According to the analysis of exchange trading, only up to 3-5% of traders receive regular income from this activity. Without a developed strategy, systematization of work, and compliance with established rules, it is impossible to profit in the Forex market. Therefore, beginners who are in a hurry to make money on the currency exchange, have no trading experience, and do not yet understand the charts quickly lose their deposit and leave this business. After that, many people got negative reviews about brokers on various online forums, and it is impossible to make money here.
What are Strategies, and What are They for?
To start trading on Forex without risk and loss, first of all, learn the basic concepts and terms of trading. Then it is recommended to work out ready-made stock trading strategies offered by experienced traders with many years of experience in this area of earnings.
A trading strategy is a system of rules that must be constantly followed. This is a plan for making deals and trading in the Forex market. A well-developed trading strategy allows a trader to enter the market at a set point without any doubt and exit it promptly while making a profit. No one is immune to losses in the foreign exchange market.
The trading plan is compared to a road traffic light for cars. An experienced trader recognizes signals that allow entry into the market. Any professional will not trade in the Forex market without the developed Strategi. Beginners often neglect these rules and lose their financial investments.
The main difficulties arise for traders in the presence of funds in the trading account with the choice of entry points to the market. To avoid such doubts, a trading strategy is needed. The moment of opening a transaction occurs when signals appear, which may be the following:
- the price has reached the set level;
- the intersection of indicators on the price chart of a traded instrument;
- the formation of a graph of various figures that predict the further direction of the price;
- available combinations of candles.
There is an opinion that when concluding contracts without a trading plan, the number of profitable and unprofitable transactions is approximately the same. But practice shows that if even the most straightforward Forex strategy is not applied, trading sooner or later leads to the loss of the deposit.
Beginners are encouraged to use working strategies developed by experienced participants in the foreign exchange market. With the advent of experience, the charts will be easy to read when the market becomes clear. You need to combine different forex broker trading strategies and add something of your own to them. The result is your trading plan.
Any self-created strategy must be tested before being used in the market. Experienced participants in currency trading recommend doing this within six months and only on a demo account so as not to lose your own money.
Adjustments are made if necessary, and only then is the most profitable strategy with a high probability of success obtained.
Without experience in this area, there is no need to rush anywhere. Before you start operating with your own money, you need to study the already-developed trading strategies by professional traders carefully. And for beginners, it is recommended to take at least an introductory Forex training course.
If you learn to distinguish between entry and exit points from the market and constantly adhere to the established rules, the trading procedure will not present any difficulties. But 90% percent of inexperienced currency traders neglect all these rules, wanting to quickly make a profit, lose their deposits and decide to leave this business.
The easiest and most profitable strategies for beginners
Undoubtedly, no perfect trading strategy works for high returns and minimal risks. But several optimal programs have been created to help novice traders receive a stable average profit from the first transaction. Let’s tell you more about the six simple but working Forex currency market strategies.
This is the most straightforward Forex strategy that any beginner can handle. She works on halves of five and fifteen minutes. The scheme is based on the fact that any currency pair at least once a day forms a significant jump in the quote. The analysis uses the Bollinger Bands and RSI indicators. The latter should be set for a period equal to six and 20.80.
The best time to trade on this tactic is when significant players enter the stock exchange. They dictate the conditions for the formation of a trend, and the course movement is most accurately reflected in the charts. Such phenomena occur in the European and American sessions.
The analytical scheme works on the prediction of the reversal frequency. If the direction of the exchange rate changes with enviable regularity, then the market is actively trading. If the trend is down, the trader expects the quote to fall by several points. Even though the currency’s price moves in one direction, there are slight fluctuations in sections. This strategy is based on them, and a decent amount of capital can back it up.
It is worth starting with small investments, then gradually increasing the size. Be sure to fix at least ten candles, and use several indicators. We must not forget about the control of the news feed since events in the international market, politics, and the economy directly affects foreign exchange trading.
Tips for Beginners
Every investor needs to invest safely and profitably. The best advice from professionals is to use capital in trading that is not capable of damaging personal and family budgets. When finances are not enough, no tactic will help to increase them many times over in a short time. And the psychological pressure will be at its maximum because of the fear of losing everything. Profitable investing is easy with a deep knowledge of the analysis and fundamentals of the foreign exchange market.
For complex and incomprehensible strategies, it is better to devote more time to mastering the theoretical material than only practicing. The best option is to practice on demo accounts. Here, the market client manages virtual finances, and there is no risk of losing real money.
It is worth noting that no strategy will be perfect. Therefore, it is recommended to constantly study the international currency market and test new tools and indicators. Constant development and improvement of trading will allow you to trade successfully and productively.