Trade up today – join thousands of traders who choose a mobile-first broker. Ultimately, once you select a top-rated Copy Trading pro – you can sit back and invest in a passive nature. This means that you won’t need to spend countless hours researching the forex markets yourself. Regarding the software option, this will come in the form of a forex EA – which is essentially a trading robot. You will purchase the robot from a third party, and then install it into MT4.

The take profit is 50%-100% of the last candlestick, but it is often better to exit the trade manually. When the previous condition is met, expect a candlestick to appear below the moving average. There must orange line of Trend Envelopes at the signal candlestick.

Range trading strategy

The pin bar and inside bar are two of my favorite strategies for the beginner. Notice how the bar preceding the inside bar is much larger in size. This bar is called the “mother bar” because it completely engulfs the inside bar. The real magic to this strategy comes after the consolidation period, which is represented by the inside bar, on a break of the mother bar’s range. This is an advanced technique, but do spend some time to understand this concept, how it works and it will pay off in the long run. However, the downside to this technique is that if the market does reverse up higher, you would have exited the trade prematurely.

  • Get familiar with a winning Forex trading strategy “24 hours”, yielding more than 200% of profit annually.
  • So, check out these four forex trading strategy guides and choose the one that is best for you.
  • Swing traders might also buy ahead of support or sell before resistance levels that develop on the charts of the exchange rate for a currency pair.
  • It is a popular strategy among beginner traders as it doesn’t require a large investment of time or capital.
  • I slacked off for several days after I hopped on without any knowledge and lost some.

Forex analysis describes the tools that traders use to determine whether to buy or sell a currency pair, or to wait before trading. Another common strategy is to implement stop-loss orders, which means that if the market takes a sudden move against your position, your money is protected. Breakout trading involves taking a position as early as possible within a given trend. A breakout occurs when the market price ‘breaks out’ from a consolidation or trading range – this is typically when a support or resistance level has been met and surpassed.


If you have a full-time job and you cannot dedicate yourself to trading, you may want to use the swing or position trading strategy. Otherwise, scalp and day trading could be ideal for you if you have the time to analyze the market and monitor the screens what is the forex grid trading strategy throughout the day. One thing is for sure – every forex trading strategy is suited for beginners. So only these two currency pairs should be traded when using this trading strategy. Our forex day trading system focuses a lot on price action.

best forex trading strategy

Forex scalping is a trading strategy that involves buying and selling currency pairs in quick succession in order to make small profits. It is a popular strategy among beginner traders as it doesn’t require a large investment of time or capital. Technical analysis involves evaluating assets based on previous market data, in an attempt to forecast market trends and reversals.

Recently I have started following your channel on YouTube and I hope to learn from it. There were trades where I went long and the moment everything reversed, I felt I am so unlucky. The trading strategy that suit me is Day trading because i have enough time and energy to spend in front of the screen.

best forex trading strategy

They involve accurate points on where to enter and exit a trade — only by following specific rules can you stay afloat in Forex trading. This works great with trending pairs that are slowing losing steam. In the two EURUSD day trading examples above, that is exactly what happened. Check out a detailed description of the trend following forex strategy in this article. Or read this detailed description of a forex trade built on trend following strategy. When you’re just starting out as a trader, it’s essential to keep things simple.

So instead of letting the market hit your stop loss fully, you can exit ahead of time and reduce you reduce the size of your stop loss to be near 0.5 or 0.6 R of loss or 0.6. If you’re going to capture a longer-term trend, then you can use 4 or 5 ATR as your trailing stop loss. The whole chandelier stop would kind of look distorted and you’ll know it’s time to exit your trade.

EToro, for example, offers a free demo account with $100k in paper trading funds. This will mirror actual market conditions and thus – you can backtest your forex trading strategy. But fortunately, there are various methods used to establish and develop a forex strategy, each with high potential rewards and risks ingrained in the strategy.

5 Best Forex Trading Strategies Traders Need to Know

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