3 Best Forex Trading Strategies For Beginners

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1. Position Trading Strategy

The Position Trading Strategy is one of the best forex trading strategies for beginners who are very new to the concepts of fx trading and want to get hands-on experience with lesser risks and effort.

This strategy works by focusing entirely on long term positions that last for weeks, or even years in some cases!

Traders using this strategy keep their leverage relatively low and aim for profits using the bigger price movements that last longer periods.

Patience is the key for position traders as they trade like fishermen waiting to hook a big fish.

One of the best things about position trading is that it does not require you to be glued to your trading account and charts all the time.

Minor price fluctuations are no cause for worry as they are insignificant for a position trader’s plan.

2. Carry Trade Strategy

The Carry Trade Forex strategy is said to be one of the most unique ones among fx traders as it lets them make a little extra profit if they time it correctly.

The Carry Trade strategy lets traders take advantage of the interest rate differential that arises between two country’s currencies.

Traders make extra profit by following this strategy by selling out the currency of a country with significantly lower interest rates and buying the currency of a country that has a higher interest rate.

The difference between both the currencies’ interest rates will play a significant role in your profits if this particular strategy is in effect.

3. Conclusion

Picking the right strategy may require you to properly research the market and expand your knowledge of it.

Remember to stick to the basics especially when you are a beginner and keep experimenting with them to form your custom trading strategies.

You must never underestimate the market and have backup plans ready in case your predictions or analysis was wrong.

Furthermore, many of these strategies require you to have a healthy amount of capital so be sure to research every one of them and determine which one suits your trading style the best.

Once you have mastered the basic ones and firmly grasped the principles behind them, move on to the ones that are more complex, and improve your skills as a forex trader.