental analysis
This strategy is executed by analyzing various economy factors like interest rate, production, payroll, management, and overall state of economy to make entry and exit decisions. For example: some news such as Non Farm Payroll or Wholesale Inventories can affect the market greatly. If you can analyze the market movement before the news out, you can secure your position and wait for the profit.

On some occasions, there are important meeting holds by certain persons who have high influence in the state of economy. For example, a meeting about deciding a new interest rate or inflation will have great impact in the currency values. Usually it will be already too late to enter the market when the result has been announced, so you have to use the current data to analyze and guess the result before.

Not only short term trading, fundamental analysis can also be used as a long term forex trading strategies. This is rather complex, but basically you predict the future trends of the market based on how the new policy will affect the market in long run.

There are various ways to implement both strategies, for instance: Scalping.

Scalping
Scalping is about making small amount of profits from time to time where it will reach significant amount when combined. It requires the trader to spend most of his time watching his open positions, but it can be easier by using automated trading software. For example: When a trader who using scalping strategy sees a sharp movement in the market, he will use the opportunity to make profits even if it just 10 pips.

Not all traders can do scalping since it demands patience, quick decisions, and no emotion involved. A scalper will execute his strategy with strict discipline even if he notice opportunity to get more; he will make an exit as planned, gain small profit, and move to the next order. For decisions base, a Scalper usually using technical analysis method, but sometimes fundamental method can be applied too. Scalping can be very tiring and hard for a human trader, but not for a robot; read about the best scalping robot at FAP Turbo Review.

If you are still unfamiliar with forex and looking for a suitable forex trading strategies then I suggest learning technical analysis first, it is the basic of almost all strategies. Another alternative: just go with a proven system, check it at best trading system.

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If you have any interest to study forex trading from the very basic to the advance level, the best alternative is taling a good forex trading course. There are various offer at the internet about learning forex trading, but don’t be rushed when taking your pick. The worst case is you will spending months learning something useless or a course that contains only vague theories without real implementation.

If you are trying to pick a good forex trading course, use these following criteria:

1. Provide Informations About the Basics
No one can start from advanced level. If your course suddenly talks about Elliot Wave or hedging method, just throw it away. Your course should teach you how to build your trading skills from scratch and introduce you to various components of basic forex trading such as charting, indicator, leverage, trading account, forex broker, etc.

In my opinion, learning by doing is the best approach. Find a course that provide a guide to open a practice account in an online forex broker and learn how to use a trading platform. After that, you can learn to use various features of the trading platform such as chart, make an entry, place stop loss order, read news, etc. Read 4XP Review for a broker review where you can have the world leading trading platform Meta Trader 4 in your demo account.

2. Have a Good Trading System
Enter the market without proper preparations is not something that will be taught by a good forex trading course. There are many forms of analysis and strategies in forex trading and each of them is good in certain condition. Execute these strategies and analysis perfectly is the basic of a profitable trading system.

A good trading system should has detailed strategies based on certain analysis to identify the best entry and exit prices. This system should have tested against historical market data and current market movement to prove its effectiveness. Read more about identifying a good one at forex trading systems.

3. Teach Risk Management
Although you have a good trading system, there are always times when the market will moves against you. A good course should have a solution for this problem by applying risk management policy. There are many forms of risk management methods, but at the very least it should teach you how to place stop loss and take profit order. Doing this will remove the emotion factor, which is usually makes a trader careers doesn’t last long.

4. Provide Proof or Real Application Example
A good forex trading course won’t only teach empty theories that not applicable in the real market. It should show some proof or give video examples on how the system being implemented and gain profits from it. Having good testimonials from the actual users can also prove the system credibility.

5. Giving Money back Guarantee
A good course should be confident enough that its system and learning material can help you to become a better trader. This confidence can be reflected in the form of 100% money back guarantee. If you have learnt it for some time and think that it is useless, just ask for your money back guarantee.

Taking a good forex trading course is the first step to be a successful trader who know exactly how to study the market and take profits from it. In the future, you can always add various forex software to your trading system and evolve it further. Read about the current best forex trading course at forex wealth builder review.

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Yesterday Wednesday December 2nd, 2009, the Forex Megadroid took a position short on the EUR/USD pair right after a bullish candle at around 4pm PST. After a 33 pip loss, I decided to get out of the trade, and sure enough it would have been a stop out.

I am now no longer trading the droid and I updated the home page. I don’t know if it was due to the broker, the droid or who knows, but it’s over now. The net profit is still 100 pips, but that all occurred in the first 3 months of purchase. I truly believe that there really isn’t an artificial intelligence available today that can “predict” the market. The factors are too chaotic.

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