Many beginner traders wonder what is the best way to trade Forex. What is the easiest way to start and what is the safest way to do it. Is it using expert advisors and robots or signals? Is it scalping, or trading long-term?
I’ll try to give a definitive answer to this question. Even though there are different advantages and disadvantages to any Forex trading strategy, as well as there are proponents of each method, I’ll give my opinion about what fits best for the beginners.
Let me cover the most popular methods and how I think they fit the beginners. First of all, there are the automated trading robots. The idea is that a software trades for you. You’d think that such a software would be the best option for a beginner, but what sounds too good to be true, most likely is. All of these robots are flawed and they don’t trade that well, a lot of loss happens. That’s not exactly what a beginner would want.
Signals are very similar to robots. The only difference is that you have to open and manage the trades manually. Again, these aren’t prefect and there are just more chances for beginners to make mistakes.
That leaves us with manual trading strategies. Yes, you need to learn to trade manually, and it is a tough skill to learn. But if you want to trade, you just have to learn it. So we’re only left with different trading strategies. There are 3 main strategies – scalping, intra-day trading, and long-term trading.
Scalping is the strategy of the highest risk, even though it enables the fastest profits. The risk is really high, though, so I would not recommends it for beginners.
Intra-day trading (meaning you open and close trades within the same day) holds less risk than scalping and to most traders it is the preferred option. It enables daily profits and the losses can also only happen just a few times per day. It can be a great way to trade not only for expert traders but intermediate too.
However, I would recommend long-term trading for Forex beginners. Other faster methods are too fast. Several swings can happen on 30 minute or 1 hour charts and they require fast decisions to be made. That’s not a perfect scenario for a beginner. On the other hand, long-term trading (in Forex the term “long-term” can mean a few trades per week) allows a “slow” market and a lot of time to research and make decisions. That I think is perfect for beginners.