One short-term strategy that I find to be the most effective way to minimize risk trading foreign currency is through Binary Options. You can also trade Binary Options on stocks. Binary Options trading is the best way to minimize risk by far of any other kind of investment. By placing a call and a put on a trade and leaving room in the middle range on where the price will fall on a short-term basis as in as little as an hour, you can really have the most minimized risk and over a 65% chance of profiting over 53% of your investment. A call is when you estimate the price will be higher and the put is when you estimate the price to be lower. The range that you want to leave room in the middle is the target range for profit, estimated by my technical analysis through charts and graphs on where the price is averaging to be. Make sure you place the call at your lowest estimate range and the put at the highest estimated range so you create a middle range to profit on both. If you need to adjust you can make up to 4 calls or puts or combination on one transaction. If you miss this range you face a minimal loss with this strategy by less than 10%. Also if the range price does not move to a wide enough area, then you can hold off on executing the trade. For example if you make a $60 dollar trade, $30 dollar on a call, hedging (hedging- any technique designed to reduce or cut financial risk; such as, taking two positions that will offset each other if prices change) it with a $30 dollar put and keeping room in the middle for an estimated profit range on the call and the put, you can have better than a 65% chance of about $52 dollars after the deduction of the original $60 dollars on the trade. This is about a 54% profit. If your estimate on the price does not fall within the range you would still be in the money (make a profit) on either the call or the put, so you still would get back over $50 dollars and have less than a 10% loss. You would risk only about $8 dollars on about a 65% chance to net profit about $52 dollars. (if in target range, profit would be about $112 dollars minus the $60 dollar investment ($30 dollar call & $30 dollar put) with a net profit of about $52 dollars.) This example is about a 54% profit with a maximized least risk. I find this strategy to be the most effective. Of course this is done on a scale level and the percentages are consistent with profit and loss, so you may make higher trades. My example is for a minimum investment and the estimated payout rates are based on the company I am trading with. I believe this strategy to be one of the most effective ways to reduce risk and maximize profits. The company I trade with is BinaryTrends.com and I am profiting with this successful strategy.
This strategy was invented, tested and proven by myself.