The very essence of trading binary options very similar to sports betting, and this is no secret to anyone. Here we simply place bets on the growth and fall of quotes. No volumes for real market our rates do not create. Such simplicity and accessibility of binary trading attracts a crowd of beginners who, without understanding the essence of the matter, simply start to poke two buttons, maybe they'll be lucky.
Many people follow this tactic. They are the majority, which, according to statistics, is 90% of traders who are never destined to succeed. And all because of the fact that they adhere to the wrong trading tactics.
Not a single binary options trading strategy for beginners offers chaotic poking at the buttons in the working terminal. And all because trading is not a casino for you. If you want adrenaline and tickle your nerves, then find yourself an online casino. Serious people work here, traders who learn to analyze the market and achieve success with the right approach.
There are many tools for analysis, and you have a long and painstaking work to study them and choose the most suitable ones.
Beginners love fairy tales about secret and forbidden strategies that are based on a 100% profitable indicator. They believe that such a magic wand exists. The main thing is to find it, even if it takes more than one year. So they roam the Internet for years in search of this Grail, stumbling upon scammers and enterprising swindlers who, under the guise of the usual Moving Average, give out the same Grail.
All strategies for binary options beginners simple and public. And even more so free. Just remember that the same strategy can produce different results in the hands of two traders. It's all about the difference in their tactics. If the strategy for dummies involves clear descriptions of entry/exit signals, then this is the tactic that makes the final decision to open a deal. And here the psychology of trading plays a big role. Some are afraid, others are not.
Money management - as one of the foundations of tactics
A competent binary options trading strategy for beginners is never complete without money management. Beginners simply do not know how to properly manage their money. They can easily put the entire deposit and lose it for one bet.
It is money management that allows you to stay “afloat” even with a series of failures. And all thanks to the distribution of profits and losses, limiting potential losses and profits. It is this kind of money management that helps a beginner to control his emotions. After all, it is much easier to follow a pre-written instruction, and not make decisions in the power of adrenaline in the midst of trading.
All strategies for beginners include, regardless of indicators, a financial component:
- size minimum rate , which should not exceed 5% of the value of your deposit.
- number of losing trades, which you can afford in one day (for example, no more than 10-15% of the deposit). When such a limit is reached, it is better to complete the work for today and continue tomorrow, after analyzing all the errors.
- number of winning trades. Yes, profits also need to be controlled, don't be greedy. Often, traders who got into a series of successful transactions could not stop in time and fell into excitement, eventually losing not only their winnings for today, but the entire deposit.
The psychological aspect of trading
portrait of a young female psychiatrist in session with a young male patient
Your financial result, like the market, will develop dynamically, and sometimes very unpredictably. Be prepared for what awaits you as a series of losses and success. And this breeds greed, excitement and fear. If you do not control your emotions, then you can become depressed from losing or euphoric from winning.
Such emotions are very exhausting person. To prevent this from happening, we have prepared some valuable tips for beginners that will help you avoid excessive emotionality.
- Do not open the trading terminal unnecessarily. You should not constantly monitor quotes and look for possible entries for a deal. When you open it, we recommend that you do not watch the process, but watch only after the transaction is completed. After all, from your gaze, the market will not move in the direction you need. And constant observation gives rise to unnecessary worries and worries, which can lead to stress.
- Pros recommend using those strategies for binary options beginners that provide alert systems (alerts). This will save you from having to constantly monitor the market. Well, as soon as the desired signal appears (or when the price reaches the desired level), the terminal will notify you about it.
- Don't think in general financial result and in no case do not count to arrive before the expiration of the transaction. This will lead to excessive emotions.
- Turbo options are very attractive, but only in theory. Imagine how nerve-wracking this is, because, in fact, on the minute timeframes, the market is at the mercy of chaotic market noises that are not subject to technical analysis. You are literally playing with luck. And when it comes to losing, it's hard to keep your emotions to yourself. The best strategies for beginners include medium-term market analysis from at least a 15-minute timeframe.
Discipline
Binary options trading is available only to adults. Then why should you think about discipline? When it comes to money, it's hard to control yourself. A person can easily get excited, which will lead to an uncontrolled drain of the deposit. To avoid this, experienced pros advise to always follow a trading plan.
Binary options trading strategies for beginners always include a detailed trading plan. After all, if you do not follow tactics that are thought out in advance to the smallest detail, then you risk being left without money at all.
After a little theory, let's move on to practice.
Correlation based strategy for beginners
Why did we start our review of strategies with such a complex concept as correlation? Because it's the easiest way to make money financial markets. It does not require knowledge of either technical or fundamental analysis.
What is a correlation? This is when assets repeat the dynamics of each other due to the close relationship.
There is also an inverse correlation, when the dynamics of assets are absolutely mirror.
This factor can be successfully used for trading in financial markets. It remains only to choose the correlated currency pairs.
It's no secret that Russian ruble strongly depends on the dynamics of Brent oil. For this reason, with each fall in oil prices, there is a weakening national currency. And paired with the dollar, USD/RUB is seeing an increase in the rate. On a graph, it looks like this:
Trading strategy for beginners based on moving average
In the initial stages, trading tactics should not be complicated. Due to the lack of proper experience, a novice trader may experience confusion in the indicators. For this reason, there is no need to choose overly complex instruments such as the Ichimoku Cloud or ADX.
A strategy based on moving averages. Traders like to experiment not only with the period, but also with the number of movings on the chart. At first, you can limit yourself to one moving average with a period of 50.
The trading rules for such a strategy for binary options beginners are simple - when the moving average candle crosses the Moving Average from the bottom up, we conclude a deal Higher. And if from top to bottom - Below.
MACD
Many binary options trading strategies for beginners are based on the famous MACD indicator. At first glance, it may seem complicated. In fact, this is one of the best tools for predicting future price dynamics.
This universal indicator allows you to determine not only the direction of the trend, but also its strength and moments of trend reversal. MACD is a mixture of moving averages, oscillator and histogram.
The MACD indicator generates many signals. At the very beginning, only the intersection of the movings will be enough for us.
To open an up option as part of our strategy for binary options beginners, we wait for the histogram to go into the positive zone (above zero), and the moving averages to cross in the negative zone.
To buy an option Below, the movings must cross already in the positive zone of the scale, and the histogram crosses with the zero level from top to bottom.
Bollinger Bands is the best trading strategy for beginners
If you prefer short-term trading, then you should pay attention to the Bollinger indicator. This tool is ideal for flat. It is a channel within which the price moves.
Accordingly, when the price approaches the upper border, then with more chances are it will bounce down. And when to the bottom, you should open a deal to increase.
The Bollinger strategy is best used in conjunction with candlestick analysis, since you need to be able to recognize a false breakdown and a reversal moment.
In 80% of cases, the price really moves within the channel drawn by the indicator. But in 20%, one of the boundaries is broken, after which the price rushes towards the breakdown, forming a stable trend.
This can be recognized by Price Action candlestick patterns, which are formed at the borders of the lines.
This trading strategy for beginners works great on the 5 minute timeframe. In this case, we conclude transactions for 3-5 subsequent candles.
Alligator Trading
Many experienced pros trade exclusively on this indicator, which is able to successfully determine the moment of the trend's inception. It was created by a successful trader Bill Williams. This name often flashes in technical analysis. After all, Bill is the author of many instruments that have already become classics.
Visually, on the chart, the indicator is represented as three moving averages with different periods.
The main signal occurs when three lines cross simultaneously.
Conclusion
The best binary options trading strategy for beginners is simple. In the review, we have listed the most effective indicators that you can combine with each other. From this, the efficiency of work will only increase. We also recommend using them in tandem with graphical and candlestick analysis.
Now come through to consider some forex strategies for beginners, with which we will already trade and earn.
Before you start trading, you will need to open a demo account on which we will test our strategies. We figured out how to open the demo in the previous lesson. It is worth saying that you can open an unlimited number of demo accounts, so if you suddenly run out of virtual money on your account, then do not be shy, select “File” at the top of the terminal, then “Open account” and open a new demo account.
Before we begin to analyze specific forex strategies for beginners, it is worth giving you a few simple recommendations, the observance of which will save you nerves and make your trading more profitable. I hope you really stick to them, and do not forget immediately after reading (it is better to write them down or print them out).
- Do not climb into the jungle. Believe me, in order to earn money you do not need any complex strategies, with a lot of cunning indicators. Use simple trading strategies for beginners. Perhaps later you will “twist” something there and it will become better, but at the start this is more than enough to make a profit.
- Do not trade on small time frames. As practice shows, the more deals you make, the less profit you get. You will trade on time intervals of M15 and below and will have to sit at the monitor all day long and at the same time you will earn practically nothing, and possibly even lose. It is recommended to work on H1 and higher time frames.
- Do not change forex strategies for beginners like gloves. You work on large TFs. There will not be many transactions here, and therefore it is not worth making a conclusion about the performance of a particular strategy after a few days. Work for at least a month or two.
- Don't look at the chart all the time. The price from this does not move in the direction you need. But you will spoil your nerves, besides, you will get tired and lose concentration.
- Never move the stop loss in the direction of increasing the loss.
Description of forex strategy for beginners №1
This strategy is best suited for trading on the H1 time frame. There will be few transactions on it, in the region of 30-40 transactions per year, so you can open 10 different currency pairs and trade all at the same time. The result will be 300-400 transactions per year. That is, approximately one transaction per day.
This strategy uses only one MACD indicator with parameters 5.34.5. By this indicator, we will watch the divergence (I'll tell you what it is a little later).
In order to add the MACD indicator to the chart of your chosen currency pair, click on the "Insert" menu at the top of the terminal, then select "Indicators", then "Oscillators", then "MACD". After you have done all this, you will see a window like the one below. Set the same parameters as in the picture and click "OK".
Further, as part of our forex strategy for beginners, we will understand what divergence is. Divergence is a divergence between the price chart and the indicator readings. Naturally, in words it is not very clear, so we will analyze it with a specific example.
In the figure below, on the price chart, it is clearly seen that point 2 is above point 1. But if you look at the MACD indicator chart, you can see that everything is the other way around: point 1a is higher than point 2a. We have considered an example for an upward movement. Now consider for descending.
On the price chart, you can see that point 5 is lower than point 4, and point 4 is lower than point 3. But on the indicator chart, everything is again the opposite: point 5a is higher than point 4a, and point 4a is higher than point 3a.
This discrepancy is what is called divergence.
We continue the description of our forex strategy for beginners. The first thing you do is look for divergences. Once you find it, go to the next step, during which we need to build a trend line (we figured out how to build them in the second step). Now let's figure out how to build them.
Our entire price model (hereinafter we will call the model a pattern), on which we will work, consists of four points and three segments (hereinafter we will call them waves).
Points 1 and 3 are tops (for an upward movement) or bottoms (for a downward movement) along which divergence is observed. We put point 0 where the price movement to point 1 began. We put point 2 where the movement to point 3 began.
If you look at the figure below, then I think you can easily figure out which point to put where.
After we have decided where which points are and in the presence of divergence, we proceed to plotting a trend line. You need to build it from point 0, through point 2 and further (in the figure above this is a gray dash-dotted line).
Now, within the framework of the forex strategy we are considering for beginners, it is necessary to wait until the trend line is broken by a valuable one. In the figure above, this happened at point 4. After the breakdown, we build horizontal line through point 4 and when the price returns to this line, we conclude a deal. In the picture above, we should have bought at point 5.
As soon as you have entered into a trade, be sure to immediately set a stop loss. It should be set five points below point 3 (if the deal were for sale, then 5 points higher). Also, do not forget about the take profit, which should be twice the stop loss. That is, if the stop loss is 50 points, then the take profit should be 100.
After the price (after opening a deal) passes in the direction we need, the distance equal to stop loss, transfer the deal to breakeven (that is, move the stop loss to the entry point).
On this, perhaps, we will finish with the description of our first forex strategy for beginners. For a better understanding, I provide one more picture, which shows four examples of making deals using this strategy, both for buying and for selling.
To all those who are the most novice traders and are only making their first steps in Forex, I advise you to stop reading the article on this note. Another strategy will be described later, but you should not try to use two strategies at the same time. Understand first thoroughly with one, and then with the second, otherwise you will get a mess in your head. You will return to the second strategy later (by the way, add this page to your bookmarks, otherwise you will forget where you found this material).
As for the second strategy, it is intended for use on the H4 time frame. There will be even fewer transactions on it than on the previous one, but you already know what to do to get more positions. As part of this forex strategy for beginners, we will use two indicators - an exponential moving average with a period of 200 and an exponential moving average with a period of 50.
In order to add a moving average to the chart, you need to select the "Insert" menu at the top of the terminal, then "Indicators", then "Trend", then "Moving Avarage". After that, you should see a window in which you need to set the same parameters as in the figure below:
Then do the same operation again, only for the second time in the "Period" column put the number 50, and of course change the color.
As a matter of fact, the description of this forex strategy for beginners is so simple that I don’t even know which side to start with :). In general, we buy when the moving average with a period of 50 (in our figure it is red) crosses the moving average with a period of 200 (green) from the bottom up. We sell when the opposite is true: the moving average with a period of 50 crosses the moving average with a period of 200 from top to bottom.
Stop loss is placed 100 pips above (to sell) the 200 period moving average or 100 pips below (to buy). As the price moves, move the stop loss so that it is always about 100 pips away from the moving average. As for fixing profits. Set take profit three times as much as stop loss.
Perhaps that's all. As part of this article, we have considered two trading strategies for beginners, with proper application of which you can make good money on Forex. The main thing is not to forget that we are still learning, so do not rush to a real account right away, practice at least one or two months on a demo account.
In short, do not rush, in the following lessons we will talk more about your career as a trader.
If something is not clear, ask in the comments. I will answer during the day.
Not a single newcomer will be able to earn consistently and a lot in trading. If someone told you that with 100 dollars in your pocket and an absolute lack of understanding of the topic, you can earn money for a new car in six months, roll up your lip. Trading is hard.
However, you need to start somewhere. Do you agree? Otherwise, you can be left with nothing for a long time. Nothing can fully compensate for the lack of knowledge about trading. Therefore, first of all, start studying the field if you want it to bring you income.
It is not necessary to become a guru in order to start trading with a profit (even if not the biggest, if not always stable, but a plus). It is enough to choose an effective strategy for beginners in binary options.
On our website in the "Strategies" section, we have already talked about dozens of options. However, not all of them are suitable for novice Wall Street wolves. Today we will recall the simplest binary options strategies for novice dummies.
Yes, in terms of efficiency, they cannot be attributed to the best. However, you can earn. And even more so, the income will be higher than when concluding transactions at random. Well, let's not delay any longer. We will try to describe as many strategies as possible in one article.
Two moving averages
We have already talked about the option using two moving average lines. Go to the article for details. Now we will recall only the main points of its use.
We will also tell you one secret that will allow you to conclude transactions with much greater accuracy. Now you will not find this option on another site.
So, to begin with, you need to impose 2 moving averages with different periods on the chart. For example, 5 and 25. We recommend doing this in the Meta Trader 4 terminal. Of course, you can even use the broker platform if it allows it, but soon you will find out why it is better to use this particular trading terminal.
We will conclude deals at the intersection of lines. When MA with a period of 5 breaks MA 25 from top to bottom, open a trade for a fall. When crossing from the bottom up - to increase. As you can see, everything is simple. And during the trend, it is also effective. However, if you start trading in a flat, you can drain the deposit.
You can search for signals on any timeframe, and we conclude deals with an expiration of 3-5 candles.
You can see that only 2 out of 4 trades closed positively. Not the best stats. Do you want better? Then download another indicator for MT4. It's called THV4 Coral. You can download it by clicking on this link https://yadi.sk/d/LZkDmH6I3HJmyz (duplicated at the end of the article).
By setting the indicator, a line will appear on the chart indicating a trend. When it is green, we only open up trades. When red - down.
We see that 2 moving averages gave us 2 signals. One is down, the other is up. THV Coral at the same time shows the presence of an uptrend. Therefore, we only react to a bullish signal.
2 Stochastics
The paired use of one indicator is popular among traders. The binary options trading strategy for beginners "2 Stochastics" is also simple to disgrace.
As you understand, for work we will use one of the most popular oscillators with different periods. The settings of the first indicator are 21, 9, 9. The second one is 9, 3, 3. We will conclude a deal when both instruments show an exit from the oversold zone (buy a Call option) or overbought (buy a Put option).
An example is in the screenshot below.
There is no need to explain anything further here, because everything is really simple. Just a reminder that Stochastics do not have to exit the overbought/oversold zone at the same time.
Parabolic + MACD is one of the best binary options strategies for beginners
In the list of the best binary options strategies for beginners, we could not help but insert a variant that is also based on two options, but this time different. For trading we use Parabolic and MACD with standard settings.
Even individually, these indicators can give good signals. Therefore, using them together, you can achieve even better results. How are we going to do it? Open a live chart. Next, expose these tools. You can change the visual options to make it easier to follow the chart. Technical parameters do not change.
Now let's move on to finding entry points. We open an up trade when the following conditions are met:
- Parabolic dots are under the candle;
- MACD histogram is above the zero level;
- The MACD lines crossed and headed up.
We conclude a down trade if:
- Parabolic dots above the candles;
- MACD histogram below zero level;
- The MACD lines crossed and went down.
According to observations, it is this binary options strategy for beginners of the three options described that shows the best efficiency.
Absorption model
Unlike the previous options, this strategy does not require the use of any indicators at all. Need only candlestick chart. An additional plus will be the ability to build support and resistance levels, since with their help you can weed out the majority false signals.
The engulfing pattern consists of two candlesticks. It looks like the screenshot below.
The main condition for the formation of an absorption pattern is that the body of the second candlestick is larger than the body of the first one. Thus, it supposedly absorbs the previous bar.
This model is reversal. Most likely, after its occurrence, the price will continue to move towards the last candle. On the chart, the engulfing figure appears often, so you will not sit idle. But the problem is that if you follow only this condition, you can easily run into a false market movement. Remember, we said earlier that the ability to build support / resistance levels would be a useful quality? So, let's look at how to use them in trading.
We see a confident uptrend on the chart, and the support line confirms this. On bounces from the level, engulfing patterns often occur. Here we are waiting for them.
In the screenshot below, the arrows mark the candles, at the opening of which we enter a trade.
By making trades only on pullbacks, we deprive ourselves of about 70% of all signals, but the benefit of the remaining 30% is much greater. Checked.
As for expiration, it is better to open a deal for 4-5 candles, no less.
Pinocchio
After describing the strategy for binary options beginners, we were about to sum it up. But they remembered another option. The pin bar is also a candlestick pattern that can be profitable. Therefore, let's make a kind of the best binary options strategies for novice dummies.
Pinocchio - a combination of three candles, which indicates a trend reversal. How this model looks like, you can see in the screenshot below.
Now let's remember the entry conditions.
- The body of the pin bar (candlestick with a long wick) must be within the previous bar;
- The next candle breaks the low (or high) of the pin bar).
You can open a deal either at the close of the third candle, or not wait, and enter immediately after the breakdown. How is it better? The first option will reduce the number of false signals. But the second one creates a big "safety cushion" in several points. Therefore, if the signal is correct, the probability of a positive outcome increases. Both options have their own nuances. So choose after testing.
The standard expiration time is 3-5 candles. However, trading on the minimum timeframes is unlikely to succeed, since such a figure does not always have time to form in 1-15 minutes. In general, if all the described binary options strategies are for beginners, it is the pin bar that gives fewer signals. Therefore, as the main trading option, you are unlikely to be able to use the pattern.
So, we have prepared for you a collection of five popular strategies for beginner binary options dummies. Do not expect that they will bring huge profits and triple the deposit in a few days. Not even a paid strategy is capable of this. Each of the options has disadvantages. However, they can bring profit if you correctly approach each strategy. Test and practice. With experience, you will either hone your skills using the chosen methods, or you will be able to create your own, more effective one.
Many have tried to make money on the Forex market. Only a small part of novice traders continued their education after the first stages of familiarization. And only a few consistently earn this type of trade. The thing is that for successful Forex trading, you should take into account many nuances, learn the methods of analysis and other factors that help you earn. Today we will tell you about six of the most simple, proven and reliable forex strategies for beginner traders.
The simplest forex strategies for beginners:
Is it possible to trade and earn on Forex without knowledge?
There is only one answer to this question - no. By registering for the first time with a broker, you will not immediately make a profit. Making deals, you can only count on luck. Next, we will talk about strategies that will help beginners earn money. But even for this, you should have basic information about the Forex market. If you understand that there is no easy money in trading, and have already begun to study important aspects, then the trading methods proposed below will help you not to lose your deposit and even increase it. Well, let's not delay any longer and move on to the description.
Line rebound strategy
Haven't mastered the many different indicators that Meta Trader offers yet? You won't need them to trade with this strategy. However, first things first.
As you know, 70-75% of the time the market is in a flat, that is, the price practically does not change. And only in 25-30% we can observe a trend movement up or down. So, for trading, we will be interested in these 25-30% of the time.
Trading during the flat and against the trend is almost a 100% guarantee of losing the deposit. But if you choose the right time to enter during a trend movement, you can make good money.
essence
To trade, you will have to learn how to put bounce and resistance lines on the chart. It is not difficult to do this, however, if you do not know, we will tell you. But first, let's explain why the strategy is so effective:
- The probability that the trend will continue its movement is much higher than its reversal or transition to a flat;
- The trend movement does not change until the corresponding signal appears.
Given these factors, you can safely trade on a rebound from the support or resistance line.
How to draw lines
IN trading terminal MT4 should select the desired asset and combine the last 2 lows or highs and continue the beam. In the first case, this is a support line, in the second, it is a resistance line. At the same time, the lows should be directed upwards, and the highs should be directed downwards, because we will trade on a rebound. Trade will continue from them.
Purchase
In an uptrend, you should find the last 2 lows and overlay the corresponding line. 2 times the price has already touched the support level. Now, when it reaches it for the third time, you should open a long buy position.
Stoploss and TakeProfit should be set depending on the current volatility. Stop must be at least 30-40 points. Take should be 2 times larger than the loss. It is preferable to trade on the EURUSD currency pair, and the timeframe of the bars should be 4 hours (H4).
And in conclusion, a small oveet. You can make a deal if the price touches the line for the fourth or fifth time. But after that, the probability of a breakdown increases significantly and it is better to refrain from trading.
Sale
To begin with, you should draw a line along two lower highs, which will indicate the presence of a downtrend. As well as in the case of buying, you should wait until the price touches the line. At this time, we open a short trade down.
As for the brake lights, they are identical to the purchase. Stoploss - 30-40 points, TakeProfit - 2 times more.
The strategy of trading on a rebound from support and resistance lines does not contain abstruse formulas, it does not force you to use several indicators and charts at once. Everything is simple, but, nevertheless, effective. Therefore, if you do not have a large arsenal of knowledge, you should take this method into service.
However, this strategy is not the only one that allows you to earn on Forex without professional skills. Therefore, let's forget about the rebound from the lines for a while and move on to the following methods.
Free Candle
Free Candle is another outrageously simple strategy. It has several advantages at once:
- Ease of understanding and application. Just one indicator that does not require special knowledge to understand;
- Ability to make multiple transactions per day. The Free Candle strategy was designed to trade with M15 on the chart. Compared to H1 and older, there is an opportunity to trade much more often;
- Versatility. The strategy is equally effectively applied on various currency pairs. This means that you will definitely not be left without a suitable signal. It is also worth noting that you can trade during any session, although it is better to limit yourself to European and American, and leave Asian to others.
Description
When analyzing the market, an average moving EMA line with a period of 9 is superimposed on the chart. Its main task is to show the average price value. Have you used this indicator? If yes, then you have probably noticed that some candles are located below or above the line. At the same time, neither the body nor the shadow touches her. It is they who are called free, which will serve as a signal for entry. But at the same time, the candle must meet the following requirements:
- In a bullish trend, the opening price of the candle should be lower than the closing price;
- During a bearish trend, everything is exactly the opposite: the opening price is higher than the closing price.
Purchase
You should find an asset on the chart of which there is an uptrend (EMA is directed upwards). Now you should wait for the appearance of a free candle that meets all the necessary requirements.
Next, you need to wait for the signal candle to close. If its final price is higher than the maximum value of the previous pattern, then at the opening of the next after the free candle, we open an up trade.
The stop loss must be set at the low of the signal candle. Count the number of points of a free candle and multiply them by 2. The resulting value is TakeProfit. You need to postpone it from the level of opening a deal up.
And at the end, a little advice: when the price has moved in the right direction from 70% of the distance between the stop and the opening point, the trade is transferred to breakeven.
Sale
If there is a downtrend, you should wait for the appearance of a free candle, and after its closing. Entering trades with a short trade and a decrease is worth it if the closing price of the signal candle is lower than the previous maximum.
Stoploss must correspond to the maximum of the free candle. Take profit is calculated in the same way as in the case of a purchase. Do not forget about the transfer to breakeven after passing 70% of the way.
Have questions? Certainly not, because the strategy is really simple and will be tough even for a beginner. But if you still didn’t learn something, reread the section again and try the method in practice. And then proceed to continue, because this is not the last strategy that can bring income in Forex.
one look
Do you think that for Forex trading you always need to analyze the situation on the market for a long time before making a deal? Do you think that trading gurus and no one else can make deals just by looking at the chart? What do you say if we can prove that you can find an entry signal in a few seconds? Don't believe?
Description of the strategy
You don't have to stick to hard conditions to trade with the One Look strategy. Of course, they are, but they are quite simple, so you don’t have to cram:
- Currency pair - any;
- Chart timeframe - D1;
- Indicators - EMA 5 and 12, RSI with a period of 21. The latter, in addition to setting the period, needs additional settings. The oscillator has standard levels of 30 and 70. You need to remove them and set one - with a value of 50.
entrance
Now consider when to enter the market. You should enter into a buy deal if the fast moving average with a period of 5 crosses the slow one from the bottom up, and the RSI line is above 50. You need to trade for sale when EMA 5 crosses EMA 12 from top to bottom, and the oscillator shows a value below 50 .
Exit trading should be in the event of a re-crossing of the moving averages or when the oscillator crosses the level of 50.
The only drawback of the strategy is a small number of transactions. However, this is more than offset by simplicity and efficiency.
Definition and construction of a trend channel
To determine the trend - every novice speculator should learn this. Without this skill, there is nothing to do in Forex. But having mastered it, you can start making money without bothering with formulas and indicators. Don't know how to spot a trend yet? Then read on, and even better, pick up a pen and notebook.
The price is constantly rising or falling. This is one of the biggest newbie misconceptions. In fact, the price almost always moves in a narrow price range, which you need to be able to determine. This movement is called a trend, and there are three types of it:
- Ascending (bullish) - the price during this time may fluctuate up or down, but in general there is an increase in price;
- Downward (bearish) - during this trend, the price decreases, but this also does not mean that you will not see rising candles;
- Lateral (flat) - during this time the price does not suffer significant changes, and the market is in consolidation.
Trend line and channel line
A trend line connects the last two highs in a downtrend and the two extreme lows in an uptrend. In one of the previous strategies, we have already analyzed this.
The channel line is drawn parallel to the trend line. Thus, price fluctuations should be carried out within the corridor, which will indicate the presence of a trend: downward, upward or sideways.
The trend channel is a great opportunity making a profit. It is recommended to open a deal on a rebound from one of the lines, and close it when approaching the second one. Thus, the lines can be effectively used to fix stoplights. So, for example, in an uptrend, Take Profit is set at the level of the upper line, and Stop Loss is set at the level of the lower one. With a downtrend, the situation is different.
If the price has not reached the channel line, then the trend is weakening and may soon change direction.
Strategy with MA and ADX indicator
At first glance, it may seem that the strategy is somewhat more complicated than the others. It uses 2 indicators, one of which shows several lines at once. But don't get upset right away. Even if you have just started trading Forex, this TS will be right for you.
So, set up the following indicators in the trading terminal:
- MA - shift 0, period 20, apply to close, type - exponential;
- ADX - levels 20 and 50, apply to close, period 14.
The strategy is equally effective on any currency pair. And TF can be selected from M5 to H4. But we recommend stopping at the M30 or H1.
Purchase
- The +D1 line breaks through level 20 from the bottom up and stays there;
- The trend strength line remains at the top of the indicator window;
- The price approaches the moving average and touches it.
When all 3 points are completed, a buy deal is opened. Take profit to stop loss ratio should be 2:1. The latter is set at the level of the nearest minimum, and then the take-take selection is calculated.
Sale
- +D1 breaks through level 20 from bottom to top;
- The trend strength line also remains at the top;
- The price approaches the EMA from below and touches it.
Feet. Stoploss is guided by a local maximum. To get take profit, you should multiply the number of points by 2 times.
By adhering to money management and trading conditions, you will be able to trade effectively on each of the proposed strategies. And having gained experience, you can adjust them for yourself and increase the number of successful transactions.
In bright, high-profile advertising, everything is so easy and beautiful: novice traders get quick profits with minimal time, go to a permanent income. In reality, the situation looks somewhat different: the majority of beginners play by intuition, for short time ruins the bank. Only a clear, proven strategy will allow users to foreign exchange market achieve the set goal. We will tell you what trading strategies for beginners exist on the Forex platform today and how to use them correctly.
What should be the strategy for beginners
Trading strategy in the foreign exchange market - business tactics, a model for determining the moments of opening and closing transactions. There is no consensus on which scheme is ideal for beginner traders. Each person is individual, has specific skills and abilities. One is easily given technical analysis, while the other uses indicators and charts.
When choosing an investment model, beginners should be guided by personal preferences. For example, a strategy full of terms, indicators, complex formulas will be difficult to understand. If the user of the Forex market does not perceive the work of one or another analyzer, the investment of capital will be erroneous and will lead to losses. You should not completely abandon indexes, it is advisable to choose two or three as a basis and familiarize yourself with their purpose in detail.
Forex strategies for beginners should be simple and straightforward. The best option is a scheme that will not require constant training from the trader, long-term contact with the trading platform. At the initial stage, it is better to spend small periods of time investing so that each step is meaningful, deliberate. Gaming experience does not come immediately.
Basic recommendations for setting stop losses, choosing take profits, and foreign exchange assets greatly simplify trading. Detailed description The algorithm of the system operation allows the investor to understand the principle of operation of charts, the formation of a trend. Therefore, the client of the market without much difficulty independently selects and concludes profitable deals.
It is recommended to avoid strategies with high declared profitability. High returns always go hand in hand with maximum risk. A beginner is not ready to operate professionally own capital the probability of loss is very high. It is very difficult to earn millions from the first day of your stay in the foreign exchange market, it is better to increase the amount of finance by a few percent, but steadily.
Today, dozens of simple tactics have been formed that are ideal for inexperienced traders. Each scheme includes elements of popular programs. A beginner after standard training is able to independently decide on trading instruments and create a system of rules.
In most cases, it is most effective to use a plan worked out over the years. Professionals actively share their experience of building successful business, post videos, conduct forums, webinars, publish articles. These materials provide real statistics on the formation of a business, describe the effectiveness of a particular strategy. Before making investments, it is better to spend extra hours getting to know the reviews, rating, than to regret the lost money later.
The easiest and most profitable strategies for beginners
Without a doubt, there is no perfect trading strategy that works for high returns and minimal risks. But several optimal programs have been created that will help novice traders receive stable profits. medium size from the first deal. Let's tell you more about the six most simple, but really working strategies in the Forex currency market.
RSI-6 strategy
This is the simplest Forex strategy that any beginner can handle. She works on halves of five and fifteen minutes. The scheme is based on the fact that any currency pair at least once a day forms a significant jump in the quote. The analysis uses the Bollinger Bands and RSI indicators, the latter should be set for a period equal to six, and levels of 20.80.
The best time to trade on this tactic is when major players enter the stock exchange. They dictate the conditions for the formation of a trend, and the course movement is most accurately reflected in the charts. Such phenomena occur in the European, American sessions.
The analytical scheme works on the prediction of the reversal frequency. If the direction of the exchange rate changes with enviable regularity, then the market is actively trading. If the trend is down, then the trader expects the quote to fall for several points. Despite the fact that the price of the currency moves in one direction, there are slight fluctuations in quotes. This strategy is based on them, and a decent amount of capital is able to back it up.
It is worth starting with small amounts of investments, then gradually the size increases. Be sure to fix at least ten candles, use several indicators. We must not forget about the control of the news feed, since events in the international market, in politics, the economy directly affect foreign exchange trading.
Among the brokers, on whose trading platforms the RSI strategy works perfectly, we should mention Alpari, InstaForex. The scheme will not bring the user millions of winnings, but will allow you to receive stable rewards from investing. The RSI indicator works great in a highly dynamic market, where the moment of reversal is clearly fixed. The tactic is often used on binary options, scalping, one-day trades.
Candlestick reversal
The no-indicator strategy works great on any time frame and with a variety of financial assets. the main objective- identification of candles and miscalculation of the potential for trend changes. If the momentum depth is shrinking, a reversal is most likely approaching, or a price rollback will occur. The fundamental principle of trading is in great demand among traders and brings good profits.
Up to fifteen investment signals are recorded every day. A candle is determined on the analyzer, then a change in the trend line is expected. When the trend strength weakens, deals are made.
The best option is to gain experience in candlestick reversal in a demo account. The market client keeps a diary of events, fixes statistics on contracts. After receiving the starting skills, the trader is ready to start real trading. The strategy will allow you to earn small amounts money every time you visit the terminal.
It is important to have a good knowledge base before using this tactic. If the user builds false resistance and support lines, and trading figures are far from ideal from didactic materials, the deposit is threatened with ruin. When constructing lines, it is worth taking into account the near periods.
PriceAction-5
This is a set of tactics combined into one strategy. The name of the tactic comes from the fact that five basic principles of technical analysis trading with minimal risks are taken as a basis. The program is suitable for any time period, but works best for a period of four hours or more. Therefore, this method is ideal for busy people who are not ready to devote all their personal time to trading.
For successful trading, it is important to identify the most obvious support and resistance levels, indicated by frequent and obvious price jumps. It is not worth highlighting all the fluctuations, it is very distracting and confusing. The most accurate subjective forecast will be made by a trader with good trading experience. To designate a trend line, successive descending and ascending points of the quote movement are connected.
Another component of the model is the so-called psychological level. This term appeared among professionals; there is no clear interpretation of it. Figuratively speaking, this is a figure or segment during which the user expects to make a deal. Fibonacci levels are considered the fourth component of the tactics; every trader encounters them when he first visits the trading floor.
Additionally, pin bars are used, which form a long tail when the quote changes, as well as engulfing bars, when the element completely overlaps the previous wave. Trades are opened immediately after the formation of confirmation bars. Stop loss is set based on their resistance levels or local extremes. According to statistics, it is confirmed that the PriceAction-5 Forex strategy is ideal for a beginner and carries minimal risks.
SonicR
To implement this tactic, short-term fifteen-minute intervals are used. The entry points are analyzed along the lines of resistance and support. The system is positioned on the search for strong impulses, the formation of price waves, and is ideal for any currency pairs and instruments. Ease of use SonicR strategies due to the minimum of analytical data: only the indicator of moving averages is used.
Before you start trading, you should decide on a currency pair. At the London session, optimal trading operations on the EUR/USD pair, on the Asian one - AUD/JPY. The tactic suits long term trading and scalping.
The moving average indicator is present on almost any trading platform. At the intersection of the lines, signals are determined, the principle of making strategic decisions is built. MovingAverage - an average model for calculating the opening and closing of a price flow. In practice, traders use two types of moving averages - slow and fast. The periods of their formation differ almost twice.
Moving averages are an indicator of the strength of a trend. When the lines cross, the probability of a trend reversal is predicted. This moment will be ideal for entering the market. To buy, a situation is chosen when the slow moving average crosses the fast one from the bottom up. Sell trades are opened on opposite terms.
It is important to understand that the program works with fewer errors during the formation of a trend; in a flat, this technique is inefficient and unprofitable. Therefore, it is especially useful to identify the phase of market trading during the analysis stage.
Professionals are able to recognize a trend in a matter of minutes, for beginners it will take a considerable amount of time. New users of the exchange draw lines between peak highs and lows. If the growth direction is fixed, the trend is up and vice versa. When the dynamics of price changes varies in the corridor, it is recommended to refrain from trading.
A classic strategy that has existed in trading for decades, but does not lose popularity. It allows the player to take an inside look at currency trading, assess the potential for big trends. This tactic is especially simple for novice investors: you don’t have to track the close relationship between currency pairs or conduct lengthy technical analysis.
To determine the entry point to the market, it is necessary to select charts on the movement of quotations for three weeks for the main currency pairs (Major). Two indicators optimize the forecasting process: Donchian Channels and The Classic Turtle Trader. But the user has the right to independently depict candles on paper. True, it will take a lot of time and effort.
Traders buy assets when the rate exceeds the trading line, sell when it falls. If the price of a currency pair varies within one corridor over a twenty-day period, you should not make deals. There is a high probability of a quote reversal or unpredictable fluctuations. Potential risks for transactions using the Turtle strategy are 1%.
It is important for every investor to invest safely and profitably. The best advice from professionals is to use capital in trading that is not capable of damaging personal and family budget. When finances are not enough, no tactic will help to increase them many times over in a short time. And the psychological pressure will be at its maximum level because of the fear of losing everything. Profitable investing is easy with a deep knowledge of the analysis and fundamentals of the foreign exchange market.
When choosing financial asset it is recommended to evaluate the potential volatility, study the statistics of winnings and the percentage of profitability of such transactions. Additionally, it is important to choose a trading session: the Asian and Pacific are not particularly profitable, while the European and American trades are aggressive, in which beginners can easily increase or lose the pot.
Novice traders need to determine their trading style: spend a few hours on the stock exchange or devote minimal time to trading. Here it is worth considering that long-term contracts are easier to predict, while scalping and intraday transactions require a high concentration of attention, logic and thinking.
For complex and incomprehensible strategies, it is better to devote more time to mastering the theoretical material, and then only to practice. The best option is training on demo accounts. Here, the market client manages virtual finances, there is no risk of losing real money.
It is worth noting that no strategy will be perfect. Therefore, it is recommended to constantly study the international currency market, test new tools, indicators. Constant development and improvement of trading will allow you to trade successfully and productively.
Before increasing the size of the traded lot, it is better to test the tactics on small amounts. It is useful to listen to the advice of professionals, read their articles, watch video reviews. If a beginner does not have the necessary skills, it is better to choose well-known currency pairs for trading, you should not take risks on exotic transactions.
To reach a stable income, it is not enough to choose good strategy, you will have to keep trading statistics, mark and analyze the most difficult moments. This approach will allow the trader to gain experience, reach new level and make the investment profitable.
A common mistake novice traders make is creative ideas. Each player strives to improve the strategy from the first days of investing. As a result, the client of the foreign exchange market loses vigilance, misses the most important points and doubles the risks. It is better to choose tactics and clearly follow its rules for opening and closing contracts.
Reliable Russian and foreign brokers offer dozens of ready-made strategies, each of which is more suitable for beginners. Analyst products are aimed at this client group. Traders use the tactics of famous, successful investors until they gain their own experience. It is optimal to choose a strategy with a minimum number of indicators and analytical tools. The profitability of trading directly depends on the amount of capital, concentration of attention, emotional stability of the individual.
