Forex trading strategies for beginners
Trading with currencies is known as forex trading, where one currency is traded against another. Therefore, in forex trading currencies are traded in pairs. Trade Wave offers multiple short term trading courses and they also conduct online Forex Trading Course in Mumbai as well. For amateurs or beginners, trading is a difficult task that requires utmost practise and guidance from no less than an expert. Those undertaking any kind of Forex Trading Course in Hyderabad or Forex Trading Course in Chennai, must be able to learn all relevant forex trading strategies that might work in favour of getting you a profit.
Forex trading strategies
By definition, a forex trading strategy is a system that lets you decide when to buy or sell a currency pair. Of the any available, the most famous and widely used ones are technical analysis and fundamental analysis, which helps in analysing the market and make decision accordingly. For a professional trader, it is easy to analyse the market, but for a beginner, certain criteria’s must be put together to define a well laid out strategy. Every trade is different and so is the trader, hence it is not necessary that every strategy will work under every condition. Criteria for a good strategy depends on: time required for execution, frequency in trading opportunities and distance to the target.
Different types of trading strategies
Depending on the above-mentioned criteria’s, there are several types of strategies formulated by the professional traders. Some of the most productive ones are given below:
- Price Action Trading – It analyses historical prices to develop technical trading strategies. It can be used for various time periods from long, medium to short term
- Range Trading Strategy – It helps in identifying support and resistance points, alongside which the traders will place their trades
- Trend Trading Strategy – It identifies market’s directional momentum yielding higher returns. It is most suitable for medium to long time trades
- Position Trading – It focus on fundamental factors and can be used for multiple kinds of trading markets
- Day Trading Strategy – It is basically trading process that completes within a single day which means all positions are closed once the market is closed
- Forex Scalping Strategy – This process ensures small profits at frequent time intervals by making use of multiple opening and closing positions in a day
- Swing Trading – Here the traders look up for rang bound and fluctuating market prices
- Carry Trade Strategy – This technique is done by borrowing one currency at low price and then the second currency is invested in which will yield higher
Forex Trading for beginners – Conclusion
The foreign exchange market is currently the biggest market in the world which means there is loads of options to analyse. For a beginner, trading with forex is most economical as the amount to start is very low and you can earn limitless provided right strategies are applied at right time. Another positive aspect of forex is high leverage, which allows a trader to trade with amount higher than the real account. Although like every other trading, forex too has its pros and cons, but once you master the art there is no stopping in the domain.