One of the best Forex trading strategies is the floor traders’ method. The floor trader method is made to capture the continuing trend. Actually, it can be used for swing trading if the currencies are trending positively. The traders should have the thorough knowledge in trading so in order gain the knowledge you should learn it. If you want to trade using one of the best strategies, for instance, the floor traders’ strategy you must learn three important things related to it. We should say that it is concepts of floor traders’ strategies; they are such as retracement, moving averages for trend, and the trading signals for the reversal pattern. Let us learn the retracement concept of floor traders’ strategies in detail.
The concept of retracement
The concept of retracements means if you consider the downtrend the lower price rally to upward. To be more specific, if you are trading in the downtrend market you will witness that the price is moving up even though it’s downtrend market and this minor bullish movement is known as retracement. The up move is only for some time, eventually, the price will again to follow the downtrend.
The next is if you are in the uptrend market, the scenario will be the opposite of what we mentioned above. The case is that you will witness the price to fall but it will not be for the longer time, eventually, it will continue to rise up.
The trade management
In the Forex market, nothing is complicated than managing the trades. It is complex as well as useful, but not all the trades meet the profit targets. In order to meet the profit targets you should maintain and plan your trades well for that you should be able to manage the trades. So how will you manage your profitable trades? Let us learn few tips to manage the profitable trades. First of all, if you see that the price is moving from the amount you risked then move the stop loss to break even. Secondly, in case the price moves double the amount you risked then leave half the profit and take the other half, and the last tip is you can stop your trades from each lower high for sell trades and the high lows for the buy trades. Being in the market is easy but being successful is tougher.
The profit targets
Do you know set profit targets accurately? We will give you a few ideas such as make sure you set profit targets thrice the amount you are risking, and also you can use the Fibonacci tool to estimate the profit targets.
Summary: actually, Forex market is not what you think, it is what you see. You cannot trade the market from what you think it should be what you see. If you are hoping to become successful by trading the Forex market then you should be wise enough to open your mind and think beyond the boundaries. However, the books and the theories will help you very little compared to adopting your own way. In order to become successful in the Forex market, you should build up your own path.