Learn Basic Strategies - Currency Market Strategies

New traders using simple strategies should learn a few basics. This knowledge helps make their trades more successful in Forex.

After someone learns how to examine indicators and charts for trading, they will need to come up with simple plans. The simple trading plans a new trader uses can be based on the most commonly used simple plans in Forex.

Moving Average Strategy

· MA Strategy

MACD basic strategies

MACD Strategy

RSI basic trading strategies

RSI Strategy

Bollinger Band basic strategies

Bollinger Band Strategy

Stochastics 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 developed their strategy, it is crucial for them to include additional elements that can enhance the effectiveness of their fundamental strategies.

1. Money Management Guidelines

2. Forex Psychology

Equity Management Strategies

Money management guidelines should be included in your basic plans: these guidelines will assist you as a trader in handling risk. This means that you will make use of 2 forex money management guidelines, these are risk compared to reward ratio and a technique to lower draw-down when putting your trade orders to figure out the lot size you will use in the market. The most common Forex money management guideline used in forex, and the one you should include in your trading, is the guideline that says a forex trader should never risk more than 2% of their account's total value on just one currency trade.

For a deeper understanding of these two essential forex trading money management rules, traders should check out the money management lesson found in the "Learn Forex Lessons" section on this website, specifically under the "Forex Key Concepts" courses.

FX Trade Psychology Mindset

To do well in the forex market, traders need to learn about the psychology of forex trading. The right mindset for forex trading to succeed is to not be afraid or greedy when trading, and to have the discipline to always follow the rules and strategy, trading only when the strategy says to. If disciplined, traders will only trade when their system gives a signal. They will only follow their trading strategy completely every time, trusting the system. A disciplined trader also won't start trades just because the market is going up or down, but will wait for a trading signal to come from their trading strategies.

For forex trading mindset and emotion control, check the psychology guides. They're in the learn forex section under key concepts.

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