Free Forex Strategies: Where to Get Started?
Forex trading is a specialist job. It requires a good understanding of the market trends and Forex news. However, the timing of entry and exit plays a crucial role in determining your profit levels. With free Forex strategies, you can time your investments properly and ensure profitable trading.
Five Most Popular Free Forex Strategies
Here are some free Forex strategies that will assist you in improving your chances of trading profitably:
Buying on margins: When buying on margins, the broker allows a higher degree of leverage to the trader. Thus, the trader can invest an amount higher than the actual value of his live trading account. However, the trader faces high risks, as profits are highly dependent on trading entry and exit. Only an experienced trader can make good profits while buying on margins.
Historical levels: It refers to the maximum and minimum range in which the value of a currency pair has fluctuated during a given period in time. Analyzing the level gives a general idea of the possible values of the currency in the near future. Analyzing historical values is a time taking task, but it is the safest strategy for novice traders. There is a very low probability of a currency value deviating from the historical levels without any major news outbreak.
Loss order: With the stop loss order strategy, a trader determines the value of a currency pair in advance. This helps to minimize the risk of major losses and increases the possibility of trading profitably.
Managed accounts: This strategy is aimed at those individuals who want to invest in the currency market, rather than being interested in physical trading. Managed accounts work similar to the mutual funds arrangement. The individual invests money with a Forex trading company. Experienced traders with the company use investors' money for Forex trading. The profit generated or loss incurred is shared among the individual investors. Although managed accounts are not very profitable, they save investors' time and efforts required for trading profitably.
Simple Moving Average: Also known as SMA, it is the average exchange value for a specific pair of currency over a period of time. You can make investment decisions by relying on SMA values for any given currency. Investing in currencies that have stable SMA values is a safe way to trade Forex.
by Kitz S