Best tactics for forex trading 2025. Analysing the most common trading tactics

18, Apr - BLOG

Forex trading requires not only knowledge of basic principles, but also the application of effective tactics for risk management, market analysis and decision making. In this article we will look at the five most popular Forex trading tactics, their features, advantages and disadvantages, as well as the conditions in which they work best.

 We also recommend reading the article: "Review of the best trading platforms for Forex 2025"

1. Scalping

Scalping is a short-term trading tactic where traders open and close many trades in a short period of time (usually a few seconds to minutes). The goal of scalping is to make a small profit on each trade, which is totalled up by the end of the day.

Key features:

• Work on small timeframes (M1-M5).
• Use of minimum spreads and high liquidity.
• Requires quick reaction to price changes.

Benefits:

• High frequency of transactions allows you to receive a stable income.
• Suitable for traders who can devote a lot of time to market monitoring.
• Minimal risks due to short time of holding positions.

Disadvantages:

• High commissions and spreads can eat up potential profits.
• Requires good discipline and control over emotions.
• Not suitable for beginners because of the need for accurate calculation of each order.

Conditions of use:

Works best on pairs with low spreads (e.g. EUR/USD, GBP/USD).

Requires a quality trading platform and a reliable broker with fast order execution.

2. Day Trading

Day trading is a tactic where all positions are opened and closed within one trading day. Traders seek to profit from larger price movements than in scalping.

Key features:

• Work on H1-H4 timeframes.
  Analysis of key support/resistance levels.
  Using technical indicators (e.g. RSI, MACD).

Benefits:

• No need to hold positions at night, which reduces the risk of unexpected news.
• Possibility to make significant profits from large price movements.
• Suitable for traders who have access to the market during the day.

Disadvantages:

• Requires constant monitoring of the market.
• Can be psychologically stressful due to the need to make quick decisions.
• Risk of a series of losing trades.

Conditions of use:

Works well on highly liquid pairs (e.g. EUR/USD, USD/JPY).

Requires qualitative analysis of news and fundamental factors.

3. Position Trading

Position trading is a long-term strategy where positions are held for weeks, months or even years. It is based on following global trends and fundamental analysis.

Key features:

• Work on large timeframes (D1-MN).
• Analyse economic indicators, political events and interest rate changes.
• Using trend indicators (e.g. Moving Averages, Parabolic SAR).

Benefits:

• Minimum number of trades reduces commissions and spreads.
• Suitable for traders who do not want to constantly monitor the market.
• Possibility to make significant profits from long term trends.

Disadvantages:

• Requires patience and the ability to tolerate short-term price fluctuations.
• It can be difficult to manage capital in case of a series of losing days.

Conditions of use:

Ideal for trending markets.

Requires a deep understanding of fundamentals.

4. Swing Trading

Swing trading is a medium-term tactic where positions are held for a few days or weeks. It is based on finding trend reversal points and using these moments to enter and exit trades.

Key features:

• Work on H4-D1 timeframes.
• Analysis of wave patterns (e.g. Elliott) and Fibonacci levels.
• Using protective orders (stop-loss and take-profit).

Benefits:

• Good balance between the frequency of trades and the time of their retention.
• Possibility to earn on corrections within the trend.
• Less stress than scalping or day trading.

Disadvantages:

• Requires a good understanding of wave patterns and a level of market analysis.
• It may be difficult to determine the exact entry and exit points.

Conditions of use:

• Works best on pairs with clear trends (e.g. EUR/USD, AUD/USD).
• Requires regular market monitoring to adjust positions.

5. News Trading

Trading on news is based on the market's reaction to important economic events such as the release of employment data (NFP), changes in interest rates or the release of inflation reports.

Key features:

• Analyse the economic calendar to identify important events.
• Opening positions immediately after a news release or waiting for price stabilisation.
• Using protective orders to minimise risks.

Benefits:

• Ability to quickly make a significant profit on sharp price movements.
• Does not require long analysis of charts.
• Suitable for traders interested in fundamental analysis.

Disadvantages:

• High levels of volatility can lead to large losses.
• Fast decision making is required, which can cause stress.
• Need to understand the impact of news on specific currency pairs.

Conditions of use:

Works best on news-sensitive pairs (e.g. USD/JPY, GBP/USD).

Requires regular use of the economic calendar.

Recommendations on the choice of tactics

The tactics you choose depend on your goals, fitness level, and preferences. Here are some recommendations:

For beginners:

• Scalping: Suitable if you are willing to devote a lot of time to the market and want to start with small steps.
• Day Trading: A good option for those who want to learn how to analyse market movements without a long-term commitment.

For experienced traders:

• Position Trading: If you are willing to wait and analyse long-term trends.
• Swing trading: For those who want to combine medium-term strategies with precise entries and exits.

For fans of fundamental analysis:

Trading on news: If you are interested in economic events and their impact on the market.

Conclusion

Each of these tactics has its own unique characteristics and requirements. To choose the right one for you, it is important to understand your goals, your level of training, and your risk appetite. Here are some tips for successful use of the tactics:

• Test on a demo account: Before using a tactic for real money, test it on a demo account.
• Use protective orders: Stop loss and take profit will help to minimise losses.
• Follow the news: Even if you use technical analysis, always consider the fundamentals.

Forex offers many opportunities to implement different tactics, but success depends on your ability to adapt to changing market conditions. Be flexible, educate yourself and remember: every tactic requires practice and experience!