3 Simple Forex Trading Strategies for Beginners

1. 3 Simple Forex Trading Strategies for Beginners As a beginning forex trader, you can simply get lost, confused or overwhelmed with all the information you are barraged with on the internet about trading. The best thing to do is just to take it slow, learn how to trade properly. Below are the 3 simple forex Trading Strategies for Beginners. 3 Simple Forex Trading Strategies for Beginners 1. Currency Analysis One of the simple Forex trading strategies for beginners is the use of currency analysis to predict the market movements and currency fluctuations. There are two methods used to analyze currency, and these are technical analysis and fundamental analysis. [1] Technical analysis It involves the price of the currency pairs and is used to help identify any trends and measure the price volatility of currency to detect the trading signals. [2] Fundamental analysis It looks at outside and government factors that could influence the value of the currency, such as the unemployment rate and the stability of current political situation in the country that offers the currency. Either type of currency analysis strategy can be an excellent match for beginners because the analysis is not overly complicated and the trading signals are usually fairly clear and pronounced. Some beginners may do better analyzing the technical aspects of a currency while others prefer using the fundamental analysis instead. Either way currency analysis Forex trading strategies are an excellent choice for many beginners in the Forex market after a trader has successfully traded using a dummy account.

2. 2. Day Trading Strategy Day trading is most popular Forex trading strategies, and it can be ideal for many beginners in this market. With this strategy, you will not hold any trading positions overnight. Instead, traders will buy during the day and liquidate all of the positions held by the end of the same trading day. The longer you hold a position, the higher your risk of losing at the trade. Day trading enables you to make many small trades during the day, without taking on higher risk with your positions. Currency prices are continually fluctuating through the day, and taking advantage of these little price fluctuations can be easy to do and very profitable. This is true for beginners and experienced traders both. The price variations are small, but over the course of many trade these smaller profits can add up to a much larger amount 3. Support and Resistance Levels Support and resistance levels are generally used as Forex trading strategies, and this is a straightforward strategy for beginners to learn and understand. Each currency will have price fluctuations through the week and day, and these variations help to identify any future price movements and trends for the currency. You can analyze and research the past price movements of currency to recognize the support and resistance levels of the specific currency. This method also be called range trading, and to be successful, you must identify the typical range of the currency trading activity. If currency moves between $1.08 and $1.20 through the day, then the $1.08 is the support price, and this is when the trader wants in. When the price gets near to $1.20, the resistance point for the currency, then the trader will normally get out of the position and cash in. This strategy involves identifying the support and resistance points, but this is not difficult. Researching the currency variations for the past week or two will help you set these points.