Possible working FOREX strategies

The first strategy consists in the long-term maintenance of the positions open starting from several days till several months. Such strategy is used by strategic investors and semiprofessional black marketers. This strategy is very effective at new trends and is less profitable at sideways and sluggish trends. It demands obligatory protection and corresponding work on the terminal options market. While working at long positions the fundamental analysis is not less important than the technical one. The share of the long positions in the trader’s practical work shouldn’t exceed 15% of the loan amount. The analysis for opening the long positions can also help you at a shorter game, namely:

· determine the long-term levels of resistance and support:

· the strong long trend will warn you when working against it at the short positions;

· you’ll get psychological confidence during the game at the short position towards the long trend.

The second strategy consists in working at medium-term trends. The protection by options is also necessary. This strategy is the most attractive to non-professionals. The middle positions are more stable for making profits though the analysis at decision-making for such game is more complicated. At this the quality of work also depends on the ability to play a short-term game (choose the right moment for opening and closing the position). At opening the middle positions technical analysis is not only carried out but also carefully looked through: whether there will be any news of the fundamental character by the time of closing the position, whether there is closing of a regional market at that time. The psychological factor of the game goes into the middle distance. Monitor the market all the time as it can spring a surprise at the most unearthly hour. If you play a medium-term game based on the fundamental factors, monitor carefully for the technical analysis not to run counter to your positions at the least.

The third strategy consists in short-term position opening with the duration from several minutes to several hours. This strategy is mainly used by professionals. Pluses: absence of any risk of appearing unfavourable fundamental news and price changes at your absence. Minuses: large costs (commission charges, communication services, etc.), big risk of unfavorable short-term price changes, it requires constant monitoring, concentration and tension during the whole working day. The main assistants at work are oscillatory methods of technical analysis (use the rules for choosing the right moment of opening). Don’t be too happy about a small profit gained at such work. You are at a risk of loosing everything you have earned by this time.