Get to know 8 Forex Trading Strategies for Beginners to Easily Get Profit

 

 

 

 

 

Before we discuss the safest forex trading strategy, it's a good idea to get acquainted with the meaning of forex trading.
(What is forex trading?? ) Trading Foreign Exchange (Forex) is a financial activity that trades currencies from various countries as instruments.

Foreign currency trading exists to meet the needs of the world community who need currency exchange in order to obtain a product or service. 

If we used to know forex trading as limited to exchanging foreign currencies at money changer outlets or conventional banks at certain times, now you can trade forex online with real-time price trend movements.

While what is meant by a forex trading strategy is an effort to plan and implement it to maximize the profits and benefits of forex trading activities in the foreign currency market.

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         There are at least eight forex trading strategies that are not only safe, but also able to provide potential profits for both novice and experienced traders. The following is a forex trading strategy that you can try  

• Trading Forex ( Scalping )
  

          Another popular forex trading strategy is the scalping strategy. This strategy works on a market with high volatility but has a price difference that is not too far from its normal point.

To be able to profit trading with this scalping strategy, you need to provide a large enough trading capital because this strategy uses a price difference that is not too far away in a short period of time.

There are at least three indicators that can be used in a forex scalping trading strategy. Here's the explanation:

 

• Bollinger Bands Indicator

Bollinger Bands are scalping strategy indicators for forex trading that show price movements relative to volatility over various time frames.

By utilizing the Bollinger Bands indicator, you can find out the overbought or oversold points of your trading assets.

In addition, you can also detect potential price reversal trends or trend reversals due to fluctuations according to volatility in the market. 

 

• Moving Average Indicator

Moving average is a common indicator that traders use to determine the time frame and shows the average price of forex trading over a certain period of time according to the wishes and needs of the trader.

This indicator moves in certain time frame periods such as period 5 (showing time frame for 1 week), period 20 (showing time frame 1 month), period 60 (showing time frame 3 months) and others. 

 

• Stochastic Indicator for Scalping

The third scalping strategy indicator is the Stochastic Oscillator (SO) indicator which is often referred to as a momentum indicator.

After you know the overbought or oversold point, you can use this indicator to determine the benchmark for buying signals when the price movement line intersects the SO upper line or vice versa.

 

 

• Forex Trading ( Range Strategy )
  

          This strategy is considered to be the simplest strategy and is easy for traders to understand. Where is the simplicity? This strategy uses the concept of price movement of a currency that will return to its starting point at a certain time.

To be able to use this strategy, you must understand technical analysis of forex price movements and understand the points of support and resistance.

 

• Day Trading Strategy
  

         As the name implies, this forex trading strategy is used for traders who want to make transactions and execute trades on the same day.

If you want to apply this trading strategy, you should first prepare the trading objectives and the analytical calculations that you will use. This needs to be done so that traders do not lose the opportunity to gain trading profits that occur in this short period of time.

Some things you have to prepare to implement a daily forex trading strategy include equipping yourself with an understanding of entry strategies, withdrawal strategies, technical analysis of price movements, and controlling emotions well so as not to get carried away in Day Trading.

 

 

•  Swing Trading Method
  

           This swing strategy combines technical analysis and fundamental analysis at once. Forex technical analysis is used to analyze prices in the forex market moving in a short period of time without focusing the analysis on the forex performance.

While fundamental analysis is used to assess the performance of a trading asset over a long period of time.

In swing trading forex, optimal trading profits can be achieved by relying on the trader's objective assessment of the forex performance chosen over a certain period of time and making trading decisions based on the trend of price movements in a short period of time.

• Trend Trading Strategy
  

          Actually this foreign currency trading strategy is very simple. But if you don't or don't understand the trend of price movements that are happening, instead of making a profit, you might even be faced with potential trading losses.

The price of foreign currency or forex in the market will continue to move and form a pattern. You can use the various patterns that are formed to analyze potential profits or the direction of movement in the market.

In this strategy, you can choose to follow the current trend (Follow Trend), or choose to take decisions that are contrary to the trend (Counter Trend).

There are at least three trends in forex price movements that you need to know so that your trading analysis is right on target.

• sideways

In a sideways trend, not much forex trading activity occurs because both forex buyers and sellers are waiting for a definite price movement trend before deciding to release, hold, or buy forex assets during a sideways trend.

In fact, many traders hold the principle of “a wise trader is a trader who can restrain himself”, especially when market conditions show sideways conditions.

• Uptrend

Literally, this trend shows price movements that tend to rise. In the investment world you may have heard the term bullish which also means rising price movements

• Downtrend

The opposite of an uptrend, a downtrend is a trend of trading price movements in the market that shows a downtrend. The forex trading strategy that you can do is to determine the highest point (Resistance) and make a decision to sell forex or make a buying decision when the price is at the lowest point (Support).

• News Trading Strategy
  

          It is common knowledge, when there is news with political issues, economic news, security, and social news, the price of forex and other trading assets will usually be affected.

You can also rely on news and issues that occur as a forex trading strategy. Similar to the trend strategy, you can choose to follow the trend according to the current news, or choose to take decisions that are contrary to the existing news trend to maximize your trading profit range.

• Trading Strategy At Closing Session
  

           In trading transactions, you need to understand the open positions and close positions in the foreign currency market.

Open position, as the name implies, indicates the opening price taken by a trader in trading activity. Traders can choose between taking long or short open positions.

If you want to use this strategy in forex trading, you need to pay close attention to the open price position and the close price position and calculate the estimated difference between the two. The difference number that you find can be your trading profit on the asset.

The time period between the opening price and the closing price also indicates whether you are a trader or an investor. If you make the decision to close a trade on the same day you open it, then it can be said that you fall into the category of day traders.

• Macro Trading Strategy
  

          The next trading strategy is the macro strategy. This strategy uses a broader perspective to analyze the trend of forex price movements in the market.

The point of view taken is usually the macroeconomic point of view of a country, such as the trend of market movements in the long term, the country's international relations with other countries, the country's business cycles and behavior, the trading activities that occur, to the history or values adopted by the country. the.

The existing trading strategies are the result of study, research, and trial and error experienced by many experienced traders in the world.

In the course of finding the best forex trading strategy, not a few successful traders have experienced failures and losses due to the implementation of inappropriate strategies.

You certainly don't want to experience a similar failure, do you, Trader? To be able to apply the safest and most profitable forex trading strategies, you just need to take the time to learn them.

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