Forex, short for Foreign Exchange, is a fast thriving market. It is operational round the clock, 365 days a year, and is a market that dwarves the value of trades by stock exchange market. So what makes it such an attraction to a completely new person? Why would anyone want to dive into a market this steep and try their luck to make money? The answer is simple, Forex Trading is for anyone who wants to trade, no memberships, no prior experience, just a will to trade and some currency to exchange. For a complete beginner, there can be a lot of ways they can start out in this industry, they can go hard and rash, without preparation, of course, which is almost certainly going to cost them more money than they make. Or they can do their research about the market before deciding to test the waters. Obviously, the sensible way would be to learn more about the market, its trends, and the strategies successful Forex traders use to maximize their revenue, so let’s take a look at those strategies.
A long term strategy that is also focused on determining the trend in the market and then make your move accordingly. Whenever the market goes past the limits of its consolidation period, it creates new highs and lows. This new high and low, in turn, creates another trend, and in order to create that trend, a breakout is set to have occurred. It is a very profitable tactic, and many of the new forex traders, who aspire to reach the pinnacle of the field, opt for this strategy to test the waters of their game.
This strategy is not purely for beginners because even professional Forex traders make use of this tactic to break the ice. In this method, the trick is to profit from the difference between the values of two currencies. The basic idea behind this strategy is to use the difference in yield between two currencies to their maximum potential and gain the most profit from it. It comes with its fair share of drawbacks, not more than its profits, but you wouldn’t want to lose money on trades now, would you?
At investing seminars and coaching classes, Pin Bar Trading Strategy is the very first tactic they teach to new and prospective Forex Traders. This tactic is taught to the folks soon after they are taught what is Forex, and it works on discerning the pattern and trend set by the market and following along with it. It also happens to be one of the easiest strategies to follow, so more incentive in learning it. This tactic is based on the market’s ability to come into a resistance and then breaking through that resistance to create a new trend. If you check out the plotted graph of this move, it will look like a bullish pin bar, which is why it is called Pin Bar Trading, in the first place.
Similar to the Pin Bar in some ways, but different in others, the Inside bar strategy is another pretty good entry level Forex trading tactic taught to absolute newbies. This strategy is apt for continuation pattern, which means we need to push in the direction of where the market is headed, by using a pending order.
Trend lines are one of the simplest forex trading strategies of all times, it doesn’t even make use of any complex tactic, just a ruler and a pencil. All you have to do is chart a line between the high and the low of the market, the resulting line will give you the direction of the trend in the market right now, and will set you on your way to total domination.