The forex trading market is a tricky and intricate field. Forex strategies are there to domesticate the market’s volatility, liquidity, and volume. In the market, numerous forex trading strategies can easily baffle a beginner. That’s why we came up with some main forex trading strategies that a newcomer can use to take their baby steps in the forex market.
Once you learn to implement forex trading strategies, then in near time, you will be ready to explore the more complex areas of forex trading. So, without any delay, let’s discuss some simple forex trading strategies.6 Most Easy Forex Trading Strategies
1. Forex Breakout Strategy
When a market shift in a new direction, beyond its resistance and support signals, a breakout happens. A breakout is the best chance for a newcomer to start forex trading at the right time where they can enter an emerging trend that is going on.
Note: It is not necessary that every breakout results in a new trend.
2. Daily Fibonacci Pivot Trading Strategy
This forex trading strategy is not as complicated as it seems. The daily Fibonacci trading strategy uses daily pivots only. To calculate resistance levels and support, this strategy utilizes Fibonacci extensions and retracements. It can be extended to a longer timeline and can incorporate any number of pivots. Traders can choose the parameters for the Fibonacci levels.
3. Bolly Band Bounce Strategy
The best feature of the Bolly Band Bounce forex trading strategy is that it allows investors to invest even when trends are not available. This strategy is excellent for a ‘Range Market’.
The Bolly Band Bounce trading strategy is an excellent technique to deal with a limited range of price fluctuations. For short-term price movements, it relies on Bollinger Bands to form a limit. If you are thinking of using it, then use it in combination with confirming signals.
4. Carry Trade Strategy
Carry trade strategy is easy to understand and implement for beginners. Carry trade forex trading strategy is one of the strategies that can be used by beginners as well as experts and professional traders. This strategy helps traders to succeed and gain profit from the yield difference between a pair of currencies.
5. Forex Dual Stochastic Strategy
This forex trading strategy looks pretty straightforward; but, beginner traders need to gain technical knowledge before mastering it. The Forex Stochastic strategy is a flourishing trading strategy based upon combining a fast and slow stochastic.
Fact: The FDS strategy can help forex investors by giving them a signal that a price is going high but overextended.
6. Simple Moving Average Crossover Strategy
A simple moving average crossover strategy can benefit both beginners and experts. It is one of the most appropriate forex trading strategies for newbies.
This strategy mainly focuses on using the simple moving average (SMA). A simple moving average crossover strategy needs to identify three moving average factors: trend indicator, slow-moving and fast-moving.
Through a simple moving average, traders can quickly identify different trend directions to set up buy and sell indicators.Bottom Line
Learn how to become a successful part-time forex trader before becoming a full-time ace in forex trading with a broker regulated by a financial service authority. Explore and choose the best forex trading broker like Zerodha or Upstox, which provides the best services to its clients.
Among all these forex trading strategies, it is hard to decide which one is best. So ultimately, an investor needs to determine it himself. Forex trading is a process of trial and error. So, to know which is the best forex trading strategy, you need to try every method by yourself.