We want to help you get started. On this page we will provide you with a quick and easy online trading example, for your convenience. Before we do though, we have to introduce a few of basic terms:. It enables you to open large deals with a relatively small investment. How large? Up to times your initial investment. Please remember that while leverage allows you to maximize your trading power, it needs to be used carefully, because it also increases risk to your investment.

You invest in the price of an instrument in the form of CFDs Contract for Difference. When you invest in oil, a single CFD means one barrel of oil. When you invest in a share, a single CFD is one share, etc.

Completing a CFD deal with iFOREX is quick, simple and only takes four steps. We hope this example helped you understand how online trading works. If you need additional information, simply contact us and we will be happy to assist.

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Excellent upside potential. We expect this pair to break out along with many other AUD pairs based on AUD weakness in the next 1 - 2 days. No strong news drivers on the calendar in the upcoming main session. Today in forex trading the JPY was weak and the AUD was strong, causing many pairs to move in the opposite direction of the trend.

These movements were against the trend. They might continue up one more day but the exact targets are hard to see on the charts. We would scale out lots or exit any buys. Lots of potential on this pair if a sell signal is in place below here.

Market Notes - The market is now trending or strong trending across a large number of pairs. Volatility and price movement should continue. News drivers for the upcoming main session from the GBP and CAD can be found on the news calendars. Today in forex trading the CHF was strong. The EUR was strong today also. This pair has broken resistance and the strong uptrend is now in place with substantial upside. This pair has not broken out of the market ranges, so we would exit this trade.

The JPY was strong today. Many other pairs had strong movements today, volatility at highest levels in several months. Market is now trending on a large number of pairs. News drivers pending in the next hour from the AUD, check the news calendars.

Today in forex trading the market was quiet on almost all of the currencies. Sometimes the market stalls ahead of the FOMC news driver which is later today. Then normal volatility resumes after the news is factored in. News drivers are later today from the USD, FOMC meeting minutes, see the news calendar.

Market Notes - the JPY looks strong, but we could not locate any nearby support breakout points. The overall market has good volatility now but many pairs are still in ranges. Today in forex trading the CAD was weak. This pair is at or close to resistance on the H4 and D1 time frames, so we would scale out lots or exit any buys.

This pair is close to support on the D1 and H4 time frames, so once again we would scale out lots or exit any sells. Movements were good on these pairs but they are inside of ranges.

Many pairs are rangebound at the moment. The upcoming AUD news drivers should cause movement on the AUD and NZD pairs but we cannot see trends to support this as of now. Wait for the main session or after AUD news drivers to consider new trades, and confine new entries to strong heatmap signals only. News drivers for the upcoming main session from the AUD and USD can be found on the news calendars.

AUD news later in the Asian session also from the AUD. OPEC meetings continue tomorrow. Today after the NFP news driver we did not see any strong signals for trade entries. The charts were bouncing around on a lot of pairs. No trend based movements or breakouts today. Please consider these trends and possible trades for after the NFP news driver. Other Pairs - We suspect that other pairs might be breaking out of their ranges, look for strong signals on other groups of pairs other than the USDs after NFP.

Today in forex trading the JPY was mostly weak. This pair and most of the other JPY pairs are inside of H4 ranges, so we would exit any buys.

This article will look at top Forex trading strategies for beginners by introducing some simple Forex trading strategies. We will guide you through three key Forex trading strategies for beginners to use today, namely - the Breakout strategy, the Moving Average Crossover strategy, and the Carry Trade strategy.

The Forex market Foreign Exchange Market or FX is hugely liquid, with a vast number of participants. It is also a well-established market. As you might expect, the combination of popularity and time has resulted in professional FX traders devising countless trading strategies. As a day trading beginner who might simply be searching for beginner's trading guides on how to learn to trade Forex, or even an intermediate FX trader seeking some useful trading strategy guides to improve their knowledge and skills, the sheer volume of trading techniques available can be daunting and confusing.

Some day trading strategies are very complicated, with a steep learning curve. So Forex beginners may find it better to start with a simple and easy Forex strategy. After all, the simpler the strategy, the easier it is to understand the underlying concepts. There will be plenty of time to add complex actions after you have mastered the basics. Regardless of whether you adopt a simple or complex strategy, remember that your overarching mantra should always be to use what works.

New traders are generally unable to devote large amounts of time to monitoring developments. For these newcomers to Forex, simple strategies offer an effective but low-maintenance approach. The first two strategies we will show you are fairly similar because they attempt to follow trends. The third strategy attempts to profit from interest rate differentials, rather than market direction.

To put it simply, a trend is a tendency for a market to continue moving in a given overall direction. A trend-following system attempts to produce buy and sell signals that align with the formation of new trends. There are many methods designed to identify when a trend starts and ends. Many of the simple Forex trading strategies that work have similar methods. In fact, some traders have produced outstanding track records using such systems.

This means that the strategy tends to generate numerous losing trades. The theory is that these losses will be offset by more infrequent but larger winning trades.

That is a hard pill to swallow in practice. Also, once the trend breaks down, you tend to give back a healthy amount of your profit.

You may have heard the phrase, "the trend is your friend", but you may not be so familiar with the full expression, which adds "until the end". The end comes when the trend fails, and this can be very trying on a trader's psychology. One big issue with a trend-following system is that you need deep pockets to properly use it. This is because possession of a large amount of capital reduces your chances of going bust during an extended drawdown.

So trend following is useful as a Forex strategy for beginners to understand, but it may not be ideal for less wealthy individuals. To learn more simple forex trading strategies for beginners, register for the FREE Forex course to sharpen your skills!

Our first strategy attempts to identify when a trend might be forming. It looks for price breakouts. Markets sometimes range between bands of support and resistance.

This is known as consolidation. A breakout is when the market moves beyond the boundaries of its consolidation, to new highs or lows. When a new trend occurs, a breakout must occur first.

Breakouts are, therefore, seen as potential signals that a new trend has begun. But the trouble is, not all breakouts result in new trends. In Forex, even such simple strategies must be used with risk management. By doing so, you seek to minimise your losses during the trend break-down. A new high indicates the possibility that an upward trend is beginning, and a new low indicates that a downward trend is beginning.

The length of the period can help determine the highest high or the lowest low. A breakout beyond the highest high or the lowest low for a longer period suggests a longer trend. A breakout for a short period suggests a short-term trend. In other words, you can tune a breakout strategy to react more quickly or more slowly to the formation of a trend. Reacting quicker allows you to ride a trend earlier in the curve, but may result in following more shorter-term trends.

The buy signal is when the price breaks out above the day high, and the sell signal is when the price breaks out below the day low. This is very simple, but there is still a major drawback. Namely, new highs may not result in a new uptrend, and new lows may not result in a new downtrend. So we are going to experience our fair share of false signals. Using a stop-loss can help to alleviate this problem.

To keep things really simple, here's an extremely basic rule for exiting trades: We are going to take a time-based approach. You simply close your position after a certain number of days have elapsed. This time-based exit side-steps the issue of things becoming tricky when the trend begins to break down.

Once you enter a trade, hold it for 80 days and then exit. Remember, this is a long-term strategy. If you find these parameters do not yield enough frequent signals, they can be adjusted to whatever suits you best. For example, you can try using hours instead of days for a shorter strategy. Backtesting your results will give you a feel for the effectiveness of your choices.

The MetaTrader Supreme Edition offers backtesting, along with a large selection of other useful tools such as automated technical analysis trading ideas and additional indicators such as a correlation matrix and sentiment indicator. Our second Forex strategy for beginners uses a simple moving average SMA. SMA is a lagging indicator that uses older price data than most strategies, and moves more slowly than the current market price. The longer the period over which the SMA is averaged, the slower it moves.

Often, we use a longer SMA in conjunction with a shorter SMA. For this simple Forex strategy, we are going to use a day moving average as our shorter SMA, and a day moving average for the longer one.

In the chart above, the period moving average is the dotted red line. You can see that it follows the actual price quite closely. The period moving average is the dotted green line. Notice how it smooths out the price movement? When the shorter, faster SMA crosses the longer one, it indicates a change in the trend. When the short SMA moves above the longer SMA, it means newer prices are higher than older ones.

This suggests a bullish trend, and this is our buy signal. When the short SMA moves below the longer SMA it suggests a bearish trend, and this is our sell signal.

Rather than solely being used to generate trading signals, moving averages are often used as confirmations of overall trends. This means that we can combine these two strategies by using the confirmatory aspect of our SMA to make our breakout signals more effective. With this combined strategy, we discard breakout signals that don't match the overall trend indicated by our moving averages. Here's an example: If we get a buy signal from our breakout, we should look to see if the short SMA is above the long SMA.

If it is, we should place our trade. Otherwise, perhaps it's better to wait. Our final strategy is essential to know. It's a type of trade that is widely used by professionals too, so it is not purely a beginner Forex strategy.

Best of all, it is easy to implement and understand. The essence of the carry trade is to profit from the difference in yield between two currencies. To understand the principles involved, let's first consider someone who physically converts currency.

Imagine a trader borrows a sum of Japanese Yen. Because the benchmark Japanese interest rate is extremely low effectively zero at the time of writing , the cost of holding this debt is negligible. The trader then exchanges the yen into Canadian dollars and invests the proceeds into a government bond , which yields 0.

The interest received on the bond should exceed the cost of financing the Yen debt. Obviously, currency risk is baked into the trade. If the Yen appreciated enough against the Canadian dollar, the trader would end up losing money. The same principles apply when trading FX, but you have the convenience of it all being in one trade. If you buy a currency pair where the first-named ''base currency'' has a sufficiently high-interest rate, in relation to the second-named ''quote currency'', then your account will receive funds from the positive swap rate.

The amount yielded is correlated to the amount of currency commanded, so leverage is an aid if the strategy pays off. As noted earlier though, there is an inherent risk that you could end up on the wrong side of a move in the currency pair.

It is therefore important to carefully select the right currencies. Inertia is your friend with this strategy, and ideally, you are looking for a low-volatility FX pair. It's also important to note that leverage will end up magnifying losses if you get it wrong. The Japanese Yen has long been popular as the funding currency, because Japanese rates have been low for so long, and the currency is perceived as stable.

The strategy works well at a time of buoyant risk appetite because people tend to seek out higher-yielding assets.

So on the account history, we see the closed trades. For example, if the market is choppy or mostly trending. This is known as consolidation. And I will need to enter the account number. With this combined strategy, we discard breakout signals that don't match the overall trend indicated by our moving averages. Momentum trading and Forex momentum indicators are based on the idea that strong chart price movements in a particular direction are a very good sign that a price trend will continue in that exact direction for some time.

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