There are a few Forex trading techniques i am sharing which i experienced while trading under
alpari.com that have proven their worth over time and are known to have minimum chances of failure, if applied accurately. Some of the most useful Forex trading techniques are mentioned below:
1. Hedging: Hedging is a way to reduce the risk by taking both sides of the trade simultaneously. In simple words, you need to go long as well as short on the same pair. As a result no matter in which way the pair moves, you will both earn and lose the money and will almost even out. Professional traders use this technique to cover up their initial trades, when they feel that the market might move against them.
2. Position Trading: This strategy involves trading based on your overall exposure to a currency pair. Your initial position acts as your average price for any particular currency pair. For Example, you have taken a short trade on EUR/USD at 1.20. If the pair is ultimately trending lower, but happens to gain strength and retrace up then you simply take another short position at say 1.22, now your average position would be 1.21. Once the EUR/USD drops back below 1.21, you will overall be in profit.