Starting a Forex career is a complicated thing since beginning traders should learn multiple skills, master new concepts, and find the best Forex strategy for consistent profits. The success of your future trading career highly depends on the correctly chosen strategy of behavior on the market since this type of activity is very risky.

Forex stands as the largest financial market in the world. It features the highest level of liquidity, with an average trading volume of $6,5 trillion per day. If compared to the New York Stock Exchange, this volume exceeds more than twice, making Forex a luring arena for traders.

The Concept of Forex Trading Strategy

Speaking about a trading strategy, the term can be defined as a set of rules that help traders make key decisions, understand the market situation better, and minimize risks. A properly developed strategy allows for coping with the following questions:

when it’s the right time to enter a trade?
what is the right way to manage it?
when it’s the best time to close the trade?

The level of strategy complicacy varies greatly, ranging from simple to very complicated. It depends on possessed skills and experience of the trader.

Basically, traders tend to use technical and fundamental analyses to develop their strategies and seek suitable trades. The first one is simpler, while the latter requires a deeper knowledge base.

If you’re looking for a reliable platform for markets online trading, pay attention to FXPrimus. It is a reputable broker that provides its clients with access to the Forex platform and its instruments.

How to Develop the Right Forex Strategy?

When trying to find the answer to the question “What is the best strategy for forex trading”, you should take into account the following factors:

Trading style. The right market behavior depends on the time when trades are open. So, make sure to adjust your strategy for your schedule. For example, daytime traders stick to moderate strategies, while scalpers close trades in 5 or so movements.
Risk tolerance. Risk management comes as a fundamental concept of Forex trading. Define for yourself how risky your approach can be and what behavior you can afford.
Time commitment. Decide how much time you want to spend on this activity and what involvement you expect. Some trades feature minimum engagement, while others require constant monitoring.

In trying to find the best way to manage their Forex careers, most traders stick to mastering their skills and approaches in demo mode accounts. Backtesting comes as another working method to try new strategies. Do not neglect demo testing since it is a risk-free way to try new skills.

Another common mistake is to incorporate too many technical indicators into one strategy. Beginners try to put too much information into one strategy, which results in overload and extra complicity.

Keep studying new trends in the Forex market since tools and methods are evolving. So, strategies require constant improvement.

Common Strategies for Beginners

Now, let’s move on to the most effective Forex trading strategies for beginners. If you’re just beginning your career, the next methods help avoid risk and minimize losses due to poor understanding:

Price Action Concept. This strategy is focused on price movements rather than technical indicators. In this case, traders avoid data overload but can suffer from unexpected breakouts.
Range Entry Approach. In this case, traders need to identify and trade within consistent support and resistance areas. They should act within certain ranges, within which an instrument moves. Here, great attention is paid to non-trendy indicators, such as the average direction index. The lower it is, the weaker the trend.
Trend Approach. According to this method, traders define moving trends and gain capital on them. A consistent analysis of instrument movement over a certain timeframe is used.
Position Trading. It’s a long-term approach targeting major trend movements. In this case, traders keep their trades open for weeks or months. They should be highly disciplined and patient and not react to short-term disturbances.
Day Entry Strategy. It’s a short-term trade that is closed within a day, without holding it overnight.
Scalping Strategy. This approach implies profiting from small price changes. Usually, deals are closed within a few minutes or even seconds.
Swing trading implies holding positions for several days. This approach is suitable for patient traders who are fond of analyzing the market without a rush.
Carry Trade concept uses interest rate differentials to get profit. In this case, holding a position can bring a sustainable interest.
Breakout Strategy. Here, traders identify the areas of strong market movements to trade entry.
News Analysis. Here, traders assess how particular news affects the situation on the Forex market and leverage market movements triggered by political, economic, or social changes in the world.
Retracement entry implies capitalizing on short-term price reversals within a major trend.
Grid Analysis. Traders use a network of buy and sell orders to alter trades.

Advanced Forex Strategies

Answering the question “What is the most profitable trading strategy”, one of the following approaches can bring a big profit:

Bounce Strategy. Traders make a thorough analysis of historical support levels and open deals, based on the obtained data.
Running Out of Steam Method. This approach implies analyzing resistance levels for selling opportunities.
Overbought and Oversold Concept. Traders analyze such indicators as the Relative Strength Index (RSI) to identify overloaded instruments and enter the trade timely.
Breakdown Concept. It implies opening deals when the market falls below a support level.

Now, you know which trading strategy is the best for beginners and skilled traders. Note that ungrounded emotional trading won’t bring you a long-term stable profit. Thus, it’s important to learn how to analyze the market and the key factors that influence it, as well as develop the right strategy that will help minimize risks and avoid some mistakes, increasing your chances for a successful Forex career.