Before you open your first trade, decide on a Forex trading strategy.

There are many Forex trading strategies that will help you stay consistent and minimize emotional biases that influence your decisions.

An effective Forex trading approach for beginners involves a combination of technical and fundamental analysis to support each trading decision. Below is a list of some common strategies.

Scalping

Scalping is a trading strategy that aims to make small profits from a few trades that are usually opened and closed within a very short period of time, such as hours and minutes. This strategy is often used by traders who can open and close Forex trades within seconds using special computer algorithms. They profit from minimal price movements of currency pairs (pips).

Day Trading

Day traders use technical analysis tools to identify price trends. They open and close their trades on the same day. Unlike scalpers, who often execute trades within minutes, day traders can keep their positions open throughout the day.

By closing their trades before the end of the day, day traders avoid overnight fees and the risk of fundamental events that could unexpectedly affect the price.

Swing Trading

Swing traders keep their trades open for days or weeks to gauge the direction of price movements. They use technical analysis to identify likely turning points in the value of a currency pair and, accordingly, open long or short positions.

Position Trading

This is a long-term strategy that focuses on price trends and fundamental analysis. Position trading involves a long-term buy and hold strategy that involves profiting from a change in the price of an asset over a period of time. This period of time can last for months or even years.

Trend Trading

The trend trading strategy can be used in long-term, medium-term and short-term trades. It involves technical analysis of the historical price movement of an asset to determine its future trends. Traders use various chart tools to determine the opening and closing points of positions.

Follow a few simple steps to get started:

1. Create and log into your trading account.

2. Select the currency pair you want to trade.

3. Use a trading strategy that suits you to identify buying and selling opportunities.

4. Open your first trade and consider using risk management tools (e.g. stop loss).

5. Monitor your trade using technical and fundamental analysis based on your trading strategy.

6. Close the trade in accordance with your trading strategy.  

We wish you successful trading with ArtCap !