Become a Profitable Trader with the Application of the Following 3 Simple Strategies
Forex traders who are just starting trading activities often feel confused with the right strategy to implement. They try various ways to implement the right strategy for the trading that is being carried out.
The next problem is that there are many beginner traders who think that the more complicated the strategy, the higher the level of accuracy of its success. Though the opinion is wrong and you can apply many easy and simple strategies to make a profit.
That means there is no relationship at all between a complicated strategy and the success of your trading.
On this occasion, we will try to explain to you all about 3 simple strategies that can be applied easily to make a profit.
Let’s look at the explanation below.
1. Long Term Trading Breakout
This strategy is one of the simple ways or tactics that beginners can do. This technique is done by performing a breakout action to form the highest level or the lowest level that is new.
Most traders do not take action during the breakout and tend to wait for pullbackconditions. What is not understood is that in a breakout condition accompanied by strong price movements, pullback is very rare.
When going to use a strategy like this, a trader must use a daily time frame that can describe the strength of the condition of price movements whether strong or not.
Implementing this strategy makes traders only need to use momentum with a level that is considered important by the market. The daily time frame will show momentum with an important level.
If you want to know the level of accuracy of price strength during breakoutconditions, you should wait for price movements to form a consolidation or sideways pattern.
2. 4th Week
The 4-week rule is a tactic introduced by Richard Davoud Donchian who is a forex trader from America. The trading tactic by using this strategy is to wait for the price to pass the highest price for the past 4 weeks to take the “Buy” position.Furthermore, waiting for the price to pass the lowest price for 4 weeks to take the “Sell” position.
3.Overbought and Oversold
If you are a trader who likes to trade in the short term, then we strongly recommend you to use this one strategy.
Before using this one tactic, there are important things you need to pay attention to. In an ongoing trend, prices cannot move in one time or a straight line.
Overbought and Oversold strategies are tactics that take advantage of price movements in an ongoing trend. The layman’s term for novice traders is to take advantage of the momentum when a price correction occurs.
How do you apply this one tactic?
The first step you need to do is determine the support and resistance levels. If you get support and resistance levels, then use the Stochastic Oscillator to strengthen the overbought and oversold signals.
The 3 strategies above include tactics that are very simple and easy to implement for beginners who are just starting trading activities. It is expected that with the 3 tactics above, you can get optimal profit even if you use a simple and easy method. The above strategy provides evidence that in order to get profit on forex trading, you do not need complicated and difficult tactics to do.
Using the right strategy or tactic is an important aspect to be applied so that you can successfully get a profit on the trading done. In addition to implementing simple and easy-to-understand tactics, you also need to consider other factors in order to succeed in making a profit.
Don’t forget to choose a broker or forex broker who is truly trustworthy and has high credibility. Do not let you trade with an arbitrary broker and intend to deceive you.
In addition, there are other internal factors that you should consider in trading success. This factor is the emotional and psychological maturity that you have. Do not take trading decisions in a hurry without considering important aspects and available economic news. Make sure every decision you take is based on careful and logical considerations.
Taking decisions in haste will make you suffer losses and will not be able to get consistent profits in forex trading. Therefore, in addition to implementing the right strategy, you also need to have a stable mental and emotional state.
Another important factor is making sure you have good capital management in trading on the forex market. Don’t let you lose a lot of capital before you get a stable profit.
We hope that the information and explanations we have presented above can provide many benefits and inspiration to beginner traders who are just starting out as forex traders. By applying the tactics and tips above, we hope you can get profit consistently.
If there are questions related to the topic above or there are other things that still make you confused. Please ask us through the comments column below, we will be happy to answer any questions that come in to help you all.
Good luck and hopefully you can get optimal profit!