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8 Best Forex Trading Strategies in Kenya

The 8 Best Forex Trading Strategies in Kenya revealed. We tested the best forex trading strategies for Kenyan Traders.

This is a complete guide to forex trading strategies in Kenya.

In this in-depth guide you’ll learn:

  • What is a Forex Trading Strategies?
  • Which forex trading strategies is best for Kenyan Beginner traders?
  • Which trading platforms can you use with M-PESA?
  • How to compare the best trading strategies against each other. 
  • Which brokers offer a sign-up bonus for first-time traders in Kenya? 
  • Which brokers offer a low minimum deposit of $5 (583 KES) to start trading? 
  • What is a forex trading plan?
  • What strategy should you follow for consistent profits?

 

And lots more…

So if you’re ready to go “all in” with the best-tested forex trading strategies

Let’s dive right in…

Updated : August 31, 2022

What is a trading strategy?

👉 A forex trading strategy is a methodology or process that Kenyan traders use to decide whether to sell or purchase a financial item at a certain moment.

 

👉 Traders might base their trading strategies on either technical analysis or fundamental, news-based events. The Kenyan trader’s strategy consists of signals that drive them to buy or sell a financial item.

1. Scalping

👉 Scalping in the foreign exchange market refers to the practice of trading many currency pairings in a single day to make small, but frequent gains. To profit from the many tiny price changes that occur during the forex market day, “scalpers” aim to make several transactions.

 

👉 Although the goal of scalping is to take advantage of very tiny price fluctuations (about 5-20 pips each transaction), profits may be boosted by trading larger lots.

 

👉 Most Forex scalpers use leverage to increase their position size, turning even a minor price movement into a significant profit. Manual or automatic systems may both be used for Forex scalping.

 

👉 A trader using a manual technique would sit in front of a computer, in search of buy and sell indications. An automated trading system is one in which the trading software is instructed to buy and sell at predetermined times in response to user-specified input.

 

👉 Forex scalping has the same inherent risks as any other trading strategy. Rapid accumulation of wealth is possible via a series of successful deals, but an equally rapid accumulation of debt is possible through inexperience or poor decision-making on the part of the trader.

 

👉 Many transactions, even if only risking a tiny sum each, may lead to a substantial loss if many of the trades turned out to be unsuccessful.

 

👉 In terms of determining entry and exit points, the first stage in developing any technically-based strategy is to recognize the trend. Indicators such as the moving average are often used by scalpers to confirm the trend.

 

👉 Traders could get a better sense of the larger picture by applying these trend levels to longer periods. Bands of support and challenge will be established at these levels. Smaller time frames might be used with oscillators like the relative strength index to try scalping within this range.

 

👉 Stops are usually set a few pip distances out to protect traders from unexpectedly big market swings against their positions. The Moving Average Convergence Divergence (MACD) indicator is another helpful tool that traders may use to begin and exit trades.

2. Day Trading

Day Trading

👉 The term “day trading” refers to the process of purchasing and selling currency pairs within a brief time, usually in a single day.

 

👉 Kenyans typically aim for a little gain from each deal, and they let profits grow over time via compounding. Day trading thrives on uncertainty.

 

👉 Day traders’ earnings are overly sensitive to even slight changes in the prices of currency pairs or the market. They favour currency pairs that see large intraday swings in price, whether due to a favourable or negative earnings release, news, or market emotion overall.

 

👉 In addition, they like highly liquid currency pairs, which enable them to enter and exit positions with little to no impact on the currency pair’s price.

 

👉 Day traders aim to benefit from price fluctuations by buying currency pairs that are appreciating and short-selling currency pairs that are depreciating.

 

👉 To capitalize on shifts in investor opinion, they may make many trades in the same currency pairs during the day. Retail forex traders are heavily represented in the day trading market. The profits of an investment may materialize rapidly.

 

👉 The problem is that not everyone can benefit from trading in such a short timeframe. Those with a full day to devote to market research and trade monitoring will benefit the most from this strategy.

 

👉 The most popular day trading strategies include:

➡️ News trading

➡️ Trend Trading

➡️ Momentum Trading

➡️ Breakout Trading

 

👉 It is also crucial to any forex day trading strategy to have a firm grasp of charts and order types. Because of the short timeframe in which day trading occurs, prompt decision-making is essential.

 

👉 Traders need to be proficient chart readers so that they are not slowed down by the task. Similarly, traders should have a firm grasp of the various order types available to them.

 

👉 This is true for both entering and exiting the market. Traders rely on orders to assist them to choose when to enter a trade for maximum profit and when to exit a deal to minimize losses. An insufficient understanding of order types may delay a trader down, which costs money.

3. Position Trading

Position Trading

👉 Position traders, often known as “buy and hold” traders, are active participants in the foreign exchange market who hold onto their holdings for an extended period.

 

👉 Their reasoning is based on macroeconomics and long-term charts, and they participate in every market, including the volatile FX market. The essence of position trading is betting on a big trend in a particular currency pair, commodity, or stock market index.

 

👉 These investors are not worried about things like price changes or pullbacks. Instead, they focus on achieving a near-total trend capture, preferably via patterns that last for many weeks, months, or even years.

 

👉 This market perspective appeals to traders since it minimizes the time and effort needed to participate in the trading process. Once the position trader has done the necessary research and decided how to trade the commodity, there is nothing more to do except enter the transaction.

 

👉 They keep an eye on the position just in case anything large happens, but because little price swings do not affect the overall picture, the position requires little attention.

 

👉 When doing a position trade, as opposed to a day trade, traders do not need to keep constant tabs on the market. Even while swing trading is more passive than day trading, it still requires weekly position adjustments and near-constant monitoring.

 

👉 Position traders often engage in a small number of transactions annually, focusing instead on making only the most consequential shifts in their portfolios. While day traders may make thousands of deals annually, swing traders may make just hundreds.

 

👉 To have a complete picture of the market to determine entry and exits, position traders might benefit from studying key levels on weekly and monthly charts. Technical analysis, like the other methods, could be used to determine when to enter and quit a trade.

4. Price Action Trading

Price Action Trading

👉 Market participants that engage in “price action trading” analyse past price data to develop technical trading methods.

 

👉 Price action is useful both on its own and in combination with indicators. Fundamentals are seldom employed, although economic developments are sometimes used as a supporting argument.

 

👉 In addition to the methods, there are a plethora of others that may be classified as price action tactics. Price action trading is a method of trading that relies on technical analysis of price movements over time.

 

👉 Price action is a method that may be used on its own or in combination with an indication. Though fundamentals are seldom invoked, economic happenings are sometimes utilized as a supporting argument.

 

👉 In addition to several other trading methods, several others could be classified as price action tactics.

 

👉 Price Action entry and exit triggers can easily be determined when Kenyans use these methods:

➡️ Oscillators

➡️ Trend Identification

➡️ Indicators

➡️ Candle Wicks

➡️ Fibonacci Retracement

6. Swing Trading

Swing Trading

👉 The goal of wing trading, as a trading strategy, is to reap profits in a short amount of time.

 

👉 Unlike day trading, where the goal is to turn a profit by the end of the day, swing trading has longer-term goals. Also, this is not a strategy that can be set and forgotten for months or even years.

 

👉 Swing traders are interested in making trades within a brief time, often a few days to a few weeks. Once again, some traders may err on the shorter end of that timescale, while others will have a more long-term perspective.

 

👉 These investors rely heavily on technical analysis in their pursuit of profitable trades. That is, they are looking for opportunities by tracking price movements and seeing patterns in the data. Swing trading is widely used in the forex market.

 

👉 A swing trader’s focus is on short-term price fluctuations rather than the worth of a currency over the long run. Swing trading benefits from the FX market’s strong liquidity, narrow spreads, and 24-hour availability (during market hours).

6. Carry-Trade

Carry-Trade

👉 The average returns from carry trading have been positive since the 1980s, but it has only been in the last decade that the strategy has gained traction among retail investors and traders.

 

👉 Simply defined, a currency carry trade is a method of taking advantage of interest rate differentials between different currencies.

 

👉 Traders using this method aim to profit from the spread between the two rates, which, depending on the degree of leverage used, could be significant.

 

👉 Earning interest is crucial to the success of the carry trading strategy. For long carry trades, earnings compound daily, with a quadruple rollover granted on Wednesdays to account for weekend rollovers.

7. Trend-Trading

Trend-Trading

👉 Typically, an oscillator (Relative Strength Index, or CCI) is used to identify entry positions, and a favourable risk-reward ratio is used to determine exit points.

 

👉 For example, if a trader sets a stop loss at a certain distance, they must either stay at or go beyond that distance to keep the risk-reward ratio favourable. If the stop loss level were 50 pips away from the entry point, the take profit level would be placed at least 50 pips away from the entrance point.

8. Range Trading

Range Trading

👉 Identifying overbought and oversold currency pairs is a key part of the range trading method in foreign exchange trading, which is also referred to as areas of support and resistance. Range traders purchase during oversold/support times and sell during overbought resistance periods.

 

👉 Range trading can typically be applied at any time, but it is most successful when the currency market lacks direction with no obvious long-term trend in sight.

 

👉 When the market is trending, range trading is not as effective, particularly when the market’s bias is ignored.

 

👉 The entry/exit points on range trading can be determined by using the Relative Strength Index (RSI), Commodity Channel Index (CCI), and stochastics. Kenyans can also use price action along with oscillators to validate their range-bound signals or breakouts.

How to create a Forex Trading Strategy in Kenya Step-by-Step

👉 Making your initial trading strategy may be simple, but the difficult part is realizing that a successful plan is a process, and it may take an exceptionally long time to refine your method. There is no “one size fits all” trading strategy or holy grail that will ensure success.

 

👉 A technique that works for one forex day trader may not necessarily work for another, so there is a lot of trial and error involved. Too many new forex traders give up too soon because they have lofty expectations, are impatient, or lack the discipline to stick to their trading plan.

 

👉 You may use the methods listed below to create a fundamental forex trading strategy.

 

Form a market philosophy

👉 Understanding how the market works is necessary before you can begin creating a trading strategy. Reading about the forex market, comprehending how it works, and knowing what it involves will help you develop a market mentality.

 

👉 Even if you favour one over the other, make sure you educate yourself on both technical and fundamental analysis. Make sure you are aware of the supply and demand for currencies to avoid falling for get-rich-quick frauds.

 

👉 You must give your philosophy the attention it deserves since it will determine every action you do after this one. Keep things as simple as you can; this is one of the most important rules to follow. By doing this, you can stay away from complicated tactics that can fail.

 

Understand the Forex Market

👉 If you decide to trade forex, you must ensure that you fully comprehend the forex market’s inner workings, including how prices are set, what causes changes in exchange rates, etc.

 

👉 Although you should have a general awareness of all markets, if you solely want to trade FX, you should not spend too much time learning about other asset classes.

 

Choose your Timeframe

👉 You must choose the period that you will trade according to before you begin to get expertise in trading. You may choose by trying each of the many day trading methods one at a time to see which one works best.

 

👉 If you fail to do this, you will not know which trading style will suit your needs or trading objectives better, whether you should day trade, swing trade, or position trade.

 

👉 You may start by thinking about your situation, including if you have the means to follow the market for lengthy periods, whether you have the time to sit down and trade at times, when, and so on.

 

👉 You will get quick feedback while trading on short periods, which will cut down on the amount of time you need to learn. Intraday price action tactics will still provide you with valuable knowledge even if your periods wind up being longer.

 

👉 You might start with end-of-day charts to aid you with your timeline if you are unable to monitor the market for lengthy periods. You will learn enough if you put out consistent, arrogant, and dedicated effort to select which day trading technique is best for your set of circumstances.

 

Indicate your Entry Triggers

👉 You should indicate an objective entry trigger, which establishes the precise moment at which you must join the market, even with the ideal market setting. By reducing the amount of time you need to consider if it is a good moment to trade, you will have more chances to do so and make money.

 

👉 Both bar and candlestick patterns are appropriate triggers for day trading, and oscillators like the relative strength index (RSI) and stochastics are ideal choices if you choose to add indicators.

 

👉 You must make sure that you are aware of the various indicators, their functions, and how they might help you create a forex day trading strategy.

 

Plan Your Exits

👉 Knowing when to enter a trade and when to quit it are both critical skills. This may be done by locating and using the appropriate indications on your charts to indicate at which price point you must exit the position, much as with entry triggers.

 

👉 Regardless of whether you have generated money, you must know when to abandon the market since it is unpredictable, and things may change in a matter of seconds.

 

Define Your Risk Exposure

👉 Risk management is essential while trading forex, particularly when engaging in day trading. It is crucial to trade to increase your earnings while lowering and managing your risk.

 

👉 Position size is the key tool you can use to make sure you are limiting your risk for any trading situation.

 

Write Your Trading Rules

👉 It is essential to have your trade setup on paper, even if you can recall it from memory. This enables you to reflect on your actions, adjust, note successes, and gather knowledge from errors or failures.

 

👉 One of the most crucial phases you must complete while developing a trading strategy is maintaining records, particularly if you want to create a system that is workable, long-lasting, and profitable.

 

Backtest the Strategy

👉 You can backtest a strategy after it is documented. Even though it may seem boring, this major step could prevent you from making errors in a real-time trading situation when your cash is on the line. You can create, enhance, and perfect your plan via testing and backtesting.

 

Improve Your Strategy

👉 Since your initial trading strategy is a living, evolving thing, you should not expect it to be lucrative right away. Your trading strategy will become better as you gain experience and expertise, or you can decide that the one you now use is unnecessary and change it.

 

👉 Test your trading approach in the future and make notes on what you see in the market. Make careful to keep track of your transactions and maintain the integrity of your chart pictures.

The Best Forex Brokers in Kenya

👉 In this article, we have listed the best Forex brokers which offer spread betting platforms to traders in Kenya. We have further identified the forex brokers that offer additional services and solutions to Kenyan traders.

 

Best MetaTrader 4 / MT4 Forex Broker in Kenya

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, FSA

Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

Total Pairs

55+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, AvaTrade is the best MT4 forex broker in Kenya. AvaTrade provides over 1,260 financial products for MetaTrader 4 trading. AvaTrade has received various industry accolades in the previous 16 years.

 

👉 AvaTrade offers Kenyan traders a transparent trading environment and the option of converting their live account into an Islamic account with halal trading conditions.

 

Best MetaTrader 5 / MT5 Forex Broker in Kenya

Overall Rating

Min Deposit

USD 5 / 578 KES

Regulators

CySEC, FSC, FSCA

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

No

Total Pairs

50+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, HF Markets is the best MetaTrader 5 forex broker in Kenya. Social traders could make use of HF Markets’ sophisticated copy trading features and the platform’s rich educational resources. Over 1,200 CFDs, including Forex, are available for trading on MetaTrader 5 in Kenya.

 

Best Forex Broker for beginners in Kenya

Overall Rating

Min Deposit

USD 0 / 0 KES

Regulators

IGRs

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

80

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

on IG Group’s website

👉 Overall, IG is the best forex broker for beginners in Kenya. Kenyan beginners are given access to the IG Academy when they join this award-winning multi-asset broker.

 

👉 Kenyans have access to over 19,000 markets and a choice between trading platforms designed for all types of traders.

 

Best Low Minimum Deposit Forex Broker in Kenya

Overall Rating

Min Deposit

USD 5 / 584 KES

Regulators

IFSC, CySec, ASIC

Trading Desk

Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform

Crypto

No

Total Pairs

57

Islamic Account

Yes

Trading Fees

No (Just spread) 

Account Activation Time

24 Hours

👉 Overall, XM is the best Low Minimum Deposit Forex Broker in Kenya. XM has 2.5 million subscribers in 196 countries.

 

👉 XM has become a popular online multi-asset forex broker, providing over a thousand CFDs and attractive spreads with a 590 KES minimum deposit.

 

Best ECN Forex Broker in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

Trading Desk

MetaTrader 4, MetaTrader 5, cTrader and TradingView

Crypto

No

Total Pairs

60+

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128

👉 Overall, Pepperstone is the best ECN forex broker in Kenya. Pepperstone offers 70 FX markets, 1,000 CFDs, 19 cryptocurrencies, and more.

 

👉 Pepperstone provides superior ECN transaction execution, with rates from leading liquidity sources.

 

Best Islamic / Swap-Free Forex Broker in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

CySec, FSCA 

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, FXTM is the best Islamic / Swap-Free forex broker in Kenya. Depending on your account, FXTM offers immediate and market execution. FXTM lets Muslim traders convert most live retail accounts to Islamic ones.

 

Best Forex Trading App in Kenya

Overall Rating

Min Deposit

USD 0 / 0 KES

Regulators

ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA

Trading Desk

Metatrader 4 and Metatrader 5

Crypto

Yes

Total Pairs

45

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, OANDA is the best forex trading app in Kenya. OANDA has a high trust score and an award-winning, easy-to-use mobile trading interface with 33 technical indicators, 13 drawing tools, and multiple timeframes.

 

Best Kenyan Shilling Trading Account Forex Broker in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

107

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, Exness is the best Kenyan Shilling trading account forex broker in Kenya. Exness is a worldwide leader in retail foreign exchange services, partnerships, and business solutions.

 

👉 Exness is one of the few brokers that permit accounts denominated in several currencies, allowing Kenyans to create accounts using KES as their preferred currency.

 

Best Lowest Spread Forex Broker in Kenya

Overall Rating

Min Deposit

USD 1 / 116 KES

Regulators

IFSC, FSCA (South africa), ASIC, CySEC

Trading Desk

MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading platform.

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

$140 (16 373 KESFind out More)

Account Activation Time

24 Hours

👉 Overall, FBS is the best lowest spread forex broker in Kenya. FBS is one of the few brokers that provide Cent and Micro accounts in addition to four more sophisticated account categories.

 

👉 FBS provides spreads beginning at 0.3 pips on the Cent Account while Kenyans may anticipate spreads of zero pips on the Zero Account.

 

Best Nasdaq 100 Forex Broker in Kenya

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

CySEC, FCA, FSA, FSCA, Labuan FSA

Trading Desk

Meta Trader 4

Crypto

Yes

Total Pairs

62

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, Tickmill is the best Nasdaq 100 forex broker in Kenya. Tickmill provides Kenyan traders with access to the Nasdaq 100 via three retail investor accounts with favourable trading conditions.

 

👉 Tickmill also gives Kenyans access to MetaTrader 4 and 5, which equips them to engage in a competitive CFD trading environment for Indices.

 

Best Volatility 75 / VIX 75 Forex Broker in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

Trading Desk

MetaTrader 4, MetaTrader 5, cTrader and TradingView

Crypto

No

Total Pairs

60+

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128

👉 Overall, Pepperstone is the best Volatility 75 / VIX 75 forex broker in Kenya. Pepperstone is one of the few brokers who provide access to the Volatility 75 Index as a traded product. Pepperstone is a multiple-award-winning broker.

 

👉 Pepperstone provides Kenyans with the most competitive trading conditions and robust trading platforms.

 

Best NDD Forex Broker in Kenya

Overall Rating

Min Deposit

USD 100 / 11660 KES

Regulators

CySec, FSC, FSA, BaFin, NFA

Trading Desk

MetaTrader 4 , MetaTrader 5

Crypto

Yes

Total Pairs

50 Forex Pairs and 20 Crypto Pairs

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, BDSwiss is the best NDD forex broker in Kenya. BDSwiss is a No-Dealing-Desk broker that directs all orders via trustworthy liquidity sources.

 

👉 BDSwiss is one of the few brokers with an active social media presence and is well-regulated.

 

Best STP Forex Broker in Kenya

Overall Rating

Min Deposit

USD 5 / 578 KES

Regulators

FCA UK

Trading Desk

None

Crypto

Yes

Total Pairs

28

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, OctaFX is the best STP forex broker in Kenya. OctaFX is a favourite among scalpers who may pick between STP and ECN pricing due to its quick transaction executions.

 

👉 OctaFX’s copy trading services have a minimum initial commitment requirement and are open to anybody.

 

Best Sign-up Bonus Broker in Kenya

Overall Rating

Min Deposit

USD 1 / 116 KES

Regulators

CySEC, FSC

Trading Desk

Metatrader 4

Crypto

Yes

Total Pairs

4

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, InstaForex is the best sign-up bonus broker in Kenya. InstaForex is a reputable and well-regulated broker that gives new Kenyan traders who open trading accounts a $1,000 Sign-Up No-Deposit Bonus.

Why is it important to create a Forex Trading Strategy?

Why is it important to create a Forex Trading Strategy?

👉 Any new trader is taught that trading without a plan puts them at risk, regardless of the asset class or market they choose to trade. The forex market is always in motion, and prices can change quickly, resulting in either a trader’s profit or loss.

 

👉 The odds of a trader generating money are slim without a thorough study and reliable tactics. A trading strategy is a plan that incorporates several significant elements.

 

👉 It helps the trader stay focused on their goal by giving them a reasonable target and a firm understanding of their existing circumstances, requirements, constraints, and other factors.

 

👉 A trading strategy guarantees that traders establish and retain discipline when trading. It stops traders from taking on more risk than they can bear and aids in the proper management of their trading mindset, keeping them in the game.

 

👉 Additionally, it makes sure that traders continue to trade even in the face of failure and assists them in learning from their errors and failures so that, at the end of the day, they become better traders.

Consideration for Kenyans when they create a trading strategy

Consideration for Kenyans when they create a trading strategy

👉 The first stage is to educate yourself enough on forex trading, including how trading techniques operate, how to apply them, and when and how to backtest them.

 

👉 The most crucial thing for Kenyan traders to keep in mind is that, although using the same approach, no two traders are the same.

 

👉 Forex trading is not a get-rich-quick program and Kenyan traders who think this are setting themselves up for failure and substantial monetary loss. There is no holy grail or fool-proof trading method that will guarantee profits.

 

👉 Most forex traders begin by using a simple and all-encompassing trading strategy. approaches that demonstrate, for instance, how a currency pair often bounces back from a certain support or resistance level.

 

👉 Trading signals get more accurate overall when traders choose to add additional components as they become more confident in the market. For instance, a certain pips-based retracement % generated from a specific support level would be necessary.

 

👉 Kenyan traders should consider the fact that an effective forex trading strategy includes many essential components:

➡️ Market selection: Whether trading forex on the Kenyan market, stocks on the Nairobi Securities Exchange, or any other financial instrument, Kenyan traders must pick the financial instrument they want to trade and invest time studying all they can about that asset.

➡️ Position size is a crucial factor in deciding how much risk a trader is ready to accept in each transaction.

➡️ Entry points – Traders must establish rules for when to start a long or short position in a certain currency pair.

➡️ Exit Points – Traders must adhere to certain rules when exiting long, short, and losing positions.

➡️ Overarching Trading Strategies – Traders should have a strategy in place before engaging in currency pair trading that covers everything from how to buy and sell the currencies to the execution technology to utilize.

➡️ Kenyan traders could choose to use automated trading systems in applications like MetaTrader. Traders may also use these tools to evaluate the effectiveness of their prior trading strategies.

Conclusion

👉 Forex traders have endless opportunities in the way that they approach the markets and financial instruments.

 

👉 There are no one-size-fits-all trading strategies and Kenyans must determine what their needs and objectives are to decide on the perfect trading strategy for them.

FAQ

Is there a 100% winning strategy in forex?

No, no trading strategy will guarantee profits. There is also not a single strategy that will work for all traders.

 

What is the easiest forex trading strategy?

The easiest forex trading strategy is “The Pin Bar.” The reason behind it relates to its easy identifiable pattern.

 

What is the most profitable forex pair to trade?

EUR/USD is the most liquid forex pair that is traded in the market daily, making it one of the most profitable as it is easy to buy and/or sell.

 

Which trading strategy is the best for beginners?

Trend trading is one of the best trading strategies recommended for beginners. The reason behind it relates to the fact that any financial instrument has three basic movements namely growth, decline, or sideways/flat.

 

What time is the best to trade forex?

While the forex market operates 24/5 the best time to trade is 8 am until noon Eastern Standard Time. During this time, the United States and London sessions are active, representing the most trading volume in the market.

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