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 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 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.