Basic Best Forex Trading Strategy Tips for Beginners

The best forex trading strategy new traders can use boils down to personal choice and reality checks. If the strategy requires skills, it’s probably a good one.

The Best Forex Trading Strategy

The best forex trading strategy is one that involves trading either a commodity currency, such as USDCAD. Or a currency pair that is not impacted at all by any commodities and the US dollar. In the case of the latter, traders need to choose carefully. A truly independent currency pair where the risk of the US dollar is removed. As well as commodity market risk. Such a currency pair can be predicted through analysis on the related local economies. Beginners will have a hard time trading any US dollar cross. Even USDCAD is often confusing, but because of its strong correlation to crud oil, it tends to obey technical analysis strongly. Learning how to trade forex through a truly independent currency pair, will offer less confusion. In any case, the pairs to avoid are popular pairs, such as EURUSD. Even though this is the largest pair, by trading volume. The confusion is enormous, and there is no evidence that EURUSD leads over other correlated markets. EURUSD can be a follower pair just as easily as many other markets. The truth is, most popular currency pairs are difficult and too confusing to trade.

Beginners are Impatient

Beginner traders are usually impatient and want to reach success overnight. They want o literally trade for a living very soon. Thinking that they are smarter than everyone else out there. And yet, at the same time they do use trading tips which are at least partially wrong. Classic trading rules and tips are for the most part not relevant to actual trading. If they did work half as much as their reputation hints. Then profitable trading would be piece of cake. Beginner traders don’t question the validity of these rules and tips. Because they think that the older generation of traders has figured everything out. Beginners can trade forex online, starting with a simple currency pair, ideally not a popular one. They should rely more on chart price patterns over all other indicators. And partially on longer term fundamentals. The probability of success increases dramatically if also the daily news is ignored altogether. Attempting to make sense of the daily news is impossible. And even those that use it, use it as a volatility and momentum indicator. And not as a price direction indicator, as many commentary articles will have you believe. These articles have to make a big deal out of the daily news. But news itself is as good as useless for determining market direction. You cannot expect to develop the best forex trading strategy if you attempt to decipher the daily news. It just won’t work at all, so it’s best to by-pass the daily news. By using it as a simple volatility indicator and nothing more.

Best Forex Trading Strategy for Small Account Traders

Small account traders can implement trading strategies on the above tips. It is a good idea to have sufficient funds in their accounts and risk up to 25% or 30% of their balance in any active trading week. Risking less than that over any good trading week, will result in limited market exposure and low profitability. It’s best to use up to 30% in all active trading weeks. And just be more selective, and not trade at all during weeks where volatility doesn’t favor your strategy. Some strategies require high volatility, and some others require very low volatility. In all cases, a good CFD trading account can facilitate forex trading, allowing you to capture even minor market moves. And to even implement scalping trading. All these tips can make up the best forex trading strategy, for all beginners.