Forex strategies » Page 11
Investment strategies are approaches to invest money. Each investor has to develop own plan to make use of financial instruments in order to eventually receive a decent profit. Having a strategy allows you to make more informed and balanced trading decisions. This helps to properly build a financial portfolio, which may include cash, stocks, bonds and other securities. This section offers several choices for strategies, and each potential investor can pick the most suitable kind of strategy.
Types of investment strategies
Several behaviour lines are considered the most popular among people committed in investments.
These include the following:
- Conservative investment strategy
- It is suitable for investors who do not want to take lots of risks, want to preserve the initial investment amount and get an attractive income.
- Moderate investment strategy
- In this case, we are talking about greater risk compared to the previous option, but incomes are growing accordingly.
- Aggressive investment strategy
- The investor takes the maximum risk in the hope that he will get an exceptionally great profit.
Those approaches above describe only the general features of the lines of investment method or risk appetite. Short-term and long-term investment strategies are also related to this section. Descriptions of alternative strategies can be also found on the website.
Composed of the most effective indicators - Bollinger Bands, Alligator, and Moving Average Convergence Divergence (MACD), the strategy is a very proficient trend detector and highly appreciated by trending traders.
“Doubles” is a relatively new technical system which mainly takes advantage of ‘overbought’ and ‘oversold’ points in order to find out potential reversals. This article will present how to apply the Doubles strategy to trade and profit from the Forex market.
Momentum Strategy Fractal and Moxo is composed of both leading and lagging beacons. The lagging indicator used in this technical system is Fractal trading – a well-developed indicator whose function is to determine reversal points and trading entries in the market.
Venture investments are investments developed to fund fresh (so-called start-ups) or growing companies that have high-risk activities. Typically, the investor uses this investment as a good long-term bet and they will get in exchange the share of the company by estimating the profitability above the average market level in this industry.
Bollinger Bands is a popular forex trading strategy constituted of three famous indicators – Bollinger Bands, Parabolic SAR, and Relative Strength Index. Based on basic trend-following principles, this strategy is highly appreciated by traders for its flexibility and profitability.
Trendline is the most valuable thing that every trader looks for. Successfully catching a nice trend, you can earn lots of profits trading it. Of course, using repainting indicators is a good idea.
Trend-following is proven by many professional traders as the best trading theory. The main advantage of the technical strategies based on the trading-the-trend theory is that they enable users to collect a series of profits in a grand movement.
Simple Renko is a popular trend-following strategy used by many professional mid-term traders. Besides some advantages such as detecting tradable trend effectively, generating accurate signals or working on any trading time frames, this strategy is also appreciated for its flexibility and simplicity.
Stochastic Oscillator is a famous leading indicator developed by George Lane and widely applied to confirm trends’ momentum. Meanwhile, Exponential Moving Average (EMA) is the most popular leading beacon which is very proficient in detecting trends and trading opportunities.
Today, we would like to continue the series of trading the market trend with a strategy composed of three popular built-in indicators–Exponential Moving Average (EMA), Relative Strength Index (RSI), and Average Directional Index (ADX).
How to choose an investment strategy?
The selection of a suitable strategy has to be carried out based on pre-set goals and targets. The wide variety of opportunities and offers in the market might scare a beginner trader. In this section, you can easily choose the tactics that will help you make sufficient profits. All aspects are accompanied by detailed descriptions, the investor can easily find out what is investing in stocks and which types of investment strategies are better to implement.