3 Simple Trading Strategies that Every Beginner Trader Must Know

3 Simple Trading Strategies that Every Beginner Trader Must Know

If you’re new to trading, then you need to learn the best trading strategies out there! There are many different trading strategies that can be successful, but some are better than others for beginner traders.

In this article, we will discuss three simple trading strategies that every beginner trader should know about. These trading strategies are easy to learn and can help you start generating profits from the markets right away!

OK, Let’s start with trading strategy 1:

The Trend Trading Strategy.

This is one of the most popular trading strategies out there, as it involves following trends in the market and taking advantage of them to make profits. To get started with this trading strategy, you will need to familiarize yourself with technical indicators like moving averages and oscillators.

Trend trading is an investment strategy designed to exploit the momentum of a security’s upward (or downward) price action. When following this approach, traders enter into long positions when they detect that an asset is trending up in value – making for profitable opportunities and enhanced returns.

Sounds simple right?

But do not get tempted to enter into trading without fully understanding how the trading strategy works. In order to be successful when trading momentum, you need to know your risk tolerance level and develop an exit plan.

Also, be sure to always keep a close eye on market conditions and any fundamental developments that could affect your trading positions.

Next up is trading strategy 2:

The Swing Trading Strategy.

This trading strategy is all about trading on short-term price movements, making it a great option for beginner traders who are just starting out in the markets. To get started with this trading approach, you will need to familiarize yourself with technical indicators like moving averages and trend lines.

Swing trading is a strategic method of profiting from constant changes in the market. When traders sense that the price of a security will rise, they buy it, and when they sense that its value will fall, they sell it.

Swing traders use this upward and downward trend in prices as an opportunity to profit by buying high and selling low – taking advantage of the fact that they can ride out temporary highs or lows until they reach their desired outcome.

Sound like Trend trading does it? But they are not the same. Check this:

Difference between Trend trading and Swing Trading

Compared to trend traders, swing traders take bigger positions and are more exact with their entry timing.

They also trade frequently over a smaller period of time, focusing on short-term price fluctuations rather than the broader economic news that trend traders concentrate on.

Last but not least is the trading strategy #3:

The Scalping Trading Strategy.

Scalpers primarily rely on quick trading decisions and executing orders at the best possible price to make consistent profits, often holding positions for only a few minutes or seconds at a time.

One of the key elements of scalping trading is being able to manage your trading positions effectively, which means having a good exit plan in place and using trading tools like stop-loss orders to prevent you from incurring major losses.

Scalping is a centuries-old stock trading practice that involves an investor buying and selling the same security multiple times over the course of one day. This well-known strategy allows investors to capitalize on intraday price jumps in stocks or sectors, creating potential financial profits with each transaction.

Is scalping a good trading strategy to start with?

That depends on your trading skill level and risk tolerance.

Scalping trading requires a high degree of technical understanding, as well as close attention to market conditions and trading tools like trading platforms, price trackers, and trading indicators.

However, if you are an experienced trader who is confident in their abilities and comfortable trading with a high level of risk, then scalping trading might be right for you.

Wrapping it up!

Whether you choose to focus on trend trading, swing trading, or scalping trading, there are many tools and strategies at your disposal to help you succeed as a beginner trader in today’s fast-paced market environment. Good luck!

Adam Harris

FXGlobe Ambassador Adam Harris is based in London, UK. He’s been trading professionally since 2013 and his specialties are technical and trend-based trading.

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