Easy forex strategies for beginners should help even novice forex market traders achieve success in their transactions. Such strategies do not require any extensive or sophisticated skills in currency trading on the Forex market, and may be applied effectively by the beginners, bringing yields.
Experienced foreign market traders tend to use complicated and sophisticated trading schemes, tools and approaches for deriving the greatest results of their forex market activities. However, while such approach is suitable for professional, novice traders might prefer using simpler strategies for plunging deeper into the forex market and for achieving positive trade results at once. In this article, we are going to investigate the best easy forex trading strategies for forex traders.
Breakout Forex Easy Strategy
The breakout strategy is an easy forex strategy free for all beginners wishing to start gaining on forex. In the picture above, bearish bars are illustrated in red color. With growing bearish bars, selling is getting momentum. Therefore, the trader is required to track down closely the trend for identifying when to perform trade taking into consideration the possibility of change in the current trends.
The yellow circle in the picture illustrates the beginning of downtrend (which is confirmed by the fact that the new low broke the previous uptrend low). This largest red bearish bar illustrates a very strong selling momentum. Now, a pending sell order may be place below the bar taking into account the favorable conditions for trade.
This pending sell order is illustrated by the yellow dotted line in the chart. Stop loss is located above the opening and closure of the previous bars (SL line in the picture). The first take profit target is illustrated by TP1 line in the picture, and the final take profit target is illustrated by TP2 line. The two lines stand for the previous and next low, respectively.
So, the breakout is quite an easy strategy of forex trading, and the only thing which you need for effectively implement it is to visualize and check the moment of trend reversal, which is the optimum momentum for entering into the transaction.
Easy Forex Scalping Strategy
The forex scalping strategy is one of the easy forex strategies that work even for novice traders, and it is conventionally used on short time intervals ranging fr om several minutes to 15 minutes or less. For achieving the best results within this strategy, only two indicators are to be applied: 200 EMA, and the stochastic indicator. The main aim of the former is to reveal the trend, and the latter is used as an oscillator showing whether the market is dominated by excessive demand or supply.
For buying under this best easy forex strategy for quick transactions, several preconditions need to be met. First, price needs to
stay above 200 EMA. Next, the stochastic lines have to drive below 20 line and point upward. At this point, the trader has to quickly activate his buy order, immediately placing stop loss 15 to 20 pips away. Take profit in this case will be set to 20 to 30 pips.
For selling under the easy forex scalping strategy, this works in a rather reversed way. Thus, price should be located below 200 EMA, and the stochastic lines have to be above 80 line and point downward. Next, the trader quickly activates his sell order, and places stop loss 15 to 20 pips away. Similarly to the buy setup, take profit in this case will be set to 20 to 30 pips.
The scalping strategy described above is an easy forex strategy for beginners. Still, it should be borne in mind that there are still some risks. Namely, the market may be generating a number of false signals which should be monitored via the 200 EMA angle. When this angle is or is similar to flat, trade should be avoided. Otherwise, if the trader is able to make quick decisions by evaluating the current market dynamics, this strategy may be very effective even for novice forex market players.
100 EMA and Parabolic Stop and Reversal Easy Forex Strategy
This strategy is one of the easy forex trading strategies which beginners may effectively use in their forex trade transactions. It only uses two basic indicators for analyzing the market situations and making the ultimate buying/selling decision: 100 EMA and the parabolic SAR (stop and reversal) indicator.
For buying using this strategy, price has to be located above the line representing 100 EMA. Next, a parabolic SAR dot has to emerge below a candlestick. The trader now has to place a pending buy stop order 2 pips above the high point of the candlestick mentioned above. Stop loss should be placed 2 pips below the closest swing low. The previous swing high in this case is used as take profit.
For selling under this strategy, the conditions are contrary. Namely, price has to be located under 100 EMA, and a parabolic SAR dot has to emerge above a candlestick. The trader than places a pending sell stop order 2 pips below the low point of the candlestick mentioned above. Stop loss should be placed 2 pips above the closest swing high. The previous swing low in this case is used as take profit.
This may be an easy and profitable forex strategy particularly in strong trending markets, wh ere quite evident signals emerges for buying and selling. The use of previous swing extreme points as take profit values is another advantage of this strategy which makes it even more understandable and easier to use. Still, the market may generate false signals as well, and time lags may play an important role. So, the trader should always remain attentive for avoiding unforeseen losses.
Conclusion
The strategies considered by us in this article make only a tiny part of the easy forex strategies for beginners available in the market. Find an easy trading strategy in forex which suits best your goals and skills, and you will be able to start effectively trading an gaining yields from the forex market.
Read Forex Trading Strategies – Best Weekly Forex Strategies
