Things to remember about the EMA 200 Forex trading strategy
If you plan on using the EMA 200 Forex trading strategy, then by now you should have an idea of how to set it up. To give you the best chance of success, we suggest bearing in mind a few things to remember.
No strategy is infallible. The EMA 200 approach is merely a way of viewing existing data to try and identify trends and traders should not over-commit based on the results of applying the strategy.
Further to this, always remember that there are tools you can use to mitigate losses, should a position not go your way. For example, at CAPEX, both of our platforms offer stop-loss and take-profit order options. Having these in place means you can exit a position when it reaches the desired price, or have it close automatically if losses start to grow.
One of the best ways to strengthen the results of any strategy is by combining it with another. For example, why not check out our Donchian Channel strategy guide and see how this might be used in conjunction with EMA 200?
Conclusion – Trade Forex CFDs at CAPEX
The 200 EMA Forex strategy is hugely popular and very simple to apply. Of course, it isn’t a foolproof system and it’s important that novice traders manage their expectations accordingly. In a nutshell, all chart-based strategies are simply means to simplify and visualise what would otherwise be chaotic price movement.
Using the 200 EMA strategy allows users to see an asset’s previous price movement as a single line that, in theory, can be used to identify trends. However, this can be a powerful tool in the right hands and many traders have had success with the strategy, hence its ongoing popularity.
The 200 EMA Forex strategy is used by both day traders and swing traders and can certainly be a powerful addition to your trading arsenal. If you’re interested in learning more, why not try out the strategy for yourself, risk-free, using a CAPEX demo account? Join CAPEX today and start learning!