Top 5 Forex Trading Approaches for Beginner Traders

Click here to Enjoy Live SHARE MARKET Commentary and for NSE & MCX

A forex trading strategy is a structure that a novice forex trader utilizes to determine when to sell or buy a currency pair. As a beginner forex trader, there is a lot that you have not grasped about the forex market. Therefore, you must take the time to learn to identify and understand how to apply all the trading strategies.
Various trading strategies for implementing trading activities exist. However, not all the trading techniques will suit your trading. Therefore, you must carefully select the trading strategy that will best apply to your trade.
 Understand it, and know how well to apply to your forex trade.That will make it possible for you to correctly predict price movements in the forex market, and hence select the best investment choice.

Trading Strategies

When selecting an appropriate strategy, you should consider the resources at your disposal, plus your trading goals. Always choose the easy to comprehend forex trading approaches, as a beginner; strategies that will generate profits without too much straining. Below is a discussion of the five common and most suitable forex trading strategies for a beginner.

Support and resistance trading strategy

This is the line that is always appearing on the forex trading wall, as trades take place. They act as obstructions within the forex marketplace. They are easy to recognize since they block the price from going past that level.
As a beginner trader, you should train yourself to spot the support and resistance points on the charts, despite the trading currencies.This strategy is not time-limited and is the most effective as all that use the strategy to predict the future direction of the given currency pair have always been successful.
The line indicates the exact entry point and also the instance to join a trade.With this strategy, you take sell entries when price rejects the resistance area and takes the buy entries when price rejects the support area.

Trend trading strategy

With this trading strategy, the prices follow a given trend and select an atop and a bottom behind it. It involves detecting forex pairs that are either trading bullish, or bearish. This enables the traders to discover the direction they ought to be trading in.
For the bullish trend, the buy entries of trade perform well than the sell entries. Once you have identified the forex pairs, the following step would be utilized to discover trade entries while utilizing the trending indicators. There is a myriad of trending indicators present in the forex metatrader4

Fibonacci trading strategy

This is another strategy but requires a lot of practice to grasp it all. It is a means to a long term strategy. It is mainly used to track recurring support and resistance levels so that it necessitates extra time to accomplish a trade.

Scalping trading strategy

This strategy is termed as low-risk. It is good for beginner traders, however, even the most skilled and successful forex traders can use this scheme, and still make good profits.
This strategy generates profits through minimal price fluctuations. Therefore,the trade becomes profitable as soon as it has been executed. The profit from using this strategy is too tiny, and it is evident that the strategy does a trade-off between the size and the number of wins.
The number of wins may increase, but there will be a direct decrease in the size of the wins. Hence, the resulting profit remains small.Trading using this strategy may require you to have a lot of patience, to make it through it. Otherwise, you can learn another technique that will match your resources.

Candlestick trading strategy

The candlestick contains the price reactions for a given period. The price reactions are for periods ranging from minutes to weeks and months. It is of the chart type and is very common with forex traders.
There are other forms of charts such as the line and bar charts. However, they do not tell much aboutpreceding price actions. Therefore, the candlesticks are relevant as they deliver correct information about the historical price changes.
The candlestick is indeed beneficial as it can communicate on whether there are any potentials for trading entries and exits. Therefore, you as a beginner trader will use the past price responses to decide on the best action to take regarding the future price.

Conclusion

There are many trading strategies that traders can implement. However, the effectiveness and accuracy of the strategy are all dependent on the execution and how well the strategy is executed. Remember, practice makes perfect. The forex market is a trial and error business. Therefore, practice more to identify and understand the strategy that is more suitable for your forex trade.

If you Want even quick returns than CHAT LIVE WITH US FOR DETAILS

 

For more articles click here