In the world of forex trading, there are many different ways of trading available. Some traders choose to use long-term, short-term techniques or a combination of the two. The term long term and short term is relative because every trader has a different time benchmark. For beginners who want to start forex trading in Brasil, the simple way of trading is the most sought after. You could also check out http://www.forextradingbrasil.com/ to get more information to help you get started. The distinguishing factor between one trading technique and another is the approach used. But usually common trading techniques involve a lot of steps which are confusing for new traders. Many traders assume that the more complex the method is used, the greater the chance to make a profit. If there is an easy way, why make it difficult?
To make it easier, you can use the following simple trading methods. Long term trading breakout is a simple way of trading that has proven to be successful in use. The method is very simple, namely by buying a breakout at a new high, then selling it at a new low. Most traders don’t want to try this trick thinking they have lost a bit of the price movement and are waiting for the chart to return. The key to this simple trick is to only use levels that the market considers important. Long-term breakouts generally only occur a few times a year per currency. But once there is a big move, the benefits are no less tantalizing.
The next simple way of trading is to use a short-term strategy to gain profit: forex swing trading. Swing trading is only done to take advantage of the overbought/oversold scenario in the main trend and you can do it using a simple trend line. When prices fall too far or go up too high, greed or fear sometimes forces you to get more. Once you have identified a support or resistance area, check for volatility by using Bollinger bands. Next, use the Stochastic timer to confirm the movement. You can profit early and get ready to look for the next one.