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FX Empire Editorial Board
trading strategies

There are many trading strategies used when it comes to trying to making a profit with Forex however some are by far more popular than others, according to a new research. The team at TopTradingPlatforms have commissioned the research as part of an ongoing study into Forex traders in the UK and their most used strategies. 1,747 Britons aged 18 and over, all of whom stated that they were actively trading on forex, were asked about what are the top strategies used.

Below we have listed the results of the survey:

Scalping – 35% of the responded said to be actively involved in short-lived trades. This type of strategy involves holding the position for just a few minutes and skim just a few points of profit before closing the deal

Day Trading – 40% of the responded said that they are getting particularly exited before the end of the day! As the name suggests this strategy is to avoid being affected by large moves overnight. In this situation trades might last few hours although similarly to scalping the deal could be set in few minutes depending on the opportunities

Swing Trading – 18% of the responded are using this strategy. In this case, the position is held for several days with the idea of profiting from short-term price patterns. Normally a swing trader assesses his situation every half hour or hour.

Positional Trading – 7% of the responded are going with the idea of long-term gains. They are not interested in short-term movements but they are seeking to maximize profit from major shifts in prices. Normally those traders just look at the charts at the end of the day

As it is clear from the survey Britons Forex traders are looking for short time gains which could be a sense of lack of education and confidence in the financial asset they are trading.

Ethan Rowe, editor-in-Chief of TopTradingPlatforms.co.uk, commented: ‘This trend is quite surprising as it clearly shows that most forex traders in the UK have very little knowledge of financial assets and they might be using online trading as a different form and maybe a more ‘politically correct’ way of gambling their money away. Educating those traders should be the first objective of forex online brokers if they want to retain those customers long term and avoid they will burn their capitals very quickly!’

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