Function

• FOREX market trading strategies provide you with a technique and a guide to your trading. Some people simply open up a FOREX account and start placing trades. By having a specific strategy, you can remove the emotion from your trading and stick to a plan. Over the long-term, this has the ability to improve your results and make your FOREX trading much easier to handle. Instead of guessing, you can use a plan that has been proven to work.
  
  

Short-Term

• Choosing a short-term FOREX trading strategy can provide you with the ability to take small, regular profits out of the market. One of the most popular short-term strategies is referred to as a scalping strategy. With this type of strategy, you open a trade and then close it out only a few minutes or seconds later. This strategy attempts to frequently take small winners. This strategy is also risky because it is difficult to predict what could happen in the short term.
  
  

Swing Trading

• Swing trading is another strategy that many FOREX traders use. With this type of strategy, you analyze the market and then make an assumption about what could happen in the market over the next day. If the market meets your trading criteria, you can place a trade and then leave it open. Every day, you can check the trade to see progress, but you do not frequently monitor it. This type of strategy uses the short-term trend to earn profits.
  
  

Trend Trading

• Trend trading is a type of FOREX strategy that uses a more long-term approach. Trades with this type of strategy can last for weeks or months. With a trend trading strategy, you analyze the markets to determine what they could do over the long-term. Then you place a trade in the direction of the trend and hold the position for an extended period of time. You would stay in the trade until you felt that the market was ready to reverse.
  
  

Tools

• Implementing FOREX trading strategies generally requires a great deal of technical analysis. To effectively complete this technical analysis, you can use a number of tools. Indicators, expert advisers and trading templates can be used to help you analyze the market. You can plug many of these tools into the price charts on your trading platform to determine which way the market is moving.