Skip to main content

Free Forex Strategies - A Basic Guide

Forex trading is a niche territory. It requires an understanding of the market trends, knowledge about investment laws and, above all, the ability to time entry and exit. While the market is not as complicated as it may sound, it certainly calls for sound trading decisions to make profits. Free forex strategies are some of the industry secrets which will help you to increase profit margins, while playing safe.

Free Forex Strategies To Get You Started

Here are some of the free forex strategies that have worked for several traders:

Purchasing on margin: Here, the trader suffers from significant amount of risk. However, it also opens the door to major profits. When purchasing on margins, the broker offers leverage to the trader. This allows the trader to invest more than the real worth of his account. Considering the risk factors involved here, the trader should have expertise in timing entry and exit to remain profitable.

Stop Loss Order: Here, the trader predefines the price level for the currency pair which is not expected to stay open. This strategy helps to trade profitably while limiting the possibility of losses.

Rely on Simple Moving Average: Also known as SMA, Simple Moving Average is the mean exchange value of a currency pair over a period of time. Considering SMA for any currency pair gives a rough idea of the buying and selling parameters. Most trading platforms generate SMA automatically to assist the traders with investing decisions.

Range trading: Although it is a time-taking procedure, analyzing historical levels helps to reduce risks to a great extent. Levels are the extreme values within which the currency pair has moved in a given period of time. Understanding levels reduces the risk, but also reduces the probability of significant profits. Levels are usually for those investors who want to play safe.

Managed account: This strategy is meant for those individuals who want to invest, and not trade, in the currency market. This arrangement works similar to the mutual fund industry. You invest money in the currency market and allow a professional trader to trade with your money. While it reduces the profit margin, your money can work well under the umbrella of an experienced trader.

Free forex strategies are not a sure-shot route to profits. They are highly useful to learn smart trading during the initial years. However, as traders gain experience, they tend to develop individual tricks that work for them. Following popular trading strategies is especially useful in volatile market situations.




Source by Kitz S

Popular posts from this blog

The Basics of Cryptocurrency and the Way It Works

In the times that we're living in, technology has made unbelievable advancement as compared to any time in the past. This evolution has redefined the life of man on almost every aspect. In fact, this evolution is an ongoing process and thus, human life on earth is improving constantly day in and day out. One of the latest inclusions in this aspect is cryptocurrencies.Cryptocurrency is nothing but digital currency, which has been designed to impose security and anonymity in online monetary transactions. It uses cryptographic encryption to both generate currency and verify transactions. The new coins are created by a process called mining, whereas the transactions are recorded in a public ledger, which is called the Transaction Block Chain.Little backtrackEvolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming legible information into a code, which is almost uncrackable. Thus, it becomes easier to track purchases an…

Forex MegaDroid - The Trading Robot That Applies Two Trading Strategies

It is important for novice traders to gain the basic knowledge of Forex trading at the very beginning of their attempts. After you get the rough ideas of what those charts, tables and axis mean, then you should study in details about which trading style suits you the most. Currency trading involves completely different styles. People should opt for their own strategies, but basically there are two primary types of analysis: the technical and the fundamental. A few traders would choose one of the two, some will combine them, others just follow what the robot tells them. Forex Megadroid belongs one of the few automated programs that applies both trading strategies. Forex traders who choose to use technical analysis always base their analyzes on the currency market trend. They read charts and recognize the common patterns for the price movement. Different traders may employ various reporting system to make the analysis easy to read or update. For the users of technical analys…

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen.The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins …