Simple Forex Trading Strategies That Truly Work

Sometimes, a significant amount of information and Forex Trading strategies that we find around trading can be overwhelming. As we know, our forex market is massively liquid, having a large number of players. Its popularity has led many of those involved to devise strategies that for the initiated may interfere more than anything else in their education.

Precisely, today's article goes back to the basics to start in this fascinating world, and once you have internalised the basics, it will be time to master complex actions, regardless of whether you choose a simpler or more complex one. Do not forget to use what works for you.

A Few Of The Simple Strategies A Beginner Can Deepen More

On the one hand, we have the consistent Forex Trading strategies to follow the trend, which is distinctly seen when the price moves in a specific direction, this trend may be bullish or bearish. A trend tracking system produces buy and sell signals, which align with the formation of new trends.

Following the Forex Trading trend can produce great benefits, but it also has its drawbacks because trends are difficult to follow, major trends are rare, although we will always have to adapt the possible trend to the time frame in which we work. In fact, it is very possible to see a micro-trend in graphics of 15 minutes and even 5 minutes, although that trend can be 30 or 40 pips.

The Market Support And Resistance Zones

A big problem with a trend tracking system is that you need more money than usual to use it correctly. Therefore, it may not be ideal for beginners with fewer resources. In any case, this should not be a determining factor in minor temporaries.

Another simple Forex Trading strategy is to look for breakages. It’s known that markets extend between support and resistance zones, which is known as consolidation. A break is indeed while the market actually moves away from the limits of market’s consolidation, and move to new highs or perhaps lows. As soon as a new trend happens, the first thing that must happen is a break.

A reasonable Forex Trading strategy of long-term break is possible when the price breaks above the maximum of 20 days, in the case of purchase. The sale signal is given when the price breaks below the minimum of 20 days. Anyway, always have to be alert to false signals, and for this, we have the use of stops.

The Forex Trading SMA Strategies

The use of simple moving averages (SMA) is also a simple Forex Trading strategy to get into Forex. SMA is a lagging indicator that uses price data older than most strategies and moves more slowly than the current market price. A longer moving average is often used in combination with a shorter moving average.

For example, you can use a 25-day moving average in combination with a 200-day moving average. The first will follow the price very closely, while the second will soften the movement. When the shortest moving average crosses the longest, it indicates a change in trend. If it moves above it indicates an upward trend and is our buy signal. If it moves below, it truly suggests a great bearish trend out there and is our selling signal.

Finally, both Forex Trading strategies here are very basic, but it does not mean that they are not powerful and appropriate at a beginner level. As we always remember, before launching this or any other strategy, try it before passing it on to real.

Basic Forex Trading Strategies

For beginners, trading currencies online are especially difficult, first of all, due to the impractical hope which is prevalent among all people with little experience who know this kind of market.So, first of all, keep this in mind: trading currencies does not make people rich overnight, Knowing how this industry works is unquestionably important and must be taken into account when learning about Forex trading strategies for beginners.

The combination of all the participants creates the market. The relative importance of each group of participants is measured by the amount of money they handle. Hedge funds and investment banks handle billions of dollars, brokers deal with millions of dollars and traders own a few thousand dollars.

Long-Term Vs. Short Term Forex Trading Strategies:

In the initial stages, your goal will be to conserve your capital, not multiply it. When it comes to trading forex for beginners, reducing risks is the primary objective. Using appropriate money management techniques and simply following the trend you will get profits; it’s only a matter of time.

Think Twice Before Buying A Program:

Forex trading, both for beginners and professionals, requires software. The level of competition among brokers means that almost all software is free.

Forex market beginners are often tempted to buy Forex robots, also known as EAs (expert advisers if you think that an algorithm can do a better job than you, buy it, although you will not earn money easily.

And except you truly know the tool code in which it is written, you may not be competent to adjust your EA to work with market changes.

Starting a trading journal even before operating seriously is unconditionally necessary. A novice Forex trader should develop the mindset of an entrepreneur since that is what it is in reality. Any company needs a business plan, constant control, and regular audits. Spending too much is the safe path to disaster.

Every Day, Be Sure To Write The Following:

·         Points for future research;

·         Reasons to open or close an operation;

·         Your achievements and mistakes.

Keep your diary as a point of reference when you are analysing your activity. A newspaper ensures that none of your actions is in vain. The analysis of good operations will increase your confidence in trading and will motivate you to go further and further.

On The Other Hand, The Analysis Of Bad Operations Will Help You Improve.

Be curious:

In general terms, the less you know, the more at risk you will be. Similarly, there is no limit to the amount of knowledge (or risk) you may have.

There are unimaginable amounts of information on the Internet exclusively free regarding Forex trading strategies, such as:

·         Educational videos on how to trade forex currencies for beginners

·         Articles and training tutorials

·         Face-to-face seminars on how to operate in Forex, both for beginners and professionals

·         Online webinars to operate in Forex

The sources of information are numerous and only if you investigate personally can you identify the best websites to operate in Forex trading.

If perhaps you truly want to understand the way to trade Forex as a beginner, read nearly all things regarding Forex! Don’t like to read? Make sure you like it! And always analyse what you read, instead of believing stuff with faith (including this article).

Take It Easy:

The main cause of stress among trading beginners are losses in some Forex operations, which are inevitable. The market is like that. It is more important to remember that war consists of many battles and that a single victory or defeat is not decisive. Rather, it is the overall performance that truly counts, which is another reason to keep a trading journal.

Again, how can you trade Forex being a beginner? Calm down.There is only one kind of money that is used to invest: the one that you are willing to risk and ready to lose without damaging your physical or mental well-being.

And as a conclusion to this post, there is a saying that says: every winning trader is profitable in his way, while all losers fail in the same way. For that reason, there are many more tips for beginners to operate in Forex, whether they are useful or not, it would depend on the trader attitude.

Forex Trading Method- Moving Average Crossover

Moving average is an important and useful indicator in Forex market. Many traders got success by using this indicator.

There are four types moving average……

1.Simple

2.Exponential

3.Wieghted

4.Smoothed

Different traders use different types of moving average indicators and their combination.

Here we show how can you gain by using two moving averages crossover method.

But before using the indicators you must follow some rules……

*Avoid trading during news releasing. Because sometimes market trend changed after news releasing.

*Always follow money management.

*When you get the opportunity only then trade.

Moving Average details as below…………….

1.Moving Average 1:

The parameters of the moving average are “Period”-10, “Type”-Smooth, “Color”-Red.

2.Moving Average 2:

The parameters of the moving average are “Period”-20, “Type”-Smooth, “Color”-Blue.

Now we discuss about Buy/Sell trade. So read the details carefully and then try it.

Time frame: H4

Buy Trade:

a.       When Red moving average cross the blue moving average from down side.

b.      Candle must be upper from moving average.

Sometimes you find that moving average 1 cross the moving average 2 and candle not upper from moving average. That time must avoid the trade.

See the below image, You can understand easily……………..

Sell Trade:

a.       When Red moving average cross the blue moving average from up side.

b.      Candle must be down from moving average.

Sometimes you find that moving average 1 cross the moving average 2 and candle not down from moving average. That time must avoid the trade.

See the below image, You can understand easily……………..

By using this method you can gain 70% to 80% times. Always using same amount for every trade. Example if you trade $1 then all time you trade $1. If you follow it then you can gain easily.

Best Forex Trading Method Even For Beginners

There is much Forex trading method for beginners just as there are as many strategies as traders. This is hardly a surprise considering the number of factors involved in creating an effective forex strategy. A few of the factors which you must put into consideration while creating a trading strategy include:

·         Market and economic details,

·         Analysis theories and tools

·         The actual abilities of traders to understand the behaviour of other market players

First of all, what makes a simple and effective Forex trading method? The first element or determining factor must be to have criteria easy to understand and at the same time enough detail so that any trader can put the winning short-term Forex trading method into practice without any hesitation in its execution.

Being able to understand market trends is fundamental to any financial trader. Fortunately, the following trend strategy is one of the simplest forex trading strategies. The movement of markets in the same direction for an extended period, but the challenge in this Forex trading method is the speed and certainty to which a trader can identify a trend, and therefore be one of the first to get on the bandwagon.

Step 1 - Implementation Of The Beginning Forex Trading Method

In this Forex trading method, an exponential moving average 200 is applied to the hourly chart to help traders differentiate the range periods from the trend periods. If the candles close near the exponential moving average, the market consolidates. If the price closes relatively far, we are in the trend so we can move positions.

Step 2 - Entering Position Of The Forex Trading Method

To go into folds in the details of the forex trading method entry points, we use Bollinger Bands, which are a dynamic standard deviation indicator. The Bollinger Bands in this Forex trading method confirm if the market is expanding and help traders identify the impulses - the perfect place to get into a trend.

When the market is on the upward trend, you will see the Bollinger Bands above the 200 exponential moving average, so you can take a buy signal following the contact between the price and the lower Bollinger Band, marking a reject.

On the contrary, a sell signal is produced when the market is on a downward trend and when the bands are below the exponential moving average. However, the price must also hit the upper band - again indicating a rejection.

Step 3 - Position Output Forex Trading Method

An exit signal for long positions as sellers is produced when the price hits the opposite Bollinger Band - the upper band as part of an uptrend and the lower band as a downtrend. This allows a trader to exploit trend movements without losing time on retracements.

This is a good example of a simple Forex trading method. However, as with all trading methodologies, it is not without weaknesses. Similar to the breakout strategy, it has good results in a directional market but produces losses in a range and consolidation market. Unlike some other Forex trading method, this one is a bit more dynamic being on hourly charts.

My Special Advice On The Forex Trading Method

These are the simple and effective forex trading strategies that are relatively affordable for all but at the same time vary enough to suit the different types of novice traders. As a trader you should be able to see this Forex trading method as combinations of different logic, constituting different tools and following different rules.

While these trading strategies provide good methods to start forex, they are by no means perfect. There is out there a lot of room for adjustment as well as improvement. If you really want to succeed in forex, you must be able to think for yourself and develop your own Forex trading methods.

Finally, you want to use only a simple Forex trading method as a starting point; do not hesitate to put the strategies to test with our demo account that allows you to trade safely. And do not forget to check our education section regularly for an overview of best practices.