3 PROFITABLE TRADING STRATEGIES FOR BEGINNERS
The Forex market is another form of the foreign exchange market. It is the process of exchanging a currency into other currency for several reasons, might be for trading, or tour. According to some recent reports from the Bank for International institutes, the turnover of the Forex market is currently at more than $5.1 trillion.
In the next section, we will see the basics of the Forex market including the elements of it. Therefore, you would know how overall activity in this market occurs and how you can make a benefit from the foreign exchange market.
The forex market is the world’s biggest financial market. Most of the market participants here are the Institutions and Central Bank. The involvement of retail traders is very small compared to the big investors.
Moreover, the work and analysis are not the same for big institutional and retail traders. big investors move the market with a massive amount of money.
Therefore, they have the power to move the market aloneTedy don’t care what a retail trader is doing, sitting in front of the computer.
So the main duty for a retail trader is to follow the path of big investors and identify what they are doing and where the price they might take.
Retail Trading Strategy in the Forex Market
By doing this the retail trading strategy comes in the action. There are a lot of retail trading strategies available on the internet.
Moreover, many trading strategies have been created by famous mathematicians and analysts. all trading strategies have some unique methodology and unique characteristics that do not compare with another.
This Means War strategy can be usable by a person at the same strategy that can bring loss for another trader.
identifying the right trading strategy is the key to being successful in the industry.
Forex trading requires patience and practice to be successful.
However, the successful traders use the same trading strategy that new traders intend to use. There is no rocket science for magical methods that dream money to the successful traders only.
The challenge for the new traders is to follow the trading methodology and rules very strictly.
For example where a trade setup staff and appears to be very lucrative but one of the trading conditions is not allowed. a retail trader who is successful in the industry could not take the trade and just leave it and wait for another setup to come.
On the other hand you traders may think if he does not take the trade you will use that money or not willing to miss the trade as it seems like they look pretty.
So for new traders and beginners, it is suggested to use a trading strategy that is not complex that is easy to you but profitable.
In the following section, we will see three profitable trading strategies for beginners that can bring profit for traders.
3 Profitable Trading Strategies
There are a lot of trading strategies in the world but all of them are not suitable for newbies. new traders do not have patience like the professional traders so their trading strategies need to be simple and profitable.
Let’s see the 3 profitable trading strategies here:
It is the method to earn a quick profit from the market from the difference between speed and ask price. The concept of marketing is that it allows a trader to earn money without putting so much effort into the market.
Here traders might find it very easy as he does not have much knowledge about the market. scalping trading strategy required less time to see the outcome software to the intraday for swing trading.
On the other hand, scalping trading strategy is not for those who may try to multiply their account three to four times within a short period of time.
However, one thing that should be kept in mind that the forex market is the place where people can earn money with slow growth.
The forex market is not a money-making machine and it will not allow its readers to be rich very quickly.
It requires patience and consistency that most of the successful traders have. Is scalping trading allows a trader to earn quick profit does not mean they can earn profit every day for every trade setup will go to the profit?
a lot of trading strategies available such as scalping that starts from 1 minute to 1-hour chart.
#2 Price action trading
It would be pretty confusing to see price action for the beginning traders. As we know price action is a huge concept and there are no specific rules.
Therefore most of the traders use price action as a part of their trading strategy. For beginner traders, price action trading means the simple concept of selling from the resistance and buying from the support.
There are many professional traders who use these concepts and make huge money from the financial market.
There are three types of trading systems for new traders as a part of price action.
For example, when the price is within a range traders can use the concept of sell from resistance and buying from the support to make the maximum benefit.
On the other hand, when the market is heading with a strong bearish trend any break of the support might make it as a resistance.
Therefore it will be an opportunity to sell from there resistance as a continuation of the bearish trend. The same thing applies to the bullish market as well. If the market moves within a strong bullish trend any break of the resistance might make it support.
Therefore, it would be an opportunity to buy from the support in the bullish trend. For this price action, traders should trade on the current trends.
For price action traders, It is important to know what is happening in the higher time frame. The higher time frame always provided accurate results as the investors used it.
#3 Candlestick Trading
Candlestick trading is a simple and straightforward way to earn money from the Forex market. It is an easy and effective method to determine the price direction of a currency pair.
May professional traders and analysts use candlestick trading in their trading strategy.
On the other hand, price action traders also use the candlestick charts as an important price direction measurement tool besides the other methodology.
The forex trading strategy is a way to determine the price direction. Every trader in the industry should have a trading strategy and it is compulsory to follow the rules accordingly.
On the other hand, it is important to ensure that the trading strategy includes the big players’ intervention in the forex market.
Moreover, the uncertainty in the market could make any trading decision questionable. Therefore, risk management became another important tool.
Every trader should put stop loss in every trade and it is wise to bid for higher return with minimizing the risks.