Various kinds of trading strategies for beginners, to trade until they get a big profit

Various kinds of trading strategies for beginners, to trade until they get a big profit

4 Simplest Trading Strategies for Beginners

1. Crossing Moving AverageMoving Average or (MA) is the most common trend indicator that is widely used by novice traders or who have long been in trading. MA is often used to identify the direction of the trend, when the MA is below the price, it confirms that the price is currently in a bullish or rising trend. Conversely, when the MA moves above the price, it means the current trend is identified as bearish or decreasing.
Techniques for forex trading with MA usually rely on the moment of crossing. When the MA crosses the price, the indicator line changes position and indicates the change in direction of the trend.


2. Overbought and Oversold

Overbought is a condition in which the price increase has reached the maximum area, so the price will go down. Or vice versa, oversold or oversold indicates the condition of prices that have fallen in the lowest area, so that the next price will rise again as before.

Overbought and oversold prices are not visible in movements on the chart. To see it, signal instructions from oscillator indicators such as RSI, Stochastic, CCI are needed. Besides being different in terms of appearance, each indicator has an overbought and oversold benchmark that is not the same.


3. Trading Sideways

Sideways is a situation where prices move stable and tend to level off (not going up as in a bullish trend or decreasing as when a bearish trend occurs). Movement like this happens quite often, but not many traders use it because it is considered less potential.

If a trader knows forex trading techniques in the sideways market, profits will be very easy to obtain until the profits are greater. This strategy relies on the levels of support and resistance that are the lower and upper limits of prices in a range.

Resistance support can be determined from many things, starting from the manual way by looking at price patterns, psychological levels, Fibonacci tools, or Pivot Point methods. This principle is basically, when prices hit support that has been tested, the price will bounce up. When the price approaches the tested resistance, the first possibility must be. It is anticipated from such movements that prices bounce down after failing to break the resistance line, so you must be even more thorough.


3. Breakout Trendline

In contrast to the sideways strategy, this forex trading technique is effective when the market is trending up. Trendline is a vertical line that acts as support or when prices rise, or when price trends decline.

Breakout occurs when prices suddenly break the trendline and change direction. Then the trendline line must be tested strongly, then this breakout signal could be the beginning of a reversal or price reversal.


How to choose the most suitable trading strategy for beginners.

> Whatever your forex trading strategy choices later, don't ignore these 4 important things
Always pay attention to the fundamental issues that are happening. Even if you rely on technical analysis, price movements are driven by buying and selling sentiments which are often influenced by fundamentals.
> Use the price action method to confirm the indicator signal. Price action is a price pattern formed on a chart. The size of the candlestick is a reflection of the behavior of buyers and sellers. So in fact, you can recognize important patterns in price action to confirm the reversal or continuation of the indicators.
> Always apply risk management to anticipate losses. No matter how good the forex trading techniques you use, there is always a loss opportunity that must be borne. So you should anticipate these losses by minimizing losses through risk management rules.
> Try to discipline you in applying forex trading techniques. Trading strategies will not work optimally, and you will more easily fall into trading mistakes beginners who still like to leave trading techniques to speculate, before trading you must first understand the strategy if you already understand the strategy, then you will benefit.
Various kinds of trading strategies for beginners, to trade until they get a big profit Various kinds of trading strategies for beginners, to trade until they get a big profit Reviewed by Kampus Seo on March 27, 2020 Rating: 5

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