Make gain from the market volatility with forex position trading strategy

forex position trading is pretty much same like swing trading, except it is for a longer period of time frame. Forex position traders keep currencies for a certain period of time frame ranging from three months to one year. This type of forex traders are looking to capture currencies of which the forex technical indicators and the fundamental analysis indicate that there will be a potential currency price huge movement, however, it may not be completely occur over quite a few months.

Forex position trading strategy is an easy strategy to enhance your size of position and at the same they do not need to raise the size the risk. This forex trading strategy is usually works well with small lots and for standard lots, it works well with an average position.

Let say you buy small lot of EUR / USD currency pair at 1.2000 and place your stop loss point at 1.1970, thus you impose a $30 risk. If the currency pair price goes up, you can buy a second small lot at 1.2030 and place your stop loss point at 1.2000, and also put up the first small lot’s stop loss point at the same point as the second one. You now have two small lots with a risk remains at $ 30.

Next, let say you notice that the price continues to rise, you can buy a third small lot at 1.2060 and place your stop loss point at 1.2030 and also at the same time put up the previous two small lots’ stop loss points at the same point as the third one. Reason for this action is that to make sure that even tough your trades are in the most bad situation, all of your trades will reach break even.

Furthermore, if the price keeps rising, you can buy a forth small lot at a price of 1.2090 together you place your stop loss point at 1.2060. And once again, you lift up the stop loss points for the entire first three small lots at 1.2060, in order to secure your profit. Then, you can opt to buy the fifth small lot at a price of 1.2120, and again place your stop loss point at 1.2090 as well as lift up the stop loss points for the whole first four small lots at a price of 1.2090 so that your trade will be $ 150 profit secured. All the way through placing the buy orders and stop loss points, your risks of $ 30 keep on unchanged. Therefore, by implementing forex position trading strategy, you can reduce your risk while making nice profit.

Here are more ways for you to earn profit and make money from the forex position trading strategies.

You are actually can make money in the forex market regardless of whether the markets are going up wards or down wards trend. You can apply the most common strategy which is buy low and sell high by trading a long position. However, you also can turn upside down that trading technique by selling high and after that buy low by trading a short position, thus you can make money throughout up and down of the forex market.

When you trade a long position that means you enter a trade at a low price and hope to make money when the price arises. A long position which also the common way to trade; to buy at low price and sell at high price. This forex position trading strategy is a low risk style in comparison to trading a short position because the forex market is well known for its ordinary tendency to go up wards.

In contrary, when you trade a short position, you will make money by the opposite way. You get in the trade at the highest price that you expect in advance before the price goes to the opposite direction. Not like a long position trade where you tend to make money by buying low and selling high, you, on other hand, enter the with a sell order. And when the price goes down ward to a point where you place your take profit order, you place a buy order and immediately you get out of the position trade.

There is another obstacle if you trade a short position in addition to the tendency of up ward movement of the forex market. If you make a long position trade in the forex market and the price moves not in your favor, which is goes down, in theory, the price can only goes low not to zero point. Conversely, if you trade a short position, and the price moves not in your favor, which is goes up, there will be no zero point and it can keep moving in your opposite direction. Therefore, you could be losing all your money.

You may apply the same forex position trading strategy to average your trades. Daily, weekly as well as weekly 3 bars patterns charts are indicators that suitable to work together with the forex position trading strategy and also operative for longer period of time frame.