Simplest Forex Strategy That Works

When y'all think of forex strategies for beginners, what is the starting time thing that comes to your heed?

Simply because the word " beginner " doesn't mean that the trading strategy is any less inferior.

The misconception is that traders think a beginner forex strategy tin can never make profits. But this depends on the trading strategy itself and the trader.

Y'all can find many forex strategies for beginners. But well-nigh of them are too complicated or need endless hours of watching the charts.

The forex market tin be exciting for a beginner. And in this excitement, traders practice not pay attention to the central rules of trading.

Equally a consequence, you end up with a forex strategy that is not very effective.

Are y'all i of these traders who struggle to make coin?
Exercise yous find yourself jumping from one trading strategy to the side by side?
Are yous looking for trading strategies for beginners which isn't too complicated?

If you answer aye to the above, then this guide to trading forex is for you lot. You volition detect the most constructive strategies you tin can employ in the forex market.

Your hunt for the Holy Grail trading strategy ends here.

No, don't mistake this as magic or a hitherto undiscovered day trading strategy.

You lot will exist surprised to see that the forex trading strategies in this article are simple and piece of cake. And yep, they do work, despite their simplicity.

What are the cardinal rules in a forex trading strategy?

A forex trading strategy is non most buying and selling, albeit that existence the case. The best forex trading strategies need a mix of more than a set of trading rules.

There are three elements to brand a forex trading strategy to exist profitable for you.

Trading psychology
Money management
Trading rules

We will bear on upon these points in brief.

Trading psychology is the nigh important of all. A trader should observe a certain level of rationality. You need to go rid of your trading bias. This is like having a prejudiced notion about something or someone.

Even the best forex trading strategies can fail if already come into the marketplace with an stance.

Forex traders need to exist fluid and allow the markets lead them along the way.

Money management is always given the to the lowest degree preference. This is the number one reason why the all-time forex trading strategies fail. Traders focus on the trading rules of buying low and selling high.

Forex traders do not give much attention to managing their risks during day trading.

You volition lose money trading forex even if you lot follow the trading rules to the dot. Good traders manage chance, bad traders hunt profits when they trade forex

Trading rules are of import because these rules define the deportment you must accept. When traders face a streak of losing trades, they tweak their day trading strategies. This can plow fifty-fifty the best forex trading strategies into the worst.

Tweaking your forex trading strategies is acceptable but to a limit.

When you deviate from the basic trading rules in the forex market, y'all can end up with a losing forex strategy.

How did nosotros cull the trading strategies for beginners?

I'm sure y'all desire to bound ahead to the trading strategies for beginners. Simply hang on!

Don't yous want to know how we choose these day trading strategies?

There should be a method to this madness, shouldn't it?

Below is the criterion nosotros kept in heed when coming upwardly with the simple forex trading strategies.

We ensured that the indicators in the forex trading strategy is no more one or two. And for the forex strategy that does use indicators, we kept it simple and basic
The focus is on intraday trading in the forex market. You do not demand to spend as well much time watching the charts. Solar day trading should be fun! Non intense.
We also included cost based fix ups for the forex market place. This is considering we want to bring some variety to the twenty-four hour period trading strategies listed here
You can apply the forex strategy on the major forex currency pairs

With that out of the mode, permit's get on to the heady part!

Tendency trading strategy with moving averages

Moving averages are the simplest of all technical indicators. Merely information technology is interesting that many traders struggle with this indicator.

Forex trading strategies can be simple nevertheless effective. So if you are using a uncomplicated forex indicator in your trading strategy, information technology does not mean it is less effective.

The tendency strategy with moving averages is a forex strategy that takes you lot back to the basics.

Moving Average Strategy Set upward and Charts
Time Frame	1 Hour Chart
Indicator	Simple moving average (24, 48 periods)
Trading opportunities	Multiple signals
Works all-time when	During a strong trend

Trading rules to go long:

The short term (24 menses) moving boilerplate must be higher up the long term (48 period) moving average
Expect for cost to brand a high and and then retreat
The resulting low should non be lower than the previous low
Set a pending long order well-nigh the high with stop loss at the previous low
For take profit, use a measured take chances-reward prepare upwardly

The first chart fix up beneath illustrates the trading rules. Nosotros have an case of a long position using the moving boilerplate crossover method in the forex market place.

Moving boilerplate strategy - Long position example

Trading rules to go short:

The short term (24 period) moving boilerplate must exist below the long term (48 period) moving average
Expect for price to make a low and then retreat
The resulting high should not be higher than the previous high
Set a pending short order near the depression

The side by side chart gives an example of a short position. Equally you can come across, this is a very easy trading strategy for beginners.

Moving boilerplate strategy - Short position example

Pros and cons of day trading with moving boilerplate indicators

This is a simple but effective forex trading strategy that is beginner-friendly. Using this method, you are using tendency trading and post-obit the price action.

This strategy for the forex market combines technical indicators with a price.

The moving average crossover on the intraday fourth dimension frame allows you to trade the market trend.

We use the MA settings of 24 and 48 because it reflects the average prices for the 1-hour chart time frame. The risk management with this strategy is easy for beginners to incorporate.

We target the 1:1 and one:2 take a chance/reward fix using this method. You tin apply this to whatever currency pair of your option.

The moving average crossover method patience, for the right, fix to occur. If you blitz into the merchandise too soon, information technology carries a high level of take a chance.

The strategy is effective during the start of the European forex session and the U.Southward. forex session.

A beginner friendly trend line trading strategy

Beginners in forex trading avert price action trading strategies. They feel information technology is besides complicated and subjective. But this trading strategy busts that myth!

The candlestick forex charts are easy to understand. We likewise recommend that you read about candlestick charts. It gives more meaning to your trading.

Learning to read candlestick charts tin can assistance you in your technical assay.

In this forex trading strategy, volition use trend lines. Y'all will soon realize how elementary but effective this trading strategy will be.

Trend line forex trading strategy for beginners

A tendency line is a slanting line that connects ii sequent highs or lows in price. The trend line slopes upward (indicating an uptrend) or it can gradient down (indicating a downtrend).

When price breaks this trend line, what you get is toll movements in the opposite direction.

Thus, a rising tendency line break means a signal to short, and a falling trend line intermission means a bespeak to go long.

Trend Line Strategy Gear up and Charts
Fourth dimension Frame	one Hour Chart
Indicator	None
Drawing tools	Horizontal line tool, trend line (ray) tool
Trading opportunities	Once a day
Works best when	Markets are in consolidation

Trading rules to become long:

Plot the high and low from the previous day
Identify two consecutive highs and plot the falling trend line
The trend line should form within the high and low of the twenty-four hour period
Wait for cost movements breaking this trend line and take a long position

The long trade example illustrates this gear up up. This forex trading strategy is straight frontward.

Trend line strategy for beginners - Long position example

You starting time plot the previous mean solar day high and low. You and so draw a trend line and expect for the next day. When the tendency line breaks, you take a long position in the marketplace with a 1:1 and a ane:2 chance to advantage ratio set up upwardly.

Trading rules to go short:

Plot the high and depression from the previous day
Identify ii consecutive lows and plot the rising tendency line
The trend line should course within the high and low of the twenty-four hour period
Look for toll movements breaking this trend line and accept a brusque position

For the curt fix ups using the trend line forex trading strategy, you do the same as higher up. The difference being that in this case, you will use the rising trend line.

Tendency line strategy for beginners - Brusk position case

What y'all should know when day trading with trend lines

Trend line day trading strategy can be intimidating as a forex beginner. Simply hey, everyone has to start somewhere.

We recommend that you spend time practicing how to depict tendency lines on your forex charts.

With plenty do, you lot will realize how easy trend line trading can be. This is one of the elementary forex trading strategies that offers a different trading style.

The risk management rules are besides outlined. It allows you lot to make consequent profits every time you lot are day trading with this method.

One of the risks of day trading with tendency lines is over-trading. You will discover many trading opportunities.

Never open up a new trade until all your existing forex trades are closed.

Simple intraday breakout strategy

This strategy uses trading styles that may not exist suitable for all traders. You lot demand to take a good grasp of candlestick chart patterns. We practice not use any indicators with this method.

This is 1 of those trading strategies that work because you focus but on price. You lot can apply this strategy for news based trading such as involvement rates decisions.

These events are volatile, but you tin can employ them for trading different currency pairs.

Intraday Breakout Strategy Set up up and Charts
Time Frame	1 Hour Chart
Indicator	None
Drawing tools	Horizontal line tool
Trading opportunities	Very frequent
Works best when	Market consolidation right subsequently a strong motion

Trading rules to go long:

Identify 3 consecutive bearish candlesticks. They should accept lower highs, lower lows, lower open up and lower close
Set a pending long guild near the high of the kickoff candlestick
When price breaks out from this level, ready your finish loss to the pivot depression
Using the hazard from the pivot low, book profits with a 1:1 and 1:2 risk/reward set up

The beginning chart shows this trading fix.

Intraday Breakout Strategy - Long instance

Trading rules to get brusk:

Identify three consecutive bullish candlesticks. Each candlestick should take higher highs, higher lows, higher open and higher shut
Set a pending curt lodge almost the depression of the first candlestick
When price breaks out from this level, set your stop loss to the pivot loftier
Using the gamble from the pivot high, book profits with a 1:1 and 1:2 risk/reward ready

Intraday Breakout Strategy - Short instance

When does this forex trading strategy piece of work best?

This intraday strategy works on whatsoever of the currency pairs.

We recommend you stick to the major currencies such as the euro or the Japanese yen.

The buy or sell signals are quite piece of cake. This strategy works all-time is when used on trading volatile news events. Interest rates, Gross domestic product release and and so on are some examples.

As with all strategies, move the finish loss to pause even when the market moves in your favour. A forex trader will need some practice when trading this strategy.

Which of these three forex strategies for beginners should yous choose?

In the previous sections, nosotros covered the different day trading strategies.

Going by the trading strategy names and rules, you already accept a fair idea of how they work.

These forex day trading strategies for beginners are all effective in their own way. And y'all can make money right off the bat.

The play a joke on is to get comfy trading with one method and sticking with it.

But! It is important that yous sympathise if a trading strategy suits your style or not.

Many in traders misinterpret this.

Y'all do not throw away a trading strategy because it caused you some losing trades. If you proceed doing this, you will only cease upwardly looking for the next all-time forex strategy.

And this endless chain will continue to no end.

You must utilize a demo trading account showtime to become familiar. But there is more to it than that.

To aid y'all interruption this habit, here are 3 things that every beginner to forex trading should go along in heed:

1. Your risk contour determines your trading strategy

Are you a trader that does non feel comfortable with large swings in prices?

Then, focus on mean solar day trading strategies that can brand y'all consistent profits.

This will come at the cost of having to spend a trivial bit more time with the forex charts. But equally long as yous are comfortable with this, you lot can find ane of the trading strategies to work.

2. Objective or subjective?

Let'south confront it... Non every forex trading strategy is mechanical. Strategies using cost (support and resistance or trend lines) are subjective.

Not all forex traders are the same. Some observe more than success trading forex with ane trading manner than the balance. This is OK!

If you are ane of them, and so you should opt for trading strategies that piece of work for y'all.

iii. Does the forex market trend thing to you?

Unlike people interpret trends in unlike means in the forex market. The tendency is your friend when you trade forex. But you can likewise notice many trading opportunities using unlike strategies.

A trend-following strategy volition non always brand you money.

Trend following and counter-tendency following forex trading strategies are both constructive.

The trading strategies for beginners outlined here are easy to use. They follow the concept of trend, only you lot can also apply this long term and short term.

Depending on your goals, you can focus on the different ways you lot tin trade forex with these methods.

How to utilise these uncomplicated forex strategies?

When using these forex trading strategies for beginners, remember the following points:

Earlier y'all starting time trading, read upwards on the indicators/methods we use. Ask questions when it doubt.
A forex strategy works only if you have plenty practise. And so commencement with a demo trading account showtime.
There are many trading platforms, only the Metatrader 4 platform is 1 of the best. It has lots of indicators and tools that even professional traders use. It is likewise complimentary to apply for trading forex.
No strategy is 100% foolproof. You will lose money. Losing trades are office of the game. The trick is to manage these risks when trading forex. Trade only with the coin that you can beget to lose.
The trading strategy for beginners are simple strategies. So do not overcomplicate the methods outlined here.