Learn Basic Strategies - Currency Market Strategies

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

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

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

Once a trader has come up with their 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 strategies - these rules will help you as a trader to manage risk. This means that you will use 2 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'll put in the market. The most popular Forex money management rule use in forex and 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 1 single currency trade.

To learn about these 2 forex trading money management rules traders should read the money management lesson that is on the learn forex lessons section of this website under the forex key concepts courses.

Forex Trade Psychology Mindset

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

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