Forex trading can be an exciting and profitable activity, but it can also be risky. One way to reduce the risk is to use guerrilla trading techniques. In this guide, we will explain what guerrilla trading is and how you can use it to improve your trading results.
Let’s start now.
What is guerilla trading?
Guerrilla trading is an innovative strategy that makes quick, small profits by making minor transactions during a single session. A key component of this approach involves using limited time frames and acting like long-term investors instead – so you can get more bang for your buck.
How does guerilla trading work?
Guerrilla traders have many benefits when it comes to trading forex. Foremost, the major currency pairs typically have a very tight spread which makes them perfect for an all-hours trade like this one. You also get increased leverage at your fingertips – something not offered by equities brokers but invaluable in any market situation no matter how volatile or stable they may be considered as being on average over long periods of time. Check out hycm review in order to explore the reputable Forex brokers and highlight some benefits for yourself.
Note that Guerrilla traders need to be able to handle large risks and reap rewards.
The high leverage, which may reach 50 times your capital, is risky for an inexperienced trader but it also offers great opportunities if you know what to do with them correctly. That is the main reason why this trading method is recommended to traders with experience.
Features of guerilla trading:
Let’s go through a few features that guerilla trading offers:
technical analysis – Guerrilla traders use technical analysis to time their trades. They are fluent with tick charts or 1-minute charts that identify entry and exit points for each trade, making them an excellent choice in uncertain markets where quick reactions are key.
low commissions and spreads – Guerrilla traders are often focused on the most popular currency pairs, which means that their trades have low commissions and tight spreads. They seek out highly liquid markets with prominent positions in order to minimize risk when making profits off of unsuspecting victims who don’t know any better.
short-term timeframes – Guerrilla trading is all about risk management. The more time you spend in a trade, the greater chance that something could go wrong and lose your investment. That’s why traders here carry out trades in short-term timeframes.
small profits and small losses – Guerrilla traders are willing to risk only 10-20 pips on a single forex trade as opposed to scalpers whose objective may be double or even 25-50 padding. This means they can’t take risks more than 5-10 points at once which limits their maximum loss potential.
Conclusion:
Guerilla trading is a unique and powerful way to trade the markets. By understanding how it works, you can use its features to your advantage in order to make more profitable trades. Remember, guerilla trading is not about winning every single trade – it is about making consistent profits over time by taking calculated risks. With that in mind, put these tips into practice and start profiting from guerilla trading today. To find the regulated environment see trade360 review.
Author
George Rossi
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.
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