In my opinion, I would define the most profitable forex strategy as one that involves:
Buying a basket of currencies, making adjustments based on specific conditions and using the difference to buy or sell a single stock using the different currency (or multiple currencies).
I’ve found that it is best to buy foreign currencies, as they are more volatile than domestic, while also offering more tax benefits. However, not everyone is suited to this strategy, and it does have its limitations.
The main thing to remember is that it is not necessary to buy a specific currency in order to make a profit. It is enough to buy a large amount of different currencies (over 50 each!). You are required to use this knowledge and use it for a profit.
If you do not have a lot of currency, and you are buying to buy and sell, you may experience some problems. The way I explain it is like this:
Say you start out with a basket of currencies and your basket is 20 of 1 currency, and you want to buy another 1/20 of them or sell one at a discount to your basket. Now, you think it is worth it. If you did not understand it, you may try and buy $20 (at an average exchange rate in 20 years) worth of a country today and sell $1,000 worth tomorrow.
Of course the exchange rate in 20 years won’t be that much different from the average, just because the currency has changed significantly. However, the way you did it is different. You didn’t stop there. You then bought $20 worth of the new country today and sold $90 worth today. With the new exchange rate, the price of the other $90 (or more) is now discounted by the currency you bought it for. And you are back in the position you started out in, with that original basket. So, if you want to get into this strategy, you first have to understand how to do a net worth exercise.
Now, let’s backtrack to the basket of currencies. Now we are buying 100 of each currency and then buying 20 from the basket and selling 20 to the basket of currencies. If the exchange rate changes, the exchange rate can change by even more. So, if you decide that it is worth trying and want to try it, and you need a place to stop if things go wrong, buy your 20 in foreign currency and try again.
The whole thing is the same, only
accumulation swing index trading system, swing trading stock picking services, definition of swing trader, best books on swing trading options, swing trading vs day trading which is more profitable goats in pajamas