Thursday, June 29, 2017

Simple Forex Trading Strategy To Trade With

January 18, 2011 by  
Filed under Forex FAQ & Latest Post


In todays forex faq, we have a question from our fellow traders and below is the question

What is the most simple yet powerful strategies can you suggest?

This is a very common questions from most new traders as they are pretty confused about what strategy to trade with. If you ask me for the simple yet powerful strategy, I will suggest 2 strategies for you.

1) Forex Breakout Strategy

If you have been reading my blog, you will know that I often suggest new traders to trade forex breakout. It is because this strategy is very easy to execute and easy to identify.

All you need for breakout trade is to wait for the market to go into consolidation and then wait for the price to break out of the consolidation before you enter a trade in the direction of the breakout.

For more information about forex breakout, you can read this post that I have posted earlier on my blog.

2) Forex Trend Line Strategy

Other than the forex breakout strategy, I will suggest you to trade the forex trend line strategy. As long as you get the first trade right for this trend line strategy, you will be able to make consecutive winning trades as you are in the direction of the trend.

When you are trading the forex trend line strategy, you will wait for the price to break the short term trend line and then take profit at the medium term trend line. Once it breaks the medium term trend line, you will then enter another trade and wait for the price to hit the long term trend line.

The above are 2 strategies that I will recommend to new traders. One advice for those of you who are new to this field, in order to be able to have a good trading strategy, you should not jump from one strategy to another, You should spend more time to hone your skill with one strategy until it becomes profitable before you attempt to learn another one.

Do not become a strategy junkie who spend a lot of time learning different strategies. This will not make you a profitable trader as you do not have the skill to trade with any specific strategy.

Comments

One Response to “Simple Forex Trading Strategy To Trade With”
  1. Dr Julius Ssemakula says:

    Hullo Kelvin
    good work for sure
    Its good you have emphasized that one should perfect one strategy before jumping to another otherwise one can have so many but when none is fine tuned, then its useless.
    The one who asked should also know that easy to relative to so many people because we are different with different capabilities, for example the first strategy Kelvin has told you(breakout strategy) is easy to me but yet not so easy, not because i don’t understand it but sometimes i have frequenting my charts beause i am waiting for a breakout.another example is the trendline strategy, personally i know how to draw the trendlines but not the short and medium term ones. so i cant say thats easy to me because i am yet to practice that.

    My other suggestion of a simple strategy that i personally use is that of the 200EMA but remember easy is relative

    Thanks

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