- Forex Trading for Beginners: 3 Profitable Strategies for 2020
- 3Simple Forex Trading Strategies that Work | Market
It is far faster to learn, master and become profitable with one strategy, than trying to learn a whole bunch at the same time. You can always add more and more strategies when you are profitable, but profits are the key.
Forex Trading for Beginners: 3 Profitable Strategies for 2020
Parallel Strategy One of the easiest trading strategies is to follow pairs that tend to move in the same direction or parallel when the US Dollar strengthens or weakens.
3Simple Forex Trading Strategies that Work | Market
The basic foundation of trading in the foreign exchange market consists of understanding how currencies are quoted and what the exchange rates represent. In the Forex market, all currencies are quoted in pairs. This is why the act of Forex trading involves simultaneously buying one currency against another currency, which is sold.
This means that you don’t have to cover the full position size, but only deposit a fraction of it to cover the possible losses. As long as your trade is active, your FX broker will lock up the required margin and only free it back to you once the position is closed. This enables traders to execute much larger trades than they could otherwise afford.
The next thing to understand is that currency pairs always have two prices: the Bid price and the Ask price. This is the two-way quote system used for buying and selling of currencies. In simple terms, the Bid price is the price at which you can sell while the Ask price is the price at which you can buy.
The first two strategies we will show you are fairly similar because they attempt to follow trends. The third strategy attempts to profit from interest rate differentials, rather than market direction.
Did you know that it's possible to trade with virtual currency, using real-time market data and insights from professional trading experts, without putting any of your capital at risk? That's right. With an Admiral Markets' risk-free demo trading account, professional traders can test their strategies and perfect them without risking their money.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Most traders come to trading for money and lifestyle. When choosing your strategy, think about what you are trying to set up and achieve with your trading.