Forex trading is trading in the global market. It requires special skills and knowledge in forex trading. A forex trader earns money via exchange of currencies. The major exchange currencies in forex trading are USD/EUR, USD/CHF, USD/JPY, USD/GBP.
Since forex is a global trading market you need to design a simple and profitable forex trading strategies to earn the profit, to grow your wealth and to become a successful forex trader.
Forex trading strategy helps you to make a wise and calculated decision in making a trade. Remember you earn the big profit in the forex trading but you can also lose many bucks. There are more numbers of failed forex traders than successful forex traders.
Below are the most important and simple forex trading strategies to grow your wealth in 2019.
Clear Your Basic of Forex Trading First
Forex trading is not that complex to understand but to master any financial market you have to clear the basics and fundamentals of the market. Learn everything you can learn about forex trading. Aware yourself with the terms of forex trading, for example, Pip, leverage, currency pair, bid and ask price, spread, forex signal etc. Basic knowledge of forex terminology is important.
Continuous Education is The Must
Don’t stop with the basics. Forex market is the most dynamic and liquid market. It is also a global market, therefore, it is affected by major global events as well. The relationship between countries can change the value of the exchange rate between currencies and consequently your profit. Hence keep yourself updated with the news and global events.
Take Small Steps
As big the forex trading market the smart steps in this are small. If you are a beginner you should start with small steps. Choose the currency pair which you understand completely, how it moves what affect the exchange rate in the currency pair, learn everything about the currency before making a trade. There are also lots in forex trading, standard, mini, micro according to the number of units you want to trade. A standard lot has 1,00,000 unit, Mini Lot has 1,000 unit Micro Lot has 1,000 unit. There is also a nano lot which is 100 unit but it is rarely offered. You can start forex trading with micro or a mini lot. But you should always be aware of risk management and risk tolerance in the trading.
Leverage in forex trading helps you to control a large amount of money with small capital. Typically you borrow from your broker(If he is providing the service) to use leverage. Leverage comes in many amounts. 50:1, 100:1, 200:1, 400:1. That means if you consider 50:1 leverage you will be controlling $50 dollar with $1 amount in your account. Most of the expert forex trader use small leverage ae 10:1 or 33:1. It is always preferable to use small leverage as it minimizes the risk of losing money and making mistakes. Do not forget that leverage can bring profit as well as loss, therefore, use it very carefully.
Understand the Charts
In forex trading, chart plays a very important role. In the chart, the complex price movement calculation is simplified in visual form. The price movement of the currency exchange rate is displayed in the various pattern. There are basically three charts in forex trading, Line chart, Bar chart, and Candlestick chart. In these charts, you get to see open, close High and Low of the price movement on daily basis. Therefore it easy to read to chart then do manual research to find the price movement.
Apart from these forex trading strategies, you will need to do research and analysis in the forex market. Use expert guidance before indulging in the path of forex trading. Use forex signal to make a trade. There are many forex signal provider online. You can use the free forex signal at the beginning of the trading.