In the previous posts we have given some tips for you to learn how to choose killer strategies to operate Forex and important actions to develop if your goal is to become a successful trader . Now let’s discuss some winning strategies to successfully trade Forex and move towards your financial freedom. These tactics are constantly being used for greater profit, observing patterns of behavior of the financial markets that are repeated day by day.
Check out some important actions that will take your investments to another level:
1. Use the power of compound interest
Compound interest has incredible power over the high profitability that we all want to achieve. The difference of a percentage point on your monthly investments have a very big impact in the long run. For you to understand better, see this simulation:
-> Investing $ 300 per month for 15 years:
– Net profitability of 3% (2%) per month: R $ 0.5 million;
– Net profitability of 4% (3%) per month: R $ 2 million;
– Net profitability of 5% (4%) per month: R $ 8.7 million.
* In the calculations above, I deducted 1% of inflation to get closer to the real gain.
It is certainly not easy to achieve 4% profitability, you need to evolve, train ways to invest. But it’s worth it! So, do not get tired of talking: read as much as you can on the subject, invest in courses, watch our online classes. It is with knowledge that you will reach a high level in your investments.
2. Use IS Market Close when trading Forex
The Market Close Successful investor strategy is a strategy based on the characteristics of the foreign exchange market, of retreating at the closing of London’s financial market. The big traders – big fund investors, central banks, etc – have a habit of operating half an hour before the London market closes, closing positions and causing the market to slip back.
If the currency rose a lot during the day, it tends to fall and if it falls a lot in the period, it tends to rise at the end of the day. We can trade Forex both in buying and selling, without any problem, for those who invest in this market both raise and fall, since it operates both ways.
This opportunity to operate the retreat that practically all currencies do may change according to daylight saving time, but is usually between 12.15 and 12.45 GMT.
In this example you can see the relationship between the Euro and the Dollar, where there is a fall during the day and, well in the closing time, it is possible to perceive this decline. It is when this movement happens, where the arrow is pointed, that you can make an operation to make a profit.
It is exactly at 12:15 a.m. (Brasília time that happens), practically every day. That is, you can trade Forex exactly in this movement indicated by the arrow for profit. The operation can last between 15 minutes and 1 hour, that is, in a short time, using this winning strategy, you can earn considerable sums day after day.
Using this strategy we will have the exact criteria to know the right moment to buy and the time to sell and if we buy and keep falling, it is possible to leave in time to avoid greater losses. And if the move is in our favor, it is also easy to identify where we get the profit.
This is the example of a winning strategy that you can analyze that worked in the past and will continue to work year after year indefinitely.
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3. Use IS News
The Investor of Success News strategy is based on the dissemination of news about the economy of some countries and their influence on currencies. These disclosures of official economic data have pre-defined – and accurate – schedules and trigger strong movements in the financial markets.
When a country’s economy goes well, investors want to invest in that country and the currency goes up. An example is when the government announces the interest rate, or how the country’s GDP is, this type of information shows the weakness or strength of that economy and strongly influences the investments.
These are almost daily opportunities to monitor in the various countries of the world. For example, at least once a month the major countries announce how many jobs were created or closed in that period and it is important to be aware of these official disclosures.
This means that we can use specific Forex trading strategies in these movements. These ads are on certain days and times (and they are punctual), so you can look at the calendar and identify that “tomorrow will come out of the unemployment rate of Canada, the day after tomorrow will leave England’s interest rate, then the production industrial development of New Zealand “.
In the example below you can see the influence of a news on the movement of the market. You can check this large downward bar, equivalent to a fall that lasts only 15 minutes.
You notice on the chart that the market is up there until a news item related to the economy of that country came out that was negative. Then, the currency collapses in a very short period.
So we have to take advantage of these moves and operate the currency with a very short stop. This will mean that if the currency movement is unfavorable to our application, there is a slight loss and, if it is favorable, the gain is quite large.
Using this winning strategy is very interesting also for those who have little time available to do trading. This news is released daily in different countries and at different predetermined times, which can be morning, afternoon, or night. That is, a winning strategy for all tastes and availabilities.