Day trading - These are trades that are exited before the end of the day. This removes the chance of being adversely affected by large moves overnight. Day trading strategies are common among Forex trading strategies for beginners. Trades may last only a few hours, and price bars on charts might typically be set to one or two hours. Swing trading - Positions held for several days, whereby traders are aiming to profit from short-term price patterns.

A swing trader might typically look at bars every half an hour or hour. Positional trading - Long-term trend following, seeking to maximise profit from major shifts in price. A long-term trader would typically look at the end of day charts. The best positional trading strategies require immense patience and discipline on the part of traders. It requires a good amount of knowledge regarding market fundamentals. Below is a list of trading strategies regarded to be some of the top Forex trading strategies around and how you can trade them, so you can try and find the right one for you.

Did you know that you can learn to trade step-by-step with our brand new educational course, Forex , featuring key insights from professional industry experts? Click the banner below to register for FREE! One of the latest Forex trading strategies to be used is the pips a day Forex strategy which leverages the early market move of certain highly liquid currency pairs. The GBPUSD and EURUSD currency pairs are some of the best currencies to trade using this particular strategy.

After the 7am GMT candlestick closes, traders place two positions or two opposite pending orders. When one of them gets activated by price movements, the other position is automatically cancelled.

The profit target is set at 50 pips, and the stop-loss order is placed anywhere between 5 and 10 pips above or below the 7am GMT candlestick, after its formation. This is implemented to manage risk. After these conditions are set, it is now up to the market to do the rest.

Day trading and scalping are both short-term Forex trading strategies. However, remember that shorter-term implies greater risk due to the nature of more trades taken, so it is essential to ensure effective risk management. Below is a screenshot of the MetaTrader 4 trading platform provided by Admirals, showing the EURUSD H1 chart from the Zero.

MT4 account:. Source: Admirals MetaTrader 4, EURUSD, H1 chart between 26 May to 31 May Accessed: 27 April at am BST - Please note: Past performance is not a reliable indicator of future results or future performance.

The orange boxes show the 7am bar. In some instances, the next bar did not trade beyond the high or low of the previous bar resulting in no trading setup unless the trader left their orders in the market.

The effectiveness of the 50 pips a day Forex strategy has not been tested over time and merely serves as a platform of ideas for you to build upon. Past performance is not a reliable indicator of future results. The best Forex traders swear by daily charts over more short-term strategies. Compared to the Forex 1-hour trading strategy, or even those with lower time-frames, there is less market noise involved with a Forex daily chart strategy. Such Forex trade setups could give you over pips a day due to their longer timeframe, which has the potential to result in some of the best Forex trade setups and potentially some of the most successful trading strategies around.

Daily Forex strategy signals can be more reliable than lower timeframes, and the potential for profit could also be greater, although there are no guarantees in trading. Traders also don't need to be concerned about daily news and random price fluctuations. The Forex daily strategy is based on three main principles:. While there are plenty of trading strategy guides available for professional FX traders, the best Forex strategy for consistent profits and creating the most successful trading strategies can only be achieved through extensive practice.

Let's continue the list of trading strategies and look at another one of the best trading strategies. You can take advantage of the minute time frame in this Forex strategy. In regards to the Forex trading strategies resources used for this type of strategy, the MACD is the most suitable which is available on both MetaTrader 4 and MetaTrader 5. You can enter a long position when the MACD histogram goes above the zero line.

The stop loss could be placed at a recent swing low. You can enter a short position when the MACD histogram goes below the zero line. The stop loss could be placed at a recent swing high. Below is an hourly chart of the AUDUSD.

The red lines represent scenarios where the MACD histogram has gone above and below the zero line:. Source: Admirals MetaTrader 4, AUDUSD, H1 chart between 20 May to 31 May While many Forex traders prefer intraday Forex trading systems due to the market volatility providing more opportunities in narrower time frames, a Forex weekly trading strategy can provide more flexibility and stability. A weekly candlestick provides extensive market information. Weekly Forex trading strategies are based on lower position sizes and avoiding excessive risks.

For this strategy, traders can use the most commonly used price action trading patterns such as engulfing candles, haramis and hammers. One of the most commonly used patterns in Forex trading is the hammer which looks like the image below:. The chart below shows the weekly price action of NZDUSD and examples of the patterns shown above. Source: Admirals MetaTrader 4, NZDUSD, Weekly chart between 19 August to 31 May Accessed: 27 April at pm BST - Please note: Past performance is not a reliable indicator of future results or future performance.

To what extent fundamentals are used varies from trader to trader. At the same time, the best Forex strategy will invariably use price action. This is also known as technical analysis. When it comes to technical currency trading strategies, there are two main styles: trend following and countertrend trading. Both of these FX trading strategies try to profit by recognising and exploiting price patterns. When it comes to price patterns, the most important concepts include support and resistance.

Put simply, these terms represent the tendency of a market to bounce back from previous lows and highs. This occurs because market participants tend to judge subsequent prices against recent highs and lows. Therefore, recent highs and lows are the yardsticks by which current prices are evaluated. There is also a self-fulfilling aspect to support and resistance levels.

This happens because market participants anticipate certain price action at these points and act accordingly. As a result, their actions can contribute to the market behaving as they had expected.

Did you know that you can see live technical and fundamental analysis in the Admirals Trading Spotlight webinar? In these FREE live sessions, taken three times a week, professional traders will show you a wide variety of technical and fundamental analysis trading techniques you can use to identify common chart patterns and trading opportunities in a variety of different markets. Sometimes a market breaks out of a range, moving below the support or above the resistance to start a trend.

How does this happen? When support breaks down and a market moves to new lows, buyers begin to hold off. As the name suggests, moving averages provide an overview of the average price of a forex pair over a specific timeframe. The most utilized timeframes are the day and day moving averages. The form shows us the average price of a currency pair of the past 50 days and the latter at days.

This would indicate that the forex pair is about to enter a bullish market. So now that we have covered the best technical indicators to use when day trading forex — we can now dive into strategies. Irrespective of whether you are a complete novice or a seasoned forex trader — demo accounts are one of the best tools you can have by your side. This is because you can day trade forex in real-time market conditions without needing to risk any money. Instead, your chosen forex broker will give you an allocation of paper trading funds.

This allows you to test out your day trading skills in a truly risk-free environment. Then, once you are confident that your strategies have the potential to make you consistent profits, you can then switch over to a real money account. Even if you are an experienced forex trader, demo accounts are superb for backtesting new systems.

The next day trading forex strategy to consider as a newbie is that of bankroll management. In fact, this will ensure that you keep your trading stakes sensible and thus — avoid burning through your brokerage account balance. This strategy will first require you to select a maximum stake percentage. After all, even the most profitable forex day traders will go through losing periods — so bankroll management ensures that you protect your previous gains.

This will ensure that you never lose too much money on an unsuccessful trade. The most effective way of doing this is to place a stop-loss order on each and every position that you place. For those unaware, a stop-loss order instructors your chosen forex broker to automatically close a position when it goes down by a certain amount.

This trading tool is offered by top-rated broker eToro and it allows you to day trade currencies passively. This is because you will copy the positions of successful forex traders of day trading like-for-like. Your stakes will be at a proportionate amount — as per what you invested into the trader.

When utilizing the Copy Trading tool at eToro, you will have thousands of potential investors and the best forex traders to follow in choosing from. The platform makes the research profile simple, as you can search for a trader based on your preferred metrics. Another great strategy to consider as an inexperienced forex day trader is to avoid minors and exotics and instead focus on major pairs. These are forex pairs that always consist of a strong currency that is traded against the US dollar.

All of the aforementioned pairs have a number of core characteristics that are highly suited for newbie traders. For instance, majors attract the most liquidity, which in turn, means that spreads will be much lower than other pair types. In fact, many ECN brokers in the online space allow you to trade major forex pairs at a spread of 0. Even more importantly for beginner day traders, major forex pairs are home to super-low volatility levels.

This means that you will avoid larger pricing swings — which ultimately, can be a major headache for traders that are new to the forex arena. Unlike the traditional stock markets, the forex trading industry is accessible 24 hours per day, 7 days per week. However, if you attempt to buy and sell currencies over the weekend, you will find that trading volumes are much lower.

This has the undesired result of paying higher spreads. Plus, as trading volumes are modest over the weekend, pricing gaps is a regular occurrence.

This means that there will often be wilder pricing spikes, so you might need to close a trade at a less favourable level. With this in mind, the best time to trade forex is during standard market hours — which runs from 5 p. EST on Sunday — through to 4 p. EST on Friday.. This takes into account the global nature of the forex trading arena, with the Asian markets opening proceedings and the week closing in the US.

Relatively new to forex day trading and still not sure whether this investment scene is right for you? If so, below we cover the main benefits of day trading forex from the comfort of your home.

As a retail client — which means that you do not come from a professional trading environment, entering the forex industry as a newbie has never been easier. The best forex brokers in this space also allow you to start trading with a small amount of capital. Ultimately, in the time it will take you to read this guide in full — you could have placed your first forex trade! Unlike other investment sectors, fees in the forex trading scene are super low.

Crucially, the best brokers in this space often allow you to buy and sell currencies on a spread-only basis — meaning that you will not be required to pay any trading commissions. Furthermore, the spread itself on major currency pairs has never been more attractive — even for casual traders. For example, the best platforms in this space offer commission-free trading at a spread of less than 1 pip.

Alternatively, you might even consider opening an ECN account, which offers 0 pip trading alongside a small flat commission. Either way, entering and exiting a forex trade is something that can be done in a low-cost environment.

When you invest in a traditional asset like stocks or mutual funds — you are riding all of your hopes on the markets increasing in value. This is unconducive for short-term day traders, as the only way you can make money is if the price movement of the asset rises. However, in the case of the forex arena, you can profit from both rising and falling markets.

This is because you have the option of placing a buy order if you think the exchange rate of the pair will rise. Or, you can place a sell order if you think the opposite will happen. The best online brokers allow you to trade assets with leverage — meaning you can increase the value of your stake.

With that said, regulated brokers are capped in how much leverage they can offer retail clients. The good news is that major forex pairs attract much higher limits than other asset classes.

In particular, this is ideal for entry-level forex traders that only have access to a limited amount of capital. Forex is one of the most regulated sectors of the financial markets.

After all, not only do big banks and financial institutions trade currencies — but casual retail clients too. As such, national regulators keep brokers in check to ensure that inexperienced traders are well protected.

For example, eToro is regulated by three major authorities — namely, ASIC, CySEC, and the FCA. This means that the forex broker is required to keep client money protected in segregated bank accounts and keep crime away from the platform via KYC Know Your Customer processes.

Ultimately, by trading currencies at a regulated brokerage site — you can be sure that you are doing so in a safe and secure environment. Plus, as a retail client, you will benefit from negative balance protection.

This means that losing trades that have been leveraged can not result in you owing the broker any money. One of the best forex day trading systems to consider as a newbie is to sign up for a signal service. For those unaware, forex signals are offered by seasoned currency traders that perform technical and fundamental analysis throughout the day.

When the trader has identified a trading opportunity, it will instantly send a signal to its member base. You will also be provided with exit positions through a suggested stop-loss and take-profit price.

This allows you to day trade forex without needing to perform any analysis yourself and thus — it ideal for newbies. If this is something that interests you, one of the best providers that we have come across is Learn2Trade.

This is because - and much like eToro, you will not be charged any trading commissions when you enter and exit a position. There is no ongoing platform fee either and deposits and withdrawals are free when using ACH.

This also gets you access to higher instant deposits. This comprehensive guide on the best day trading strategies will conclude by showing you how to get started today. In fact, by following the simple step-by-step walkthrough below - you will be day trading at commission-free broker eToro in less than 10 minutes!

Opening a day trading account at eToro takes no more than 5 minutes. Simply visit the eToro website, click 'Join Now', and follow the on-screen instructions.

You also need to upload a copy of your government-issued ID - as per KYC laws. Now it's time to make a deposit. If you want your payment process instantly - choose from one of the following deposit types:.

With that said, eToro also offers instant bank deposits - but this will depend on where you live. Not sure which financial instrument you wish to day trade? If so, click on the 'Trade Markets' button and browse the many assets that eToro supports.

Or, if you know which market you want to speculate on - search for it. As you can see from the image above, we are searching for Disney stocks. You now need to deploy your chosen day trading strategy by setting up an order. If you need a refresh on how day trading orders work - scroll back up to Strategy 3. Once you have set up your limit, stop-loss, and take-profit orders - you need to enter your stake in the 'Amount' box.

In conclusion, this guide has discussed 10 of the very best day trading strategies that work. We have also discussed the importance of choosing a good day trading platform - especially when it comes to low commissions and tight spreads.

Additionally, you'll also want to ensure that the broker offers a top-rated day trading simulator. If you're looking to deploy some of the best day trading strategies discussed today - eToro is a great option. It takes just minutes to set up an account, you'll have access to thousands of markets, and you won't pay a cent in trading commissions.

Most importantly - your funds are safe at eToro - as the broker is heavily regulated. Perhaps the best day trading strategies that work are to start off with a demo account facility - meaning you can trade in a risk-free manner. Additionally, you should also consider learning the art of technical analysis.

This will ensure that you are trading markets with high liquidity levels and thus - tighter spreads. Additionally, one of the best crypto day trading strategies to also consider is to avoid applying leverage. If you're looking for the best forex trading strategies, consider learning technical analysis. Although this will take many months to master - this will give you the best chance possible of outperforming the market.

Other popular forex day trading strategies to consider is signing up for a signal service, or deploying an automated robot. If you are a complete newbie and have no understanding of technical analysis - the best day trading strategy could be the eToro Copy Trading tool.

This is the best day trading strategy for beginners because you don't need to do any analysis or research. Instead, you simply need to copy an experienced trader and all ongoing positions will be mirrored in your eToro account - like-for-like! We found that one of the best day trading strategy ideas for newbies is to enter positions when an important news story breaks.

This is known as fundamental analysis - and it will see you deploy a buy or sell order depending on whether the news was positive or negative. We found that he best day trading platform is eToro - as the broker is heavily regulated, offers thousands of financial markets, and it doesn't charge any commissions.

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner.

Kane has also written for websites such as MoneyCheck , InsideBitcoins , Blockonomi , Learnbonds , Buyshares and the Malta Association of Compliance Officers. Home » day trading » strategies. Kane Pepi Pro Investor. Updated: 23 October Test Your Trading Strategy Now. My Trade Size. More Filters.

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The best forex trading strategies ensure that you find the perfect balance between risk management and upside potential. The strategies that we are going to discuss in this guide can be used by forex traders and scalpers of all shapes and sizes — especially those with little to no experience of the currency scene. The best forex trading strategy for those that are just starting out in the world of currency speculation, is to ensure you have a firm grasp of the basics.

Although there is much to learn about online forex trading — we would argue that there are three core pillars to understand fully. This includes pairs, pips, and orders. Forex markets are traded in pairs — which will contain two competing currencies. The specific currencies within each pair will determine the market category — which includes majors, minors, and exotics. Alternatively, you also have minor pairs — which contain two strong currencies but never the US dollars.

The final pair category — which is best avoided as a beginner, is exotics. These pairs will contain a currency from a non-major economic region — such as South Africa, Peru, Kenya, and Turkey.

Naturally, the spreads and volatility levels on exotic pairs can be huge — so stick with majors. Understanding how percentage in points work — or PIPs, is also a crucial strategy. In a nutshell, when the exchange rate of a currency pairs suffer fluctuations the market moves up and down — this is calculated in pips. Other than pairs containing the Japanese yen, most user-friendly forex trading platforms will display five digitals after the decimal.

The number of pips that the pair moves by will ultimately determine how much you make or lose. This ensures that you have a clear entry and exit strategy on your forex trade. Ultimately, ensuring that you understand the ins and outs of limit, stop-loss, and take-profit orders is one of the best forex trading strategies that you can learn as a beginner. However, we would strongly suggest that you start off with a day trading simulator.

These are essentially demo accounts offered by online brokers and they allow you to trade in live currency market conditions without risking any money. We would suggest considering eToro for this — as the regulated broker offers the following:. Once you have spent a reasonable amount of time practicing on a forex demo account and you feel ready to start trading with real money — make sure you create a bankroll management plan. In its most basic form, this will ensure that you never risk more than a certain amount on each trade.

This should be stipulated in percentage terms and multiplied by your current brokerage account balance. It is important to note that a bankroll management plan not only increases your stake.

On the contrary, if you are going through an extended losing period of time — your maximum stake size will go down. Crucially, this ensures that you never burn your account balance in its entirety — which is why bankroll management is one of the best forex trading strategies for beginners.

You might be under the impression that most currency speculators are day traders — meaning that they open and close positions within a few hours or even minutes. However, some of the most successful currency traders actually prefer to take a swing trading strategy.

The overarching reason for this is that you are not pressured into closing a position before the end of the day. On the contrary, forex swing trading offers much more flexibility — so you can keep positions open for hours, days, or even weeks. This is much more conducive for beginners — as you can take your time researching the markets and thus — you can avoid having to make quick and instant decisions.

In terms of forex swing trading strategies , a good starting point is to focus exclusively on financial news. Instead, you will be entering and exiting trades based on real-world events. GDP levels , geopolitical events, and more. Another idea that you might consider in your search for the best forex swing trading strategies is to identity a prolonged trending. The best forex trading strategy for those without any knowledge of technical or fundamental analysis is to consider an automated system.

By this, we mean trading in a fully autonomous manner — relying on a piece of pre-programmed software of a Copy Trading platform. Regarding the software option, this will come in the form of a forex EA expert advisor — which is essentially a trading robot. You will purchase the robot from a third party, and then install it into MT4. Once activated, the robot or forex EA will start trading on your behalf.

However, this form of automated trading is fraught with risk, as you never know what you are getting with a robot. For example, the robot provider might claim that the underlying software is able to outperform the market consistently. But, in reality, it could end up blowing through your account balance on the first day. Instead, Copy Trading via a regulated online broker is a much better option. Ultimately, once you select a top-rated Copy Trading pro — you can sit back and invest in a passive nature.

At some point in your currency trading career, you will need to understand the art of technical analysis. After all, the best forex trading strategy employed by seasoned investors is to read and interpret pricing charts. The only way to do this is to learn about the many different technical indicators in the market. These indicators will look to analyze the historical pricing data of a forex pair and will look for a specific trend.

For example, the technical indicator will look to evaluate whether a forex pair is overbought or oversold, or perhaps whether a particular support or resistance level is about to broken. Either way, there are dozens of technical indicators that are popular with seasoned forex traders — so consider taking a course so you can incorporate this into your short-term trading strategy.

Note : Some of the best indicators to start with include the moving average, support and resistance levels, trend trading lines, and downtrend and uptrend price movements. Often overlooked by newbies, one of the best forex trading strategies is to ensure your chosen broker offers super-low fees.

After all, if your broker charges high commissions or wide spreads — many of the best forex day trading strategies discussed today will not be possible. The two main fees that you need to look out for when choosing a forex broker is the spread and commission.

The spread is simply the difference between the buy and sell price of a forex pair. We explained how pips worked earlier — so should be able to calculate the spread with ease. The number of pips that the spread is quoting will tell you how much you need to make in a position to cover your costs.

In this example, this means that your position needs to grow by 2 pips just to break even. If it increases by 3 pips, your net profit is 1 pip when factoring in the spread.

In addition to tight spreads your chosen forex broker should also offer low commissions. In fact, the best forex brokers in the online space will charge you no commissions at all.

This includes the likes of eToro and AvaTrade, which we discuss in more detail shortly. In other cases, your chosen broker might charge commission in percentage terms. For example, if you are being quoted 0. When you close the trade, you will again pay a commission of 0. The section above explained that one of the best forex trading strategies for beginners is to choose a low spread and zero commission broker.

However, when choosing a broker, you need to look at a variety of other factors. For example, is the broker regulated, does it offer transparent trading conditions, and what currency pairs are supported. To ensure you are able to deploy the best forex trading strategies in the most effective way possible — below you will find a small selection of brokers that are worth considering.

This regulated forex broker offers dozens of major, minor, and exotic pairs — all of which come with tight spreads. Before you start trading with real money, you might consider the demo account offered by eToro.

eToro also offers the Copy Trading tool that we discussed earlier. This means that you can trade forex passively — as your chosen currency trader will buy and sell on your behalf. eToro is really simple to use, too — making it perfect for newbies. In terms of safety, eToro is regulated by the FCA, ASIC, and CySEC.

Next up is Libertex - a hugely popular forex and CFD trading platform that allows you to enter and exit the market without paying any spreads. Instead, you will pay a super-small commission per slide. This pricing structure operates like a conventional ECN broker account - which is especially ideal for forex day traders.

Much like eToro, Libertex offers a great selection of major, minor, and exotic currencies. The platform allows you to trade via its website or through third-party providers MT4 and MT5. There is also a mobile app - should you wish to trade forex on the move. Visit Libertex Now. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

We discussed earlier how technical analysis is one of the best forex trading strategies to learn as a beginner. If you're ready to take the plunge - AvaTrade is a good option. This platform is fully compatible with MT4 and MT5 - which are both packed with technical indicators and candlestick time frames.

AvaTrade offers a free demo account that you can connect to the aforementioned third-party platforms - meaning you can practice technical analysis risk-free. This top-rated forex broker also offers plenty of educational resources that can help you learn how to read pricing charts effectively. When it comes to fees, AvaTrade allows you to enter and exit forex positions without paying any commission. Plus, when trading major pairs, you'll get some of the best spreads on offer.

AvaTrade is regulated in six regions and allows you to deposit funds with a debit card or bank wire. If you're ready to deploy one or more of the best forex trading strategies discussed today - we are now going to walk you through the process with commission-free broker eToro.

Visit the eToro website and click on the 'Join Now' button. You will need to provide some personal information - such as your full name, nationality, and contact details. Although you don't need to upload any ID to use the demo account facility - it's best to quickly do this now. After all, there will come a time when you decide to start trading with real money. All you need to do is upload a copy of your government-issued ID and a proof of address.

The MA lines will be a support zone during uptrends, and there will be resistance zones during downtrends. As we covered earlier, this allows you to fully automate your day trading strategies by mirroring the positions of an experienced investor. This is also known as technical analysis. Are NFTs a Scam or a Digital Bubble? View all posts by Kane Pepi. Without a doubt, the best day trading strategy for newbie traders is to ensure you understand the market that you are planning to speculate on.

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