One of the online Forex Trading dilemmas facing new and experience Forex traders is the multitude of technical analysis and fundamental analysis trading strategies and techniques available. Many of these techniques work better in a trending or a trading market. It is important to be aware of all the trading approaches and aligning these with your own personal preferences and trading profile. Below are the different trading approaches identified by Expert-4x.

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1 The "with the trend" trader
This trader is looking for a lower risk, going with the flow type of feeling when trading. It has been established that trading with the trend is more rewarding and reliable than other approaches. Most trading techniques or black box
systems are with the trend systems. Expressions such as "let the trend be your friend" or "go with the flow" seem to fit quite nicely into most people's philosophy and psychology.

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The with the trend trader will wait for a trend to be established and then only enter into trades that are in the same direction as the trend and ignore any trends that are in an opposite direction. The key requirement of this method is
the establishment of what the trend is. This is not always as easy as it sounds or would appear. Many indicators give exactly opposite trend signals depending on what time scales you are looking at.

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2 The retractment or retracement trader
The philosophy behind this trading approach is that any movement in the currency price, which is excessive and unsustainable, is bound to retract or correct itself sooner or later. The excessive movements are measured by the sheer rate of movement over a short time span, over sold / bought conditions, moving average line gaps, new highs or lows, strong resistance and support areas etc.

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The philosophy and psychology behind this approach appears to be almost directly opposed to the "with the trend trader", but this approach is only in respect of method of entry. When the entry is made, a "with the trend" approach is adopted until the transaction is terminated.

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This is a high risk, high return approach which results in a high percentage of successful transactions but requires very big stop losses should the transaction be entered into too soon. This approach requires the use of multi time frame confirmations and experience to succeed but is very rewarding. Often fundamental information results in a trend change.

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3 The Breakout Trader
Traders who wait for low volatile markets or market opening jumps or economic information announcement days or major news announcement breakouts are breakout traders.

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This is a very opportunistic approach and the market needs to be studied very carefully to spot these opportunities. These traders rely a lot more on the market's reaction to fundamental information than technical indicators, although technical indicators can be used to confirm the breakout climate and the possible strength of the breakout.

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4 The Price pattern trader
The Price pattern trader uses the breakouts from well-established price formations and trend line violations as their entry criteria. These breakouts can be price continuations or reversals.

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The philosophy and psychology behind this type of trading is that should the price move in a certain direction which confirms a trend-line violation or price pattern completion it is likely that the move will be a considerable one and
worth entering into.

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5 The fundamental information trader
This trader interprets the economic, political and any other news and bases trades on the anticipated impact on currencies. There are many Internet based services providing ongoing minute by minute news, which impact currencies, as a standard service to clients. TV stations such as CNN and Bloomberg give excellent coverage in this respect. Most major moves in the market occur as a result of favourable or adverse news. The problem is getting the news timeously so that action can be taken. Most news has already been discounted in the market or the impact is so great that the jump has already occurred, by the time the trader hears the news.

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6 The multi-skilled trader
This trader adopts the approach of scanning the market and news for any potential opportunities that may exist during the times that he trades. This trader is skilled in all the mentioned approaches and uses all or most of the approaches to confirm a trade.

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CONCLUSION

One has to find an approach and a trading strategy that fits your personality, dedication, discipline levels, personal circumstances and resources. There are success stories of specialist traders following one approach or even only one technique, as well as traders using all the above approaches.