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Whenever you begin trading you might be overwhelmed by the selection of forex-strategies you're presented with. There is no way you'll be able to trade a couple of foreign exchange techniques at one time and you must make the decision of which one to trade.

There are a selection of factors to contemplate when selecting your forex-strategies. Firstly it's a must to select your timeframe and holding period. How long are you going to stay in the trade? It's important to decide if you'll trade intraday or hold trades overnight and are more of a swing or position trader.

Intraday forex methods are very popular and with such a forex strategy you're taking between 10 and 50 pips per trade and your risk profile are similar. If you happen to trade an intraday forex strategy you also normally trade between 1 and 10 times per day.

Swing or position traders usually trade a lot less and wait for a larger move in the forex market to take advantage of. They stay in the trade for 1 to five days and look to take a hundred+ pips on a trade. The stop loss on these trades can be a lot bigger and thus you have to have the account size to accommodate this bigger stop loss

Typically it is easier to swing trade than to intraday trade, and the irony is that most individuals are drawn to day trading because they believe it is easier to earn cash when you trade short term. That is also one of the reasons more than 90% of all traders fail – the bulk attempt to trade short term.

A famous trading author once said that day trading is like flying a fighter jet at very low altitude, one mistake and you crash and burn.

In the case of forex-strategies – it's the case of discovering the one foreign exchange technique which you are comfortable and successful with

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