Learn Basic Strategies - Currency Market Strategies

For new traders wanting to use basic strategies to trade the market there are a few other basics which a forex trader should know that will help to make their basic trade strategies they are using to become more successful.

After one has learned about trading analysis of indicators & the analysis of charts, a forex trader will need to create basic strategies. The basic trading strategies that a beginner trader uses can be based on the following most often used basic strategies in Forex.

Moving Average Strategy

· MA Strategy

MACD basic strategies

MACD Strategy

RSI basic strategies

RSI Strategy

Bollinger Band basic strategies

Bollinger Band Strategy

Stochastic Oscillator Technical basic strategies

Stochastic Oscillator Strategy

A trader can learn about the basics of how to come up with a strategy by learning from the above examples of basic strategies.

Once a forex trader has come up with their strategy, they should also include the following so that to make their basic strategies more successful.

1. Money Management Guidelines

2. Forex Psychology

Equity Management Strategies

Money management rules should be part of your basic strategies - these rules will help you as a trader as a trader to manage risk. This means that you will use 2 rules of forex money management - these are risk:reward ratio and draw-down reducing method when placing your trade positions to determine the lot size that you will put in the market. The most popular Forex money management rule use in forex and the one that you should also add to your trading is the rule which says that a fx trader should never risk more than 2 % of their account equity on 1 single currency trade.

To learn about these 2 forex trading money management rules traders should read the money management lesson that is on the learn forex lessons section of this website under the forex key concepts courses.

FX Trade Psychology Mindset

In order for one to become successful when trading the forex currency market a trader has to learn about forex trading psychology. The forex trading psychology or mindset which is needed to become successful in forex is one that avoids the emotions of fear and greed while trading & is a mindset of total discipline that the currency trader will follow all their rules and their strategy & only trade with signals that are generated by their strategy. With discipline a trader won't trade unless their trading system gives and generates a signal. One will have the mindset of only following their trading system 100% all the time without second guessing the system. A disciplined trader will also not open trades in the market just because the market has started to move upward or downward, instead one will wait out for a trading signal to trade to be derived and generated by their basic strategies.

In order to study more about forex trading psychology & how to manage emotions while trading the forex market a trader can read the forex psychology tutorials from the learn forex lessons section of this website under the forex key concepts guides.

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