Mastering Forex Trading Strategies: Essential for Beginners to Kickstart Your Journey

Forex Trading Strategies

We all know forex trading isn’t easy, right? It’s more like a complex formula for many beginners.

Being the largest (and most liquid financial market) trading market in the world, it is an attraction point for many trading lovers.

As per the statistics, $6.6 trillion worth of trading circulates daily in forex trading marketing. It is approximately 2x the amount than New York Stock Exchange.

Moreover, The biggest reason for a mass attraction is the rewarding currencies it offers. If you’re willing to take the risk, forex trading can be a fortune-making career.

However, as a beginner, there are many basic risk factors that can be reduced by winning strategies. The right strategy might land you profits worth a lifetime of savings.

In this post, we have shared some of the best beginner-friendly forex trading strategies for you.

Keep reading!

Forex trading strategy: Explanation

Before diving into the actual strategies, we should know what is a forex trading strategy.

Forex trading strategy can be described by a set of formulas for deciding when to enter a trade, management of your portfolio, and when to end a deal. The strategies can be variable depending on each trader.

Strategies developed using technical stats are more like to become easier and more successful. On the other hand, strategies developed using fundamental stats are most likely to become more complex.

Despite all of that, if you’re planning to enter into the trading realm, you must have a basic trading strategy. This will be helpful in terms of recording your growth.

Choosing the best Forex strategy

Choosing the best trading strategy is a difficult task not every trader can do! Most of the traders choose or better: learn by experimenting with each one with a demo account. You can consider it as an A/B testing round.

Well, we can’t blame them, because it’s a risk-free method. But, the sad news is: even if the traders develop a killer strategy by A/B testing. they can’t use it for long.

The financial market is evolving rapidly and you need to tweak or change your strategy every time to stay in the game.

For beginners, following a rather simple but effective strategy would be best the choice. Don’t use too advanced strategies in the beginning. It can result in devastating losses.

You don’t want that, right?

Just start with a basic strategy and as you see it making you profitable – stick to it and modify it eventually.

Here are 8 beginner-friendly forex trading strategies

  • 1. Price action trading
  • 2. Range trading
  • 3. Trend trading
  • 4. Position trading
  • 5. Day trading
  • 6. Scalping trading
  • 7. Breakout trading
  • 8. Grid trading 

Let’s dive deeper into these strategies!

1. Price Action strategy

This strategy is based on movements (decisions) as per the past price records of stocks according to the price change.

In short, this strategy is a method that solely analyses market stats and the decisions are subjective to recent or past trading history. No technical data is used for it.

Due to the negligence of fundamental research, this method needs technical research tools.


  • This strategy is famous for its quick results and many traders prefer it due to its simple approach.
  • Various tools and software are used for this strategy to work.
  • This strategy can vary according to subject and research respectively.

2. Range trading strategy

Range trading strategy can be identified as a range at which to purchase and sell over a brief period is the basis of the active investing method.

Example: For a stock that is currently trading at $35 and you predict it will increase to $40 before fluctuating between $35 and $40 over the course of many weeks, you may try to range trade it.

Repeat this method as often as necessary until you believe the stock will no longer trade in this range.


  • Some range trading strategies are volume trends, moving averages strategies and support and resistance strategy.

3. Trend trading strategy

A trending strategy can be defined as a trading strategy where your gains are sought by analysing the momentum of an asset in a given direction. A trend is when the price is trending uniformly upward or downward, for example.

Security is in a long position when a trend trader enters it. Greater swing heights define an uptrend. Similar to when an asset is heading upward, trend traders may decide to take a short position. The lower swing lows and higher swing highs indicate a decline.


  • As a bonus to this strategy. radars traders can use impressive tools such as trendlines, moving averages and technical indicators. This helps them to get seamless trading signals.

4. Position trading strategy

Positional trading can be classified as when a trader buys a security with the expectation that its value will rise in the long term. This type of trader is less distributed by short-term price fluctuations and the day’s news unless they alter the trader’s long-term perspective on the position meaning in the stock market.

The complete opposite of day traders would be position traders. They don’t trade much; the majority conduct less than 10 transactions yearly.


5. Day trading strategy

Day trading is a different kind of strategy. Day traders often don’t hold deals for just a few seconds. Their trading day, however, also focuses on a certain session or hour of the day when they attempt to take advantage of possibilities. Day traders frequently utilise charts from the M15 up to the H1 chart.

Day traders often take things a bit slow and look for two to three solid chances per day. Thus, their transaction history is limited.


  • Day trading strategy can be phenomenal for you if you prefer to end your positions before the market is closer.

6. Scalping trading strategy

Scalping is a short-term trading strategy in which traders execute deals quickly. Scalp traders only keep a position open for a short period of time. They believe in generating modest profits rather than waiting for a major trading chance to arise and prefer to trade quickly successions while an opportunity is present.

A trader that is scalping will place between ten and one hundred tiny deals in a single day. Finding out more about scalping will surely help you to determine if it’s your trading style or not.


  • It’s a normal conception among traders that scalping trading is simple but it’s not. It takes an enormous amount of discipline and research to actually become successful.

7. Breakout trading strategy

Breaking trading strategy is when a price manages to break out of its range, a breakout looks to enter a trade immediately. Strong momentum is what traders are searching for, and the real breakout is the signal to enter the position and benefit from the subsequent market action.

Traders can take positions in the market by setting bu–stop and sell-stop orders, which requires them to constantly watch price movement. Typically, they will set the stop just above the previous support level or below the last resistance level.


  • Traders can make use of traditional support/resistance levels to determine their exit goals.

8. Grid trading strategy

Grid trading is when a number of orders are placed above and below a particular price. Its goal is to capitalise on volatility by regularly placing buy and sell orders above and below the target price.

Your position and floating PNL increase if the prices go in one way. Of course, there is a chance that there may be an erroneous breakout or a swift turnaround.


  • The grid can be designed to capitalise on trends and price ranges.
  • Place purchase orders at intervals above the given prices and sell orders below the set price to capitalise on trends.

Final words

Forex trading provides newcomers with a wealth of chances, but success demands commitment, knowledge, and a methodical approach.

Beginners may put themselves on a path to becoming expert forex traders by grasping the fundamentals, using fundamental and technical research, and selecting the right trading techniques.

Keep in mind that the keys to long-term success in this volatile market are risk management, persistence, and continual learning.


1. Is forex trading appropriate for novices?

– Forex trading might be appropriate for novices, but doing so necessitates a firm grasp of the market and trading techniques. Before trading with real money, it is preferable to start with a demo account and gain experience.

2. How much money do I need to start trading forex?

– The capital requirements vary, although a lot of brokers provide accounts with minimal minimum deposits. It’s advised to apply appropriate risk management strategies and to begin with a sum you can afford to lose.

3. What is leverage, and it is appropriate for novices to utilise it?

– Using leverage enables traders to manage greater holding with less cash. While it can improve earnings, it also raises the possibility of losses. Beginners should utilise leverage sparingly and with caution.

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