So it appears to a beginner that the market is so easy to win, just buy or sell and take your profits. It’s only after losing, filling and losing again that the beginner realizes that trading takes less of luck and more of a real methodical approach. The search of this absolute method takes you to ten of hundreds of tradable strategies and soon you realize that life is a little too short to test each one of them and then selecting one for a use. So when do you settle down on your strategy and when do you start getting rich?
To get rich, its important that you keep your trading restricted to the basic Forex strategies for beginners and not let your mind wander for more profits or the quicker profits. The basic strategies that we identified in our last article were range-trading, breakout-trading, pullbacks and trend- continuations trading. Out of all these, the best Forex strategies for beginners is the range-trading strategy where he has to simply prepare his rules of identifying a trading-range for a pair on his chart set- up. This could be as simple as using high and low of the day as your range-barriers and then starting to trade within them. So every time the pair moves up, you come short and when it goes down, you go long but you ensure that during all your activities, the pair strictly remains inside the range. This Forex strategies for beginners calls for abandoning the chart as soon as the ranges are broken and then the trader is expected to move on to the next chart where the pair now is trading within its daily high and low range.
It’s only after gaining mastery over this basic method that the trader learns to also deploy other indicators and other Forex strategies for beginners which could be as nice as breakout pullbacks also. Of course, you also learn to trade without a stop-loss as you gain experience but to start with, the Forex strategies for beginners calls for using a strict stop-loss and a strict profit-target. There is also the fact this strategy calls for an exit at the sight of the first possible opportunity instead of waiting for second or the third profit target levels.
There is another aspect of beginner-level trading and that relates to his psychology. A beginner tends to close positions even before reaching his profit-targets and even without the position triggering the stop-loss when it goes negative. This happens out of factors like greed and fear where the negative movements on your positions start affecting your temperament and hence your strategy. The range- trading Forex strategies for beginners can control this aspect as the beginners feel comfortable and do not fiddle with their negative positions as long as the boundaries are defined and pair is within the given range. After a few weeks, the beginner develops the required temperament to become an expert as he gets accustomed to seeing his range-bound position running in losses without shedding those tears of blood and that is the stage when your trading starts paying you and you start becoming rich.