In forex trading, various strategies can be applied. Different traders can use different strategies and even some strategies and methods can be combined as long as it is possible to do because some of them cannot be combined. One of the strategies is called 50 pip a day. This is interesting strategies that you can try when you are currently still a bit clueless about forex trading and suitable strategies to use. As its name shows, it utilizes the pip in the forex trading or the change of fluctuation in the market. It has its own methods and actually it is quite simple to use.
Before you use the 50 pips a day strategy, you should know its pros and cons. As for the pros, the strategy does not require certain indicator. You do not need to monitor the market and spend your time in front of the screen to check the charts. You do not need to make various identifications that can be complicated to do. Even if it is simple, it has limited assets that you can use. So far, the strategy only works best in pairs of EURO-USD and GBP-USD. The other pairs do not work well with the strategies because of the characteristics in them. Then, your optimal profit is limited to 50 pips a day and it is the origin of the strategy’s name. It is quite different from other strategies that can provide you with more maximum profits. However, it is one of the simplest strategies that you can use.
When you are interested to use the strategy, you can pay attention to the time. The perfect time is 7 AM GMT. You can set 1-hour candlestick to this specific time. When the 1-hour candlestick ends, what you need to do is to place opposing pending orders. You need to make two orders. The first one is the boy stop order and it should be placed two pips above the high pip as what you see in the time. Then, the second order is sell stop order and it must be placed two pips below the lowest one as shown at the time. Later, you should check the price movement. Based on the movement, you can know one of the orders that will be executed. Once it is done, you need to cancel the unexecuted order.
To perform the strategy, you need the support of good broker. It should be trusted broker so you will not have any issues later. In this case, you can check ironfx review. IronFX is one of the brokers that have run its business for more than 10 years. It offers many trading assets and of course it supports the pairs that work best in the 50 pips a day strategy. Then, it is also said that the broker has won more than 30 awards to show its excellent services. Next, it offers some bonus programs and even promotions that can bring you additional benefits. Yet, you should check its broker first to make sure that it is very suitable for you.
Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.
