Not all are well versed with the tactics and strategies followed in forex market. Traders who are new to the forex market often fall in to the well of loss and debts. Because of lack of knowledge and tactics, many traders end up losing their accounts and incur losses at par. However, there are a few retailers who believe in stepping back and preparing themselves for the race using a demo account for practice. Those who engage in creating demo accounts usually come back to open a live account, but the results still are limited with negligible profits. To avoid such scenario and losses one has to make sure that he/she has the knowledge about the strategies and platforms. Here are the tips for forex trading for beginners.
- There are three basic types of traders available in Forex market. These are short term traders, medium term traders and the long term traders. It is preferred to work as a medium term trader. This is because the capital investment in both long and short term trader is large. While the former requires investment for covering volatility, the latter needs them generate leverage. You will find many traders who work on these two scales but most of these are people who are financially either sound or have back up from large firms. Hence, for a safer game play as a medium term trader.
- One technique that is used by all the leading brokers and retailers is trend trading. It is often trailed as the most profitableforex trading strategies in the world of stocks. It helps one in knowing about when the security will stay with them in a narrow range. This powerful strategy helps working for long term investment. Under this strategy, buy orders are placed above the top range orders and sell orders are placed below the bottom of range. In case, the prices reach at levels near to your orders, you can easily go on with the market.
- Breakouts are something that we can expect to see any time in the market. They may take place on hourly, daily, weekly or monthly basis. There are people who stay around waiting for the break to come so that they can make quite money. However, rather than waiting for the first break, wait for the best one to come. Find the session when forex is contained within a small range and wait for its breaking. This is when the profit levels are maximum. However, beware of the false breakouts that can make you lose all your profit margins.
- The strategy was named by the famous trader Richard Dennis who was a trainer to ten traders. Using his trading methods, he made immense money from financial markets. According to this strategy, the turtles would be buying security at that time when it will exceed 20 day high by one tick, eventually they will be selling them when the price will be lower than the 20 day low. They had certain rules for position sizing, maintaining pauses and stops, entry and exit points and related tactics.
These are the top forex trading platforms and techniques that will help you in becoming the master of forex market within a short span. So what are you waiting for? Get started with your forex account and earn profits.
Profitable Forex Trading Strategies and Platforms for Newbie