And there we have it. Gold has officially crossed $4,000 for the first time in history, after hitting $3,000 just seven short months ago. The question asks itself: how long until the precious metal adds another $1k to its tally? The current macroeconomic environment remains good for gold. The Fed will continue to lower rates on the Dollar, forcing market participants to seek returns elsewhere, while investors around the world flock to safe-haven assets. Uncertainty persists around a number of geographic markers, including France, the Middle East and Ukraine, while central banks around the world continue to shun treasuries in favour of stockpiling more precious metals. Gold ETFs also reported record inflows in the third quarter of the year and trading volumes are exploding across the board. Even industrial demand is playing its part, although more so in silver, platinum and palladium than gold. Speaking of silver, the white metal remains perilously close to striking a record high of its own, but for the time being everyone is understandably focused on gold.
We finally have something to talk about in currency markets. The Dollar has regained some measure of strength in recent days and the DXY is now fast approaching 99. The situation unfolding in France has resulted in a loss of confidence in the Euro due to budget concerns. With the latest resignation of Sebastien Lecornu, the French parliament has now gone through three Prime Ministers in less than a year, and a total of seven during Macron’s combined presidencies. The Euro is down to $1.162 as of this morning.
In Japan, the recent leadership victory of Sanae Takaichi has prompted a significant flight out of the Yen. The new Prime Minister is expected to engage in much more aggressive economic policies in a bid to stimulate the Japanese economy and has been critical of the Bank of Japan’s recent rate hikes. The prospect of slower rate hikes has punished the Yen, leading to a 3% loss against the Dollar so far this week and driving USDJPY past 152 this morning.
October 08, 2025
Cryptocurrencies have gone from being a niche obsession of tech geeks and libertarians to a mainstream asset class, that even your neighbour Dave brags about owning (usually right before the market tanks). From Bitcoin pizza purchases to billion-dollar funds, the digital asset rollercoaster shows no signs of slowing down.
But here’s where things get interesting: not everyone buys or trades crypto the same way. Some people use crypto exchanges, those digital marketplaces where you can swap your hard-earned dollars for Bitcoin, Ethereum, or a coin with a name that sounds like a Pokémon character. Others, however, are quietly doing something different: they’re trading crypto through their good old forex broker.
Wait, what? The same broker you use to trade EUR/USD or GBP/JPY also lets you trade Bitcoin? Yes. In fact, many forex brokers now offer crypto trading right alongside currencies, commodities, and indices. And for some traders, this feels as natural as ordering fries with your burger.
But here’s the million-dollar (or one-Bitcoin) question: why would anyone choose to trade crypto through a forex broker instead of a crypto exchange? Isn’t that like buying sushi from a petrol station? Maybe… but as it turns out, there are some pretty solid reasons people do it. Of course, there are also some major downsides, which we’ll explore later.
So, grab your digital wallet (or at least your sense of humour), because in this article we’re going to explore:
By the end, you’ll know exactly whether trading Bitcoin via your forex broker is a stroke of genius, or the financial equivalent of paying extra for bottled water when the tap’s just fine.
Before we start throwing shade at either side, let’s get clear on what we’re actually comparing.
A forex broker is like your financial middleman, the person who makes it possible for you to buy and sell currencies, and increasingly, other instruments, without having to fly to Wall Street and start waving your hands around in a pit full of sweaty traders. Brokers usually give you access to slick platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), where you can click, drag, and chart your way to trading glory (or financial ruin, depending on how your last gold trade went).
They make money mostly from spreads, commissions, and sometimes sneaky overnight financing fees. But the key point? Forex brokers are usually the adult in the room, financial authorities that make sure the broker doesn’t just run off with your cash.
Crypto exchanges, on the other hand, are like bustling digital bazaars where people swap Bitcoin, Ethereum, and thousands of other coins you’ve probably never heard of. Some exchanges are highly professional (think Coinbase or Binance), while others look like they were built in a spare room above a Kebab shop in a rundown area of town way back in 2009 and they still haven’t updated their customer support line.
Here, you are often trading “real” crypto. You buy it, you own it, and if you want, you can transfer it to a private wallet where you hold the keys (and nervously triple check you didn’t send your life savings to the wrong address).
Exchanges aren’t always regulated in the same way brokers are. Some have licenses, others are still trying to figure out how to explain themselves to governments. And of course, some have collapsed spectacularly (cough FTX cough), reminding traders that “not your keys, not your coins” is more than just a catchy slogan.
What is the overlap? Both let you trade cryptocurrencies. Both give you platforms to click “buy” and “sell” with frightening ease. But the philosophy is different:
In short, forex brokers are like the controlled environment of a gym treadmill, while crypto exchanges are more like trail running in the wilderness. One is predictable and regulated; the other has more freedom, but you might twist your ankle.
If you’re wondering why someone would trade Bitcoin through a forex broker when shiny crypto exchanges are a click away, don’t worry, you’re not alone. But as with most things in finance (and life), convenience and comfort often win out. Let’s explore the main reasons traders cosy up to their forex brokers for crypto action.
Imagine logging into one platform and being able to trade EUR/USD, gold, the WS30, and Bitcoin, all without juggling multiple logins or trying to remember which two-factor authentication app you used. That’s the magic of forex brokers. Everything’s under one roof.
For traders who already spend their days glued to MT4 or MT5, adding a Bitcoin chart to the mix feels natural. Why learn a brand-new exchange interface when you can just slap another chart on to your screen?
Let’s face it: most crypto exchanges have interfaces that feel like you’re piloting a spaceship. Order books, charts, liquidity depth, and a hundred different order types, it’s enough to make a newbie’s head spin, not to mention an old sweat like me!
Forex brokers, on the other hand, stick to what traders already know. MetaTrader might not win awards for beauty, but it’s simple, reliable, and lets you run all your favourite EAs (Expert Advisors) while pretending you’re not over-leveraging again.
This is a big one. Most forex brokers let you trade crypto CFDs with leverage, sometimes up to 1:10 or 1:20. That means you can control a much larger position than your actual deposit would normally allow.
For some traders, the idea of wiring money to an offshore crypto exchange feels about as safe as sending your wallet to a stranger on Instagram. Forex brokers, at least the trusted ones, have to follow strict rules about client funds and reporting. That extra layer of oversight can give traders peace of mind.
Sure, not every forex broker is squeaky clean, but compared to the Wild West of unregulated exchanges, it feels a bit like moving from a dodgy back street casino into a proper Las Vegas venue. The house still wins most of the time, but at least the drinks are free.
If you’ve been trading forex for years, switching to crypto on your broker’s platform doesn’t require you to learn anything new. It’s like ordering your usual coffee from your favourite café; no need to explain yourself, no surprises, it just feels familiar and right.
For traders who just want exposure to Bitcoin or Ethereum without diving into the deep end of blockchain technology, forex brokers are the easy button.
Of course, trading crypto through your forex broker isn’t all sunshine and Lamborghinis. In fact, for every shiny perk, there’s usually a catch hiding in the small print. Let’s dig into the not-so-glamorous side.
Most forex brokers only bother listing the “A-list celebrities” of crypto, Bitcoin, Ethereum, maybe Litecoin if they’re feeling generous. Don’t expect to find meme coins, obscure tokens, or that weird project your mate in your local bar swears will be “the next big thing.”
If you’re the type who likes browsing the full crypto buffet with thousands of coins to choose from, a forex broker will feel more like a sad hotel breakfast.
On exchanges, fees are usually clear and upfront: a small percentage per trade. With forex brokers, the cost often hides inside the spread (the difference between the buy and sell price).
Add to that the potential overnight financing charges (a.k.a. “swap fees”), and suddenly your “cheap” trade isn’t looking so cheap. Brokers know you’re here for convenience, and convenience rarely comes free.
Here’s the biggie: in most cases, when you trade crypto with a forex broker, you’re not actually buying Bitcoin. You’re trading CFDs (Contracts for Difference) or another type of derivative. That means you’re just speculating on the price, not owning the underlying asset.
So, forget about transferring your coins to a private wallet, staking them in decentralized finance, or bragging about “hodling” (long-term investment strategy) through the next bull run. With a forex broker, you can’t send Bitcoin to your hardware wallet, because you don’t actually own any. It’s like betting on horse racing without ever seeing the horse.
On a crypto exchange, if you want to move your coins, you can send them directly to your wallet. With a forex broker? Nope. You deposit in fiat, you trade in fiat, and you withdraw in fiat, although many brokers are looking to add crypto withdrawals in the future.
If your dream was to stack sats and live off crypto someday, you’ll be disappointed. Forex brokers keep things old-school: dollars, euros, pounds. Digital coins stay on the screen only, for the moment.
Planning to hold Bitcoin for months at your forex broker? Brace yourself. Many brokers charge daily overnight fees for holding leveraged positions. Over time, these fees can quietly chew through your account like termites in wooden furniture.
Crypto purists laugh at this, since on an exchange you can buy and hold Bitcoin for years without paying a cent in “overnight financing.” But with a broker, it’s more like paying rent to keep your coins parked there.
Here’s the million-dollar question (or 9-Bitcoin question, depending on which way the market’s swinging): are crypto prices the same whether you trade on a forex broker’s platform or a crypto exchange? The short answer: not quite. Let’s explore why this is the case.
On a crypto exchange, prices come straight from the order book, a live record of buy and sell orders placed by real people (and lots of bots pretending to be real people). The price you see is the result of supply and demand in that particular marketplace. More buyers push the price up; more sellers push it down. Pretty simple.
Liquidity is key here. The bigger the exchange, the deeper the liquidity pool, and the closer the price will track the global market average. That’s why the big names like Binance or Coinbase usually stay in line with each other, while smaller exchanges might look a bit… off.
Forex brokers don’t usually have order books for crypto. Instead, they get their prices from liquidity providers, essentially, big banks, market makers, or other exchanges. The broker takes this feed, adds a spread (their cut), and serves it up to you on MT4, MT5, or whatever platform you’re using.
While prices on a forex broker’s platform generally follow the broader market, they’re not identical to exchange prices. Think of it like buying a Coke at the airport: it’s still Coke, but you’re paying airport prices.
On top of that, brokers often bake wider spreads into their quotes. For example, Bitcoin might be $50,000 on Binance but show up as $50,100 / $50,300 on your broker’s platform. That $200 gap is your cost of convenience.
There’s also slippage, the difference between the price you click on and the price you actually get. Fast-moving crypto markets love to play this game, and spreads plus slippage can add up to a nasty surprise if you’re not careful.
At this point, the clever traders might be thinking: “Aha! I’ll just buy on the exchange at $50,000 and sell on my broker at $50,200, free money right!” Unfortunately, brokers have already thought of that, and the mechanics of arbitrage between a CFD platform and a real exchange are messy (not to mention, brokers tend to close loopholes faster than you can say ‘risk-free profit’).
Prices on forex brokers and crypto exchanges are usually similar but not identical. For long-term traders, the small differences may not matter much. But for short-term scalpers and day traders, those extra spreads and tiny gaps can be costly.
Not all traders are created equal. Some like fast-paced scalping, some like long-term investing, and some just like to tell everyone at parties they “trade crypto” without ever opening a chart. So, who actually benefits from trading through a forex broker, and who’s better off sticking to exchanges?
For traders who live on 5-minute charts and survive on coffee and adrenaline, forex brokers have a few perks:
But there’s a catch: wide spreads and slippage can quickly eat into the razor-thin profits scalpers chase. It’s like running a marathon while someone keeps moving the finish line a few steps further.
If your idea of trading is buying Bitcoin and forgetting about it until the next halving cycle, a forex broker is basically useless to you. Why?
Exchanges (or better yet, private wallets) are the clear winners for hodlers. Brokers are for speculating, not storing.
Some traders don’t trust crypto exchanges after seeing headlines like “Major Exchange Collapses, Billions Lost”. For them, a regulated forex broker feels safer. At least there’s someone to complain to if things go south, even if that someone is a regulator who politely tells you, “We’re looking into it.”
If you’re the type who likes dabbling in meme coins, DeFi tokens, or anything Elon Musk tweets about, forex brokers will disappoint. You’ll find Bitcoin, Ethereum, maybe Ripple if you’re lucky, but that’s it. Exchanges win hands-down here, offering thousands of tradable assets, from serious projects to coins that sound suspiciously like recipe ingredients.
Then there’s the smart middle ground: traders who use both. They trade short-term crypto moves on their forex broker (for the convenience and leverage) but buy and hold real crypto assets on exchanges or private wallets.
Question: - Should you trade cryptocurrencies through your forex broker or stick with a dedicated crypto exchange? The answer, like most things in trading, is, it depends: -
Forex brokers bring convenience, familiarity, leverage, and regulation to the table. If you’re already trading forex, adding Bitcoin or Ethereum into the mix on the same platform is as easy as ordering dessert after dinner, no need to change restaurants. For short-term traders who just want to speculate on price moves, brokers can be a comfortable, streamlined choice.
But the downsides are hard to ignore. Limited coin selection, higher spreads, hidden fees, and, most importantly, the fact that you don’t actually own any crypto. If your dream is to hodl coins, keeping them long-term, transfer them to a cold wallet, or dive into the weird and wonderful world of altcoins and blockchains, forex brokers cannot provide you with this.
As for prices? They’re usually close enough between brokers and exchanges to not cause chaos, but small differences (plus those wider spreads) can nibble at your profits faster than you’d like. Arbitrage fantasies aside, the “cheap and cheerful” trade is rarely as cheap as it looks.
In the end, it comes down to your style.
The key is knowing what you’re really getting into. Trading crypto through a forex broker isn’t “wrong”, it’s just a different flavour of trading. Some prefer vanilla, some prefer Caramel Chew Chew. As long as you know what’s in the tub before you dive in, you won’t get any nasty surprises.
Personally, being old school, I like the Forex broker angle, it is convenient and simple. Crypto trading is just another asset that I can make money from, and I don’t have to deal in complicated wallet numbers and blockchains. If the price of Bitcoin tanks I am out of the trade and not worrying that I am going to lose my pants if it keeps dropping as I don’t actually own anything.
October 07, 2025
US stock markets continued to hit record highs last Friday, despite the ongoing shutdown of the federal government. So far, negotiations between both sides have yielded very little and by all accounts, it may take a while longer to reach a resolution. US government shutdowns are nothing new and typically last no more than a week or so, but the timing of the current gridlock means that central bankers, investors and traders alike are lacking crucial economic updates. NFPs failed to materialise on Friday and if the shutdown continues, so too will Thursday’s jobless claims. Despite the disruption, it is business as usual as far as Wall Street is concerned. The Dow Jones Industrial Average and S&P 500 both hit record highs on Friday, as did the FTSE 100 index in the UK.
Precious metals ended the week on a high note, with gold edging up to $3,886 and silver closing Friday’s session a hair’s breadth under $48 per ounce. The low liquidity environment helped to push precious metals even higher this morning as the Asian session opened for the day, with gold and silver rising from the opening bell. Gold has broken its own record so many times this year that most people stopped counting long ago. For silver however, things are different. Silver is now inches away from breaking its record high established all the way back in 1980 and matched in 2011. The moment silver crosses $50 an ounce, the white metal will be in uncharted territory for the first time in decades.
The excitement in precious metals has also spread to Bitcoin, which tapped $125,000 per coin over the weekend, beating its previous record high established back in August. Cryptocurrencies have traditionally over performed in October, and while traders have a long way to go until the end of the month, so far this year is no exception.
Rather difficult to lay out the economic calendar when the government bodies responsible for collating and publishing the data are closed. When the US government finally does agree to a funding plan and reopens for business, markets will be granted an overdue NFP report, but as of this moment, it is impossible to say when. A surprise NFP drop sounds terrifying for unprepared traders, so with any luck, markets will get some warning beforehand. Absent any unforeseen releases, Wednesday will provide the minutes from the last FOMC meeting, which resulted in the first rate cut of the year. The absence of economic data certainly makes the Fed’s job more difficult, but given historical trends, it is very unlikely that the shutdown will last until the next meeting on the 29th of October. Chairman Powell is scheduled to deliver a speech the following day, which should shed light on the Fed’s perspective on the ongoing situation on Capitol Hill.
October 06, 2025
I’m often asked the same question: What are the best trading strategies used by the best traders in the world? People want the ones that make the most money, are easy to understand, and can be applied right away. The truth is, there isn’t a one-size-fits-all answer. The best trading strategies are the ones that fit your personality, your risk tolerance, and the way you see the market.
Trading is a skill that takes time to develop. Many traders spend thousands on courses or attend seminars where top professionals share their methods. But here’s the catch: everyone’s brain is wired differently. A strategy that works brilliantly for one trader might feel completely unnatural for another.
Markets themselves also change shape. Sometimes they trend strongly, sometimes they fall apart, and sometimes they just go sideways. Each environment calls for a different approach:
In this article, we’ll explore the most popular trading styles used by successful traders. By the end, you’ll have a much clearer idea of which trading style, and ultimately, which strategy could be the best fit for you.
Trend trading is one of the most widely used and time-tested strategies. The principle is simple: “The trend is your friend - until it ends.” Traders identify a market that is moving consistently in one direction (up or down) and ride that movement for as long as possible.
Trend trading works best in markets with strong, sustained momentum, such as currencies during monetary policy shifts, or commodities like oil and gold during geopolitical tensions.
Day trading is a strategy where traders enter and exit positions within the same trading day, avoiding overnight exposure. The goal is to profit from intraday price movements, taking advantage of volatility and liquidity in active markets such as forex, stocks, and futures.
Day trading works best in highly liquid, volatile markets, where prices move frequently and spreads are tight.
News trading is a strategy built around economic releases, central bank announcements, and geopolitical events. These events often trigger sharp volatility, which traders try to capture. The core idea is simple: markets move fastest when surprised, and traders who position themselves correctly can make quick profits.
Examples include:
Read more: FOREX NEWS
Read more: ECONOMIC CALENDAR
End-of-Day trading (EOD) is a strategy where traders enter or exit trades based on daily closing prices, analysing charts at the end of each trading day rather than continuously during the day. This approach allows traders to avoid intraday noise and reduces the need for constant monitoring.
EOD trading works best in moderate volatility markets and is often used by swing traders, position traders, and part-time traders.
Swing trading is a medium-term strategy where traders aim to capture price swings within a trend or range, typically holding positions from a few days to several weeks. It sits between day trading and position trading, blending technical analysis with some fundamental insight.
Swing trading works best in markets with moderate volatility and identifiable patterns, such as stocks, forex, and commodities.
Captures Bigger Moves than Day Trading: Allows more profit per trade.
Less Stressful than Intraday Trading: No need to monitor markets constantly.
Flexible Time Commitment: Suitable for part-time traders.
Scalping is a very short-term trading strategy that seeks to profit from small price movements. Trades are typically held for seconds to minutes, and traders aim for frequent, small gains throughout the trading session. It is very popular with newbie traders as it is quick fire action and can be exciting.
Scalping works best in highly liquid and volatile markets, such as major forex pairs, popular stocks, or futures contracts with tight spreads.
Position trading is a long-term strategy where traders hold positions for weeks, months, or even years to capitalise on major market trends. Unlike day or swing trading, position traders focus on fundamental and macroeconomic factors as well as technical analysis.
This strategy works best in trending markets and for assets with strong underlying fundamentals, such as major stocks, forex pairs, or commodities.
Gap trading is a strategy that focuses on price gaps; areas on a chart where the price moves sharply up or down with no trading in between. These gaps often occur at market open, caused by news, earnings reports, or after-hours events. Traders aim to exploit the inefficiency created by these gaps.
Gap trading works best in volatile markets like stocks, forex, and commodities, where overnight or between-session movements are significant.
Price action trading is a strategy that relies purely on the price movements themselves, without heavy reliance on indicators. Traders read candlestick patterns, support/resistance levels, and chart formations to make decisions. This approach is popular among traders who prefer clean charts and direct market signals.
Price action trading works well in all market types, but it is especially effective in trending and range-bound markets where patterns can be clearly identified.
Algorithmic trading (or algo trading) is a strategy where computer programs automatically execute trades using expert advisors based on predefined rules and conditions. These rules can include price, volume, timing, and complex mathematical models.
Algorithmic trading works across all market types and timeframes, from high-frequency trading (HFT) in seconds to long-term automated strategies spanning weeks or months.
Breakout trading is a strategy where traders enter a position when the price breaks through a key support or resistance level. The idea is to capture the momentum that follows a breakout, as prices often continue strongly in the breakout direction.
Breakout trading works best in markets poised for volatility, such as stocks around earnings, forex pairs near key levels, or commodities after consolidation.
Mean reversion is a strategy based on the idea that prices tend to return to their average or mean over time. Traders look for assets that have moved significantly away from their historical average and take positions anticipating a reversal toward the mean.
Mean reversion works best in range-bound or stable markets, where prices oscillate around a consistent average rather than trending strongly.
Fibonacci retracement is a technical analysis strategy that identifies potential support and resistance levels based on the Fibonacci sequence (commonly 23.6%, 38.2%, 50%, 61.8%, and 78.6%). Traders use these levels to anticipate price reversals, pullbacks, or continuation points.
This strategy works best in trending markets, helping traders enter on retracements within the trend rather than chasing the market.
Arbitrage trading is a strategy where traders exploit price differences for the same asset across different markets or instruments. By simultaneously buying low in one market and selling high in another, traders aim to lock in risk-free profits.
Arbitrage works best in highly liquid markets, such as forex, stocks, futures, and cryptocurrencies, where small price discrepancies exist.
Pairs trading is a market-neutral strategy where traders identify two correlated assets and take opposite positions: long on the underperforming asset and short on the outperforming one. The idea is that the spread between the two will eventually converge, generating profit regardless of market direction.
Pairs trading works best in correlated markets, such as stocks within the same sector, ETFs, or forex pairs.
Strategy Type
|
Benefits
|
Tricks
|
Risks
|
Applicable Scenarios
|
|---|---|---|---|---|
| News Trading | Quick profits, frequent opportunities, short holding periods | Know your economic calendar, pre-plan levels, formulate hypotheses, use stop-loss orders | Unpredictability, stressful, poor trade execution | High-impact news events, forex, stocks, commodities |
| Trend Trading | Captures long-term trends, clear direction, easier planning | Confirm trends with indicators, follow moving averages, align with market momentum | False trends, delayed entries, whipsaws | Trending markets, forex, stocks, crypto |
| Day Trading | Quick profits, avoids overnight risk, frequent setups | Focus on high-volume assets, use intraday charts, set tight stops | High stress, overtrading, transaction costs | Liquid intraday markets, forex, stocks, futures |
| End-of-Day (EOD) Trading | Simplifies execution, reduces stress, avoids intraday noise | Use daily charts, pre-plan orders, confirm trends | Overnight gaps, missed opportunities, delayed reactions | Part-time traders, daily chart strategies |
| Swing Trading | Captures bigger moves than day trading, flexible time, lower stress | Identify key levels, combine indicators, trade with trend | Trend reversals, overnight gaps, requires patience | Trending or moderately volatile markets, stocks, forex |
| Scalping | Frequent profits, short holding periods, precise risk | Trade liquid markets, use short charts, plan entries/exits, leverage tech | High stress, execution risk, transaction costs | High-liquidity markets, forex, futures, major stocks |
| Position Trading | Captures large trends, low stress, low transaction cost | Focus on fundamentals, wide stops, patience, diversify | Overnight gaps, capital tie-up, trend reversals | Long-term trends, major stocks, forex, commodities |
| Gap Trading | Profit from overnight moves, clear entries, quick gains | Identify gap types, analyse volume, plan stops | Gap reversals, high volatility, limited opportunities | Stocks, forex, commodities with frequent gaps |
| Price Action Trading | Simple, versatile, teaches market reading | Master candlestick patterns, use support/resistance, focus on higher timeframes | Subjectivity, false signals, requires experience | All markets, trending or range-bound, multiple timeframes |
| Algorithmic Trading | Speed, eliminates emotion, back testing | Back test thoroughly, monitor live performance, diversify strategies | Technical failures, overfitting, market impact | All markets, high-frequency and systematic strategies |
| Breakout Trading | Captures trend initiation, clear entry signals | Confirm breakouts, wait for retests, use stops, align with trend | False breakouts, high volatility, requires discipline | Trending or volatile markets, stocks, forex, commodities |
| Momentum Trading | High profit potential, clear signals, short-term | Follow trend, use momentum indicators, watch divergence | Trend reversals, overbought/oversold, fast decision-making | Trending markets, forex, stocks, crypto |
| Mean Reversion | Predictable entries, effective in sideways markets, clear stops | Use Bollinger Bands, RSI, confirm with volume | Trend breakouts, timing, false signals | Range-bound markets, forex, stocks, commodities |
| Fibonacci Retracement | Predictive levels, improved timing, widely followed | Combine with trend, use confluence, focus on key levels | Not always accurate, subjective, needs confirmation | Trending markets, stocks, forex, commodities |
| Arbitrage Trading | Low risk, predictable returns, exploits inefficiencies | Monitor multiple markets, act quickly, account for costs | Execution risk, transaction costs, capital intensive | High-liquidity markets, forex, stocks, crypto |
| Pairs Trading | Market neutral, lower risk, statistical edge | Identify correlated pairs, monitor correlation, use statistical models | Correlation breakdown, execution risk, active monitoring | Correlated stocks, ETFs, forex pairs |
The most suitable trading strategy varies by individual. What works for one trader may fail for another. Finding your own approach involves understanding your personality, objectives, and lifestyle. Here are the key factors to consider:
Determine whether you are patient or impatient, aggressive or conservative. Your personality will guide whether you prefer long-term strategies like position trading or fast-paced strategies like scalping.
Clarify your goals. Are you trading for extra income, wealth growth, or full-time career? Your objectives influence risk tolerance, strategy complexity, and the markets you focus on.
Your available time affects the strategy choice. Full-time traders can monitor intraday markets, while part-time traders may prefer swing or end-of-day trading that doesn’t require constant attention.
Read more:How to start forex trading: A beginner’s guide with 7 key tips
Back testing is a critical step in developing a trading strategy. It involves testing your rules against historical data to see how the strategy would have performed in the past. This process helps traders identify strengths, weaknesses, and potential improvements before risking real money.
Risk management is one of the most critical components of successful trading. Even the best trading strategies can fail without proper risk controls. Top traders implement structured rules to protect capital, minimize losses, and maximize their gains.
Key Risk Management Techniques
Read more:Effective risk management in FOREX
Even the best strategies can fail if common mistakes are made. Understanding these pitfalls helps traders protect capital and improve long-term results.
By avoiding these mistakes, traders can improve consistency and performance, making their trading strategies far more effective.
Selecting the right trading platform is essential for executing your strategy effectively and efficiently. A suitable platform enhances your trading experience, provides necessary tools, and supports risk management.
Key Factors to Consider
RADEX is a platform suitable for all trading strategies, offering:
Traders are encouraged to open a RADEX MARKETS account to access these tools and start trading efficiently.
Read more:Top forex brokers to trade with in 2025
The best trading strategy depends on your personality, goals, and market conditions. No single strategy works for everyone. Experiment with different approaches to find what suits you best.
For beginners, trend trading, swing trading, or end-of-day trading are often recommended due to their simplicity, clear rules, and manageable risk.
Yes, but ensure they don’t conflict. Using complementary strategies on different markets or timeframes can diversify risk.
A guideline for trade duration or position sizing, depending on the context. It emphasizes discipline in entries, exits, and risk management.
No strategy guarantees a profit. Profitability depends on discipline, risk management, market conditions, and your trading skill.
Not necessarily. The best traders often use a few effective indicators and focus on price action, patterns, and risk management.
Additional tip: Copy trading
If you are unsure how to structure your own trading strategy, you can consider copy trading on RM SOCIAL, which allows you to follow experienced traders’ strategies.
October 03, 2025
The US government remains closed for business, but that did not stop the Dow, S&P 500 and Nasdaq from all hitting record highs yesterday. Artificial Intelligence was once again the driving force behind the rise in stock prices. OpenAI, the company behind ChatGPT, reached a valuation of $500 billion yesterday following an employee share sale, making it the most valuable startup in the world. Expectations are sky-high for the nascent industry, despite the fact that OpenAI, and many other companies like it, have never turned a profit. The government closure means we are unlikely to get our beloved NFP release later today, nor any time soon for that matter. With the prospect of mass layoffs and sweeping cuts on the table, talks between both sides remain icy.
Gold tried and failed to breach $3,900 per ounce over the last two days. Silver attempted a brief foray above $48 yesterday before thinking better of it. Platinum and palladium peaked earlier in the week but failed to sustain any momentum. All four metals are down so far this morning. Small signs of weakness perhaps, but not enough to call an end to the rally in precious metals just yet. Expectations surrounding the next FOMC meeting continue to favour another rate cut on the 29th of October, with FedWatch now pointing towards a 97% chance of a 25-bps adjustment.
October has historically been a good month for cryptocurrencies and so far, 2025 is proving no exception. Bitcoin reclaimed $120k yesterday and is up 5% already this month. Bitcoin dominance meanwhile is slightly down, meaning the wider alt market is faring even better. Cryptocurrencies have been somewhat stagnant over the past couple of months, not capturing any of the flows pouring into precious metals and even failing to match the performance of major stock markets. “Uptober” may just be the excuse some investors have been looking for.
October 03, 2025
As the clock struck midnight on Capitol Hill, the Senate had not managed to agree to a new funding bill, meaning all non-essential government functions have effectively shut down. Hundreds of thousands of government employees will be furloughed until further notice. Crucially for financial markets, the public bodies responsible for collecting and publishing economic data are no longer in operation, which means that there will be no NFP this Friday. However unlikely, it is possible that a deal will be reached over the coming day or two, but for now traders will have to navigate the charts without US economic data.
Many stock markets around the world ended Q3 on a high note yesterday. The third quarter was a roaring success for US indices, with the Dow Jones gaining 5% over the last three months, the S&P 500 climbing almost 8% and the Nasdaq Composite rising 11% over the same time frame. Such performances are all the more impressive given September’s reputation as one of the toughest months for US stocks. In the UK, the FTSE 100 also overperformed, closing the quarter 6.7% higher; meanwhile in Asia, the Hong Kong-based Hang Seng index, Japan’s Nikkei 225 and South Korea’s Kospi all finished 11% in the green.
Tech stocks provided the bulk of the buoyancy. Tesla (TSLA), Nvidia (NVDA), Apple (AAPL), Alphabet (GOOG) certainly had their time in the sun, but the hype surrounding AI also spilled over into the rank-and-file tech companies. Intel (INTC) roared back into life following share acquisitions by Nvidia and the US government, pushing its stock 50% higher in the third quarter. Investors who were savvy enough to invest in Seagate (STX) and Western Digital (WDC) meanwhile are laughing their way to the bank, as the humble data storage companies rose 64% and 88% respectively in Q3.
Accusations are once again being levelled at the ridiculous price-to-earnings ratios among some of the larger caps, particularly as entire sectors of the S&P 500 continue to be ignored. For now, hype is everything and investors are content to delay the inevitable rotation back into more defensive stocks.
Gold made modest gains yesterday but the optimism failed to spread to the broader precious metals market, with silver, platinum, palladium and copper all falling on the day. Gold and silver pushed higher this morning, with gold timidly advancing into unknown territory beyond $3,860 and silver extending to $47.50 per ounce, but buyers are not displaying as much enthusiasm so far today.
October 01, 2025
Эрсдлийн дохио : Худалдааны дериватив ба хөшүүрэг бүтээгдэхүүн нь өндөр түвшний эрсдэлтэй байдаг.
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