Trading forex without a strategy is a bit like starting out on a trip without a map since you never know where your account will end up. You might make money or lose money, but you have no idea which is more likely.

The big advantage of having a forex trading strategy is that you can take some of the guesswork out of trading currencies. Read on to find out more about the best forex trading strategies and how to choose among them to trade currencies successfully.

Here are some best and useful trading strategies for beginners:

1. VWAP - a solid foundation for an intraday trading strategy

VWAP stands for the volume-weighted average price - it’s an indicator that we deem to be superior to many other charting tools because it takes into account both the trading volume and the price of a currency. It is calculated by multiplying the sum of price by trading volume and then dividing that number by total volume.

2. Moving average crossover

Moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. That average can be taken over different periods of time – anything from 20 minutes, to three days, to 30 weeks or any other time period a trader chooses.

Moving average strategies are very popular and can be tailored to any time frame, suiting both long-term investors and short-term traders.

3. Scalping

Forex scalping is a popular trading strategy that is focused on smaller market movements. This strategy involves opening a large number of trades in a bid to bring small profits per each.

As a result, scalpers work to generate larger profits by generating a large number of smaller gains. This approach is completely opposite of holding a position for hours, days, or even weeks.

4. Support/Resistance and two Stochastics - a powerful combo for successful Forex trading

Trading Forex using support and resistance (S/R) zones is probably the oldest play in the book. Nevertheless, they remain one of the most efficient tools for building profitable Forex strategies around.

5. Trend trading

Trend trading is another popular and common forex trading strategy. It’s also easy for beginners to understand and follow.

The technique involves identifying an upward or downward trend in a currency price movement and then choosing trade entry and exit points. These points are based on the positioning of the currency's price within the trend, as well as the trend's relative strength.

6. Employing Parabolic SAR and MACD to maximize the profits

The Forex strategy that utilizes the Parabolic SAR and MACD is fairly simple and applicable to all timeframes higher than 15M, and to many currency markets. Besides, these two indicators are available on all Forex trading platforms for free, thus making it even more useful. It comes to show that your strategy doesn’t have to be overly complicated in order to be profitable. Oversaturating your strategy with complex trading tolls would oftentimes result in total discordance. At the same time, throwing SAR and MACD on top of candlesticks would keep the chart clean while providing enough signals for successful trading on Forex.

7. Swing or Momentum Trading

Swing trading, sometimes also known as momentum trading, consists of a medium-term trading strategy that aims to capture more market moves. Swing traders do this by trading both with major trends and also against them when the market is correcting, so they should be willing to hold overnight positions.

You can learn more at forum.forex

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