Success in every field requires experience and guide. If you are a beginner in forex trading, then off course you need to play your cards quite sensibly. You have to put some decent amount in order to make big gains. But remember, Forex trading is not an easy task and a slight mistake can lead to a severe loss. So that is why it is important to follow some proven strategies that will work in your favor.
Forex Trading Strategies for Beginners:
Being a beginner, you should follow strategies that put you in less trouble in case you encountered a loss. Common strategies are:
Entry Strategies
Some currency stocks are very popular in the market. So they are bought and sold quite comfortably in the forex market. Traders usually prefer stocks that have liquidity and volatility. Liquidity allows quick cash out of money from the forex while volatility allows traders to enjoy sufficient points/profits. Intraday Candlestick Charts, Real-Time News Service and Level II Quotes/ECN tools you can use to identify the possible entry points.
Currency Analysis Strategy
This is described as the easiest to implement strategy method and helps a lot in predicting the currency fluctuation and market sentiments. Under this strategy, we can use the Technical Analysis method and Fundamental Analysis Method to analyze currency value.
Technical Analysis: It is used to measure the price volatility of forex and identify the pattern or trend. It can be done using various spreadsheet software like Microsoft Excel.
Fundamental Analysis: This analysis looks at the environment which could impact the price of the currency such as Government actions, inflation rate, and unemployment rate.
Day Trading Strategy
This type of strategy is also useful for experienced traders. As a beginner, you can buy currencies when they are touching the floor and sell them on the same day when they are touching the cap. During the day the price fluctuates very little and as a result, you will earn very little but it will save you from a big loss. Day trading strategy is carried out by most of the people while doing their other daily routine work.
Range Trading Strategy
This strategy works on the idea that currency usually moves some points and do not move beyond that. This trend pattern can easily be judged from the past records of currency price movement. For example the currency range in the last 30 days has been 1.50 to 2.00, then as a beginner trader, you can assume the price between these two levels and play your card accordingly. This is somehow similar to the butterfly effect in which butterfly moves its wings within a particular range and you can easily predict how the future will turn out to be. This strategy is also called the Support and Resistance Levels strategy. In the above example 1.50 is the support price while 2.00 is the resistance price. When the price comes near to 2.00, a trader usually cashes in and makes the profit due to the difference.
By following the above forex trading strategies for beginners, you can become a giant in the forex market very soon.
Being a beginner, you should follow strategies that put you in less trouble in case you encountered a loss. Common strategies are:
Entry Strategies
Some currency stocks are very popular in the market. So they are bought and sold quite comfortably in the forex market. Traders usually prefer stocks that have liquidity and volatility. Liquidity allows quick cash out of money from the forex while volatility allows traders to enjoy sufficient points/profits. Intraday Candlestick Charts, Real-Time News Service and Level II Quotes/ECN tools you can use to identify the possible entry points.
Currency Analysis Strategy
This is described as the easiest to implement strategy method and helps a lot in predicting the currency fluctuation and market sentiments. Under this strategy, we can use the Technical Analysis method and Fundamental Analysis Method to analyze currency value.
Technical Analysis: It is used to measure the price volatility of forex and identify the pattern or trend. It can be done using various spreadsheet software like Microsoft Excel.
Fundamental Analysis: This analysis looks at the environment which could impact the price of the currency such as Government actions, inflation rate, and unemployment rate.
Day Trading Strategy
This type of strategy is also useful for experienced traders. As a beginner, you can buy currencies when they are touching the floor and sell them on the same day when they are touching the cap. During the day the price fluctuates very little and as a result, you will earn very little but it will save you from a big loss. Day trading strategy is carried out by most of the people while doing their other daily routine work.
Range Trading Strategy
This strategy works on the idea that currency usually moves some points and do not move beyond that. This trend pattern can easily be judged from the past records of currency price movement. For example the currency range in the last 30 days has been 1.50 to 2.00, then as a beginner trader, you can assume the price between these two levels and play your card accordingly. This is somehow similar to the butterfly effect in which butterfly moves its wings within a particular range and you can easily predict how the future will turn out to be. This strategy is also called the Support and Resistance Levels strategy. In the above example 1.50 is the support price while 2.00 is the resistance price. When the price comes near to 2.00, a trader usually cashes in and makes the profit due to the difference.
By following the above forex trading strategies for beginners, you can become a giant in the forex market very soon.
