4 Profitable and Reliable Strategies to Follow To Become a Forex Pro

If you gave yourself the trouble of exploring the world of forex, at least theoretically, then you have already memorized the rule ‘learning first, trading second’. Now it is time to actually put this rule to practice and delve deeper into the key principles of trading – and making money out of it. As a beginner, you have to educate yourself about currency pairs, indicators, analysis, signs to watch out and steps to take to minimize the risk.

But let us assume that you’ve done with it. What are you supposed to do next? Get your money and bet them right away? Surely not. Next, you have to inform yourself about trading strategies that suit beginners and to see how the technicalities you have memorized actually help you to read charts and predict trends accurately.

A reliable sign of a professional trader is having a plan and sticking to a chosen trading strategy consistently. So now you are going to transit to the next level of mastership and pick a strategy to practice.

Channel trade strategy

The simplest and the easiest to use and yet one of the best strategies is channel trade. It means that you look at the ‘channel’, i.e. the space between two parallel lines that mark support and resistance levels, and see where the trend is going. The market is really volatile and trends are regularly changing, so you will soon have a chance to earn something. It is better to wait till the price hits the upper or the lower bar of this corridor and then open a position –  buy if the trend is heading upwards or sell if it is heading downwards.

Breakout strategy

Similarly, you keep an eye on support and resistance levels but wait for that moment when the price breaks through either of them. Like, it goes above the resistance level or falls below the support level. If the price goes up, through the ceiling, you should open a long position, and if the price falls through the ‘floor’, open a short one. Just remember to use a stop-loss tool below or above the bar indicating a breakout (a candlestick) to minimize the risk.

Pin bar based strategy

A breakout is usually indicated by an unusually long bar on the chart – a pin bar. When you see it forming, you actually see a newly forming trend, hopefully, beneficial for you. This pin bar can point upwards or downwards, meaning that a trend will go in this new direction. So you can open a pending bearish or bullish order (sell-stop or buy-stop) above or below a candle, and benefit from a trade when the new trend stabilizes.

Triple candlestick trading

It resembles the previous one, but here you look not for an anomalous pin bar, but for three consecutive candlesticks that move upwards or downwards one after another. See them like steps leading to an upwards or downturn trend. The difference between price changes marked by these candles will be rather small, but the general trend will be visible. After you determined this trend, you can open a corresponding position.

These strategies are enough to help you make the first independent trading steps. But we recommend that you trade with a demo account first, fine-tune your understanding of the market intricacies and only then dip into your pocket for real.

TIME BUSINESS NEWS

TBN Editor

Time Business News Editor Team