If you are looking for the best currency strategies, you will find two enclosed which are easy to learn and apply and can make you big profits – Let's take a look at them in more detail.

Before we start, lets look at mistakes many traders make, in terms of their currency trading methods and what you need to have in yours to win.

Many traders try and over complicate their currency trading strategy and try and think the more complicated it is the better but this is not so – simple strategies work best and always will and the reason for this is: If you make a system to complicated, it will simply have to many elements to break, so don't work harder than you need too. Also forget about science having a place in the market, because markets don't move to science they move to the odds and to win, you should not try and predict which is really hoping or guessing – simply trade the odds and you will do just fine.

You can implement the strategies we will look at below, with just simple trend lines and a few momentum indicators to time your trades (we like the stochastic and RSI), an indicator to judge volatility ( we like Bollinger Bands for this) and then, you will have a simple robust trading methodology for bigger currency trading profits.

Currency Trend Following

Currency trend following is one of the methods the pro traders use but the novice normally doesn't bother, despite the fact that it's highly lucrative and the reason for this is currency trends last a long time. These trends can be several weeks or months in duration and if you get in to these trends and hold them, you can make a lot of money.

Currency trend following is not hard to do all you need is to make sure that you establish the long term trend and then use a proven method to enter it and to get in on all the big trends there is no better methodology than breakout trading. All bullish trends start by breaking to new market highs and continue there trend by doing so – look up breakout trading, use it to long term trend follow currencies and you have a time efficient and lucrative way to make money.

While holding long term trends requires discipline and patience, it is simply the best way to make profits with the minimum of time spent on your currency trading strategy.

Currency Swing Trading

Currency swing trading suits the novice trader because it requires less discipline than long term trend following, as profits and losses come quickly and in addition, its fun and highly profitable.

To become a successful swing trader is easy all you need to do is to look for the market to become overbought in the short term or oversold and then look to sell into overbought levels and buy into oversold levels and then take your profit as prices come back to fair value.

Prices will always spike short term away from fair value and become overbought and oversold and they do this because the human emotions of greed and fear always push prices to far in the short term and your aim is to use this recurring phenomenon for profit.

If you see a currency market spike up for example, check momentum and volatility to see how overbought it is and then look for a level of resistance above it and look for it to hold – If it holds and momentum turns down, you issue a sell trading signal and you would of course, do the opposite in an oversold market. Swing trading is very simple but don't let its simplicity fool you, because successful swing traders make a lot of money.

Final Words

The two strategies above, can be used on there own, or you can combine them together and hold a long term trend following position and swing trade within the trend. I love this method of trading because you are active within the trend and if you do it correctly, you can maximize your profits while at the same time, keeping draw down to a minimum.