Learn Basic Strategies - Currency Market Trading Strategies

For beginners wanting to use basic trading strategies to trade the market there are a few other basics which a trader should know that will help to make their basic trading strategies they are using to become more successful.

After a trader has learned about technical analysis of indicators & the analysis of forex charts, a trader will need to come up with basic trading strategies. The basic trade strategies that a beginner trader uses can be based on the following most commonly used basic trading strategies in Forex.

A trader can learn about the basics of how to come up with a strategy by learning from the above examples of basic trading strategies.

Once a trader has come up with their trading strategy, they should also include the following so that to make their basic strategies more successful.

1. Money Management Rules

2. Forex Trading Psychology

Money Management Rules

Money management rules should be part of your basic trading strategies - these rules will help you as a trader to manage risk. This means that you will use the two rules of forex money management - these are risk reward ratio and drawdown reducing method when placing your trades to determine the lot size that you will put in the market. The most popular Forex money management rule use in forex & the one that you should also add to your trading is the rule which says that a trader should never risk more than 2 % of their account equity on any one single currency trade.

To learn about these 2 forex money management rules traders should read the money management tutorial that's on the learn forex tutorials section of this website under the forex key concepts lessons.

Forex Trading Psychology Mindset

In order to become successful when trading the forex currency market a trader has to learn about forex trading psychology. The forex trading psychology or mindset that is required to become successful in forex trading is one that avoids the emotions of fear & greed while trading and is a mindset of total discipline that the currency trader will follow all their trading rules & their trading strategy & only trade with trading signals which are generated by their strategy. With discipline a trader will not trade unless their trading system gives a trading signal. A trader will have the mindset of only following their trading system 100% all the time without second guessing the system. A disciplined Forex trader will also not place trades in the market just because the market has started to move upwards or downward, instead a trader will wait for a signal to trade to be generated by their basic trading strategies.

In order to learn more about forex psychology and how to manage emotions while trading the forex market a trader can read the forex psychology guides from the learn forex tutorials section of this website under the forex trading key concepts lessons.