The easiest forex strategy is what new traders need to get a hang of the forex market. It is one of the things every trader needs to be able to trade the forex market profitably, all things being equal. Seeing as the forex is the biggest market there is worldwide, and that it is really accessible and liquid, it is not surprising that many people have come up with different strategies claiming that they 100% risk free and profitable. Just before we go ahead with the easiest forex strategies beginners should consider; it is worth mentioning that traders should beware of such patter of gold offers. Trading the forex market with no risks at all, 100% profits all the time, and you are a beginner; that is too good to be true.
OK, first, let us start with what a forex strategy is and then we con on ahead to some suggestions that are so easy and good enough to get a newbie on the right career path of forex trading.
WHAT IS A FOREX STRATEGY?
A forex strategy is a set of analyses traders use to trade the forex market in order to make the most advantage of any opportunity to make profits. With regards to the definition of forex strategy, emphasis is on the word “analyses”. It may be so simple to come up with a plan cum strategy on how to trade the forex market, but the quality of it depends on the analysis. Analyses can be made in any of the following ways
- Technical analysis; where one has to study price movement with the help of charting tools.
- Fundamental analysis; observing the factors that affect the forex market, like economic, political, social, and natural forces.
- Sentimental analysis; made based on how traders, with different point of view of the market, feel about a particular currency pair or market condition.
THE EASY NEWBIE FOREX STRATEGY:
This kind of strategy is actually about the basics, but it offers opportunity to make some adjustments with time and advancement as a trader. Here are some pretty easy forex strategies
1. Trading breakouts: This strategy seeks to identify trend formation by looking for price breakouts.
2. Moving average crossover: This is the use of a lagging indicator which uses older price data in its functionality.
3. Carry trade: A strategy with which a trader can make profits from the difference in yield between two currencies.
It is important to take out time and study these strategies really well before trading with it, or it may not be utilized to the fullest and probably cause losses.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.