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Forex strategies for beginners

Forex strategies for beginners
The Forex market is filled with hundreds of different trading strategies, but what are some of the best Forex strategies for beginners? It’s often said that a beginning trader is closer to becoming consistently profitable than a trader who has been trading unsuccessfully for years. This is because a beginning trader hasn’t had time to create any bad habits.

But no matter if you’re a beginning trader or you’ve been trading for years, there are a few trading strategies that will help them get to where they want.
Breakout strategy
Traders who follow this strategy, try to enter the market when they see it coming out of the preceding trading range. The goal is to wait and see where the price levels are heading.
If the price starts climbing more than the resistance level it had before, then the trader will choose to enter this breaking point in the hopes that the climbing trend will continue. Similarly, if the price overtakes the support level of the previous trend, then the trader will choose to sell assuming that the market trend will continue on a downward spiral.
Carry trade strategy
This Forex strategy is said to be one of the most unique ones among fx traders as it lets them make a little extra profit if they time it correctly.
The Carry Trade strategy lets traders take advantage of the interest rate differential that arises between two country’s currencies. Traders make extra profit by following this strategy by selling out the currency of a country with significantly lower interest rates and buying the currency of a country that has a higher interest rate.
Range trading strategy
This strategy involves operation in a price range that is known to be steady and reliable as the assumption behind Range Trading is that prices can only stay constant for a short period.
The important thing to look out for while range trading is the most favourable price spot for entry which can be easily identified by support or resistance levels of the trend that you are following. Traders implementing this strategy are known to either buy or sell their positions at predictable highs or lows whichever suits them the best.

Forex trading terminologies for novice traders

This type of forex market includes selling and buying of real currency. For instance, you can buy a fixed amount of sterling Pounds and exchange it for Euros, and when the value of the Pound rises, you can re-exchange your Euro for a Pound and get more money than you spent on the purchase.

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