Guerrilla Trading is for traders who stay in and out of the market constantly and believe in making quick, easy money, while keeping the risks to the lowest. The trading period for this one is shorter than that of a scalper and makes day trader show as a long-standing investor. Small profits in numerous transactions, is the purpose of this trading.
The success of this tool mainly depends on high advantage, low commissions and most essentially on tight trading spreads. Guerrilla trading strategy fits in the work protocol of all financial markets, but works best in currency trading market aka Forex.
Currency pairs that have copious liquidity and low spread are the favored one for this tool.
Distinct Features of Guerrilla Trading
The primary aim of a guerrilla trader is to make low fixed profit in every trade, but while keeping the trading count to a good number. This helps in justifying the overall gains compared to the amount of risks involved in short-term trading. Just few features, which make this unique, are:
â€¢ Most commonly, the average trading time for a guerrilla trader is of just few minutes, as longer time can mean a greater risk for the traders and may cause the market going against them.
â€¢ The trader usually risks just few pips in every trade, leading to decrease in the maximum loss, which is restricted at just 5 to 10 pips.
â€¢ A single trading session here, usually consists of 20 to 25 trades, such frantic trading is seen when some important economic data is released.
â€¢ The short term focus required in this trading, makes traders rely on tick charts or 1-minute charts to identify the entry and exit points for trades.
â€¢ Guerrilla trading relies on low commissions and tight trading spreads, traders thus stick to foremost currency pairs that have assured liquidity.
â€¢ Mostly experienced traders adapt this strategy and it is not for the new traders.
â€¢ The risk taking here is calculated, thus traders can stay out when the markets are volatile, and risk is too great.
The Forex Guerrilla system is designed to work on few currency pairs that can help any trader in earning best returns, these include GBP/JPY, EUR/USD, AUD/USD, and GBP/CAD pair on a range of timeframes.