We all know that the Forex market is the most liquid financial market in the world. Because of these volatile movements, it is perfect for traders to earn good money. Because of the high potential for profits, Forex traders have increased greatly recently.
Because there are so many experienced traders, there is an abundant amount of resources and trusted strategies being shared with the trader community.
OK, what are the best strategies for beginners?
We advise that beginners do not start with complicated strategies. Let’s start with making the dough before we make a beautiful cake.
Forex Strategy 1 – Trend
This strategy is absolutely essential for beginners because it is also very simple and easy to understand.
The concept is that you have to follow the trend of a particular currency pair (eg. USD/EUR, USD/GBP, etc.), and open your position in the direction of the trend (up or down).
Market trends are usually long, medium or short-term. But no matter if you want a long-term or a short-term strategy, you just need to observe the charts with great attention to detail.
Forex Strategy 2 – Breakout
Breakouts are easy to understand for traders because when a breakout (new trend direction) occurs, this is a good signal that shows that a new upward trend is beginning.
A breakout basically happens when a market moves to new directions, beyond the support and resistance indicators.
This is a popular strategy for investors because when something suddenly moves in another direction, this is a great opportunity to make money from volatility.
Forex Strategy 3 – Simple Moving Average (SMA)
Another good forex strategy for beginners is utilizing the simple moving average (SMA), which can be easily obtained from chart tools.
The SMA is basically taking older data from a period of time (for example, 30 days) and then use this data to calculate and show the average price of the financial instrument.
Ready to begin your Forex trading journey? Even if you are a beginner, you can try the above 3 simple strategies by practicing with FBS Markets’ FREE Demo Account with $10,000 included.