Trend Following, Breakout and Swing Trading Strategy

FOREX is the abbreviation for Foreign Exchange. Currencies are bought and sold. The currencies are always traded in pairs. Foreign exchange trading is the largest financial market in the world. A comparison makes it particularly clear what volume is involved. For example, the New York Stock Exchange achieves a daily volume of about 74 billion dollars, the Forex market reaches a volume of over 4,000,000,000 US dollars per day.

Account management fees and transfer fees can add up and are an additional burden on the account. The fees charged by the broker are also significant, so the trader should check the price-performance ratio of his broker in advance. Also very interesting are the inquiries and information about the account-holding bank, the supervisory authority responsible in the specific case and the deposit insurance.

Trend following strategy

The first variant is the trend following strategy, which states that existing market impulses are to be recognized immediately in order to be able to follow them.

Breakout strategy

In the breakout strategy, chart technical conditions are cleverly used to anticipate the price development.

Swing trading strategy

The swing trading strategy, on the other hand, attempts to use short-term movements of the market for one’s own goals, even if these are contrary to the trend. The interaction of the trend following strategy, the breakout strategy and the swing trading strategy has contributed to the achievement of very high profit sums for many traders.