Any trader needs a strategy for successful trading. Experienced Forex traders recommend beginners to choose simple strategies with only 2-3 indicators at the beginning of their activity.
Simple and complex strategies: what to choose for a beginner?
There are several main reasons why beginners should prefer simple strategies:
- Basic strategies with clear functionality help beginners in currency trading to thoroughly learn the mechanisms of the Forex market;
- They teach a beginner to use combinations of automatic indicators correctly;
- Simple schemes reinforce practical trading skills and help systematize trading.
Basic strategies are the basis for further application of more complex trading systems. With effective mastering of elementary concepts, a trader over time only needs to add technically complex indicators and improve entry and exit positions.
Basic Principles of Choosing a Strategy
When choosing a psychological strategy, it is important to clarify a few points. First, you need to correctly determine the time frame: some traders have unlimited free time, while others have to combine the new hobby with their main job. Secondly, only work with strategies that are to your liking. If the principles of a new system are not to your liking from the start, you must abandon it. Mental calmness is an important component of the successful work of a trader, so the strategy you choose should make your work on Forex comfortable.
At the beginning you should not choose a strategy with a lot of complex terms, formulas or indicators. Working without technical knowledge, based only on luck, will not bring much income. Do not abandon the indicators: a beginner in Forex is enough to use 2-3 tools, but you should thoroughly study their structure and purpose. You will also need a basic knowledge of stop-loss and take-profit.
After the first successful trades, try to combine several strategies, in order to develop a universal scheme “for yourself”. The optimum choice for beginning traders will be the strategy, which will allow earning without constant training and long contact with the trading platform. Understanding the principles of charts and trend formation allows you to easily make profitable deals, which is the main reason to trade on the Forex market. You will also have to find a reliable broker. The easiest way to do this is by using the website here.