We are used to following traditional forex trading strategies. But there are some investors that require more advanced and specific strategies to improve their trading. This is why we have decided to create an alternative forex trading strategies guide that would help you understand how to better trade currencies from all over the world.
Alternative forex trading strategies range from using leverage to following fundamentals or trading signals. Everything depends on the type of trading activities you conduct. You should also adjust these alternative forex trading strategies according to your needs (for example, if you are a long-term or short-term trader).
Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional. financial advisor.
Alternative Forex Trading Strategies
There are different alternative Forex trading strategies that you can use depending on your needs. In this post, we share with you three of the most popular alternative forex trading strategies that you can implement at any time.
Although there are many others, we consider that these three could already help you change the style of your trading and the results you have. Although there is no magic strategy to be profitable at all times, these strategies could be very useful.
Fundamentals Rather Than Technicals
One of the things that most traders do is focusing on technical aspects of the trading rather than fundamentals. We believe that a good analysis involves both technical and fundamental indicators rather than one of these two possibilities.
However, if you are a person that focuses on the charts and never looks around, you could try using fundamentals this time. At least, you could try having a look at them and understand whether they say to you the same information as your technical indicators.
Fundamentals focus on different things that could affect currencies. For example, exports and imports of a country could play a very important role in defining the exchange rate. If you see that there are some issues with exports due to weather (some commodities could be affected), and the country highly depends on commodities, then the currency of this country could become weaker than usual.
Following these fundamental things and indicators is just a good way to increase your knowledge of how specific trends evolve. If you planned for a trading strategy that did not include fundamentals, try adding them this time.
Leverage Trading
Leveraged trading could be an amazing way to expand your profits when you properly guess the direction of the market. Trading with leverage involves borrowing funds from another person and using them in order to increase your exposure to a specific trade.
This can be done using perpetual futures where you can borrow funds and open both long and short positions depending on the direction in which you believe the market is going to move. Most of the traders, however, tend to use as much as 100x leverage.
That means that they are increasing their purchasing power 100 times. If they deposited $200, they can trade with as much as $20,000. If the trader makes a trade of 10% profits, rather than earning $20 the trader will earn $2,000.
However, if the market moves on the contrary direction and you have no funds to keep the position open (you need to give back the total $20,000 borrowed), then your position could get liquidated (you lose all your funds).
Follow Trading Signals
You can also follow trading signals. These are trading signals groups that allow you to follow their groups that share unique information about whether the market is moving. AltSignals shares forex trading signals with users that will definitely help you open and close positions.
AltSignals is one of the most respected and accurate trading signals groups in the world. The team behind AltSignals is sharing trades that allow you to open and close positions on different forex trading pairs.
You can automate your tradings with a bot. That means that you do not need to be 24 hours in front of the screen. Instead, you can easily let the trading bot follow the signals shared by AltSignals. In this way, your account will be trading automatically all the signals that are shared by this trading signals group.
These are just some of the alternative forex trading strategies available in the market. But there are many others that you could search for.
