Forex Trading Strategies For Beginners

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The word strategy in itself carries a deep connotation, as it refers to a tight long-term plan that aims to achieve the goals and objectives, but what are trading strategies?

In the forex market, traders seek to achieve the largest possible amount of profits in the shortest period of time and with the least possible effort, as it is illogical for the trader to analyze daily trends and price movements with all tools and methods of analysis and relying on all available indicators. for effort.

In fact, financial market experts and based on their long experience in trading have been able to identify some of the secrets of this market, and have developed trading strategies based on certain data that have been strengthened with time and practice. They tested it well and recognized its strengths and reinforced it, as they recognized its weaknesses and tried hard to overcome it. Indeed, such strategies have helped shorten time and effort, in addition to achieving meaningful profits.

Internet sites are filled with a large number of different strategies, including currency trading strategies, stock trading strategies, and gold trading strategies. Some of these strategies are provided by the owners for free, and the other part is sold for a fee.

How do I choose the best forex trading strategies?

While browsing the Internet, and searching for topics related to trading in the financial markets, it is natural that you have read a lot about scams under the name of trading strategies. Unfortunately, this already exists, as the need of novice traders is exploited to pass such lies, but in return, there are successful trading strategies that have already contributed to the profits of many traders.

For this reason, the trader who does not have enough time to trade and make his own trading strategy should search extensively in order to be able to reach sufficient information about the entity that provides such strategies and their level of experience. Past and present who acquired it and had experience with it, and to ask about their satisfaction with it and the contributions it made.

How do trading strategies work?

Some trading strategies are designed to work automatically without the need for trader intervention. They are fully programmed based on some technical indicators and different methods of analysis. Another part of these strategies requires the intervention of the trader in one way or another, whether before executing the deal or during its execution, where the trader has the ability to open and close the deal and control various orders such as the stop loss order and the take profit order.

On the other hand, there are trading strategies that work completely manually, meaning that all their details are managed by the trader and do not rely on any pre-programmed expert advisors. It cannot be judged at all that any of the previous types is better than the other, as all of these strategies have strengths and weaknesses, and it is first and foremost up to the trader’s desire and preferences.

Types of forex trading strategies

Trading strategies are divided according to a number of bases. For example, it can be divided, depending on the time factor, into three types as follows:

1. Scalping Strategy

They are short term trading strategies, which some traders call day trading strategies. This is because such strategies depend on very short trades that are opened and closed on the same trading day, as some “scalping” trades take a period of time from a few minutes to 24 hours.

The important thing is that this type of traders tend to have psychological comfort, as they close all open trades at the end of the trading day, regardless of their results, whether they achieve profits or losses, and start a new trading day with new deals.

Forex scalping Forex Trading Strategies For Beginners
Forex scalping is a short and fast scalping strategy

2. Swing strategy

They are medium-term strategies, where the trades take a period of time from one day to a month. This strategy is distinguished from scalping in that it saves time and effort, but may be less in terms of profits. In fact, the profits in any of the strategies depend on the ability and experience of the trader and the strength of the strategy he is using.

3. Long-Term Trading Strategies

It is the ones in which the deals take a long period that lasts for several months or years, such traders are trying to enter into deals from historical levels, which prices have not reached for long periods, in other words they try to enter with the beginning of the trend and get out of the deal at the end of the trend regardless of the period of time that The transaction may take.

This type of traders tend to be completely relaxed and their goal in financial investment is to accumulate wealth.

What are the best trading strategies?

It is not possible to be certain that one of the previous strategies is better than the other, each of them has strengths and weaknesses, and each of these strategies suits a particular type of trader, and not others.

On the Internet and social media, there are many “scalping, swinging, and long-term strategies”, which depend mostly on technical indicators that give signals to traders to enter into deals, and this includes determining entry and exit points, stop-loss and take-profit orders.

We will strive as much as possible to publish some powerful trading strategies and methods that have proven their effectiveness, and if we tend to work as hard as possible and accumulate the experience necessary to create their own trading strategy, what suits them may not suit others.

There are a number of other trading strategies that are specific to a number of financial assets and not others, because these assets differ in terms of the nature of the factors affecting them, and in terms of the technical indicators that are used with them. There are currency trading strategies, stock speculation strategies, gold trading strategies, cryptocurrency trading strategies and so on.

There are also trading strategies depending on the type of traders, there are strategies for beginners and trading strategies for experts.

While browsing the Internet, you will read about dozens of different types of trading strategies, some of which are useful and some that are not worth your time to learn about. There are some global strategies that are widely used, such strategies we will talk about in detail in articles and videos, but the origin, as we mentioned earlier, is that the trader strives to create his own trading strategy.

How do I make a successful forex trading strategy?

First : The trader must have the necessary experience by learning and accumulating experience regarding the mechanism of dealing in the forex market, the various methods of analysis, and all the influences on the money markets. Learning is first and last, and learning is all the time.

Successful Trading Strategies
Creating a successful trading strategy requires continuous education and learning from mistakes

Second : After the trader has a minimum experience and with practice, he will have an initial idea of ​​the trading strategy he will use. Therefore, the next step is to determine the brokerage company that will be chosen to open a trading account with it, and the process of choosing a forex company is not easy, as the trader must search well and identify the advantages and disadvantages of each company and choose among them what suits his goals, needs and desires.

Third : After choosing the trading company, the investor must initially open a demo account, test the trading strategy to identify its strengths and weaknesses, and then develop it accordingly until it becomes mature and ready for actual trading.

Fourth : After the trader is sure of the strength of the strategy, he must move to work on a real account after relying on God, to start reaping the fruits of what he knows and what he has worked for.

Fifth : The education process does not stop, as the financial markets are affected by many variables, and severe fluctuations occur, so the only guarantee for the continuity of success is the commitment to the correct management of capital and financial risk management along with the continuity of learning and the acquisition of more experience and adjustment to the strategy when There was a need for that, learning first and foremost, as we emphasize every time and every time.

In the end, the frequent use of strategies is not a good thing and distracts the effort and ability of the trader, and success has never been achieved by using indicators and relying on the largest amount of strategies.

Muhammad Waqar

I started to help bloggers and content creators. They teach you the ins and outs of digital marketing so that you can make money from your blog or content creation without any struggle at all!