FOREX TRADING STRATEGIES FOR BEGINNERS
If you are a beginner in currency trading and are looking for simple trading strategies, you are lucky as it is easier for you to find one that suits you quicker than a trader who has been struggling for years. However, before starting out on a trading strategy, careless emotions should be put aside and as much logic as possible employed.
Being self-aware is crucial for any trader in the currency market. As a beginner, you have to be aware that a larger account does not necessarily mean higher profits.It is better to build your account through organic gains and good trading choices rather than by just pumping money into it. Beginning with a currency pair you understand better such as your nation is a good way to practice and grow your trading skills.The currency pair you choose should also match with your time schedule in order to make the most when it is most active.
Embracing automation and allowing computers to do most of the work for you helps especially in minimizing missed opportunities and maximizing on time. For a newbie in Forex trading, programs can also aid in limiting your loss to a position in a security by setting up stop-loss orders.As you begin, it might be best for you to have a lower and more conservative leverage (lower risk). Taking up a few accounts and holding them for longer duration helps minimize losses if the market moves against you.You should moreover choose a trading broker who shares your plan and has an in-depth understanding of existing marketing regulations.
As a beginner, you will quickly realize that a key technique you have to master first and foremost is being able to read the market and make trading decisions based on the recent and actual price movements. This is not as hard as it sounds. You only need to identify either of the following:
· Support: This is the key value area where demand starts to rise so much that it prevents the price from further decline. It’s the level where buyers go into action and start buying.
· Resistance: This is the area where supply begins to be so high that it stops the price from further growth. It’s the level where sellers find the price so attractive that they sell heavily.
For a beginner, once you have mastered this strategy of finding the two high probability entries in the market ( Support and resistance), you will be able to find high probability price action trading opportunities from any market chart.
Remember to keep your plans, analysis, and practices simple. Some of the greatest traders in the currency market including Warren Buffet employ the K.I.S.S. strategy (Keep It Simple Stupid). Stop looking for the next big thing from unexplored areas in market charts, perfect the art and skill of support and resistance pattern recognition. You will discover that with this strategy, even for a beginner, forex trading can be a piece of cake!