Five classic strategies
| Strategy | Idea | Works best when | Weak when |
|---|---|---|---|
| Trend following | Buy strength, sell weakness | Markets trend strongly | Choppy sideways markets |
| Pullback in a trend | Join a trend after a dip to support | Clear trend with regular dips | Trend is ending |
| Breakout | Enter when price breaks a range or level | News or volatility expands | False breakouts in quiet markets |
| Range trading | Buy support, sell resistance | Markets move sideways | Strong trends |
| Carry trade | Hold the higher-yielding currency to earn swap | Calm markets, stable rates | Risk-off panics |
Questions people ask
What is the most profitable trading strategy?
There is no universal answer. Profitability depends on the market, the period, costs and how consistently you follow the rules. Test before you trust.
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Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.