DotBig Forex: Best Forex trading strategies for beginners

Are you going to take the first steps in trading but have not yet chosen a strategy? Would you like to get acquainted with different types of Forex trading systems for beginners and professionals?

Below, find various methods by which you can start trading successfully on the Forex market with DotBig broker.

What is a Forex Strategy for Traders?

A Forex trading strategy is a pre-thought-out set of actions that allows you to achieve your goal as quickly as possible with an optimal level of risk. The main goal is to get a certain percentage of profit.

The trading system answers the following questions:

1. What is the goal, and how quickly should it be achieved? Based on this, the type of strategy is selected by the timing, frequency of signals, and the level of risk.
2. What are the main trading assets and their level of volatility?
3. Which timeframe is the main for analysis, and which is for trading?
4. What tools are used to search for a signal: fundamental, technical, or graphical analysis?
5. What is the combination of signals for placing an order to exit the Forex market?
6. What are the risk management rules?
7. What should I do in case of unforeseen situations?

Having a trading plan and a reliable broker, like the DotBig Forex platform, you will quickly respond to any changes. The lack of a strategy is chaos in actions and a waste of time.

Types of Forex Strategies

The types of strategies are determined by the duration of holding open positions. Open positions are those transactions that the trader opened, that is, bought or sold a currency, but did not close, that is, did not perform a reverse purchase and sale operation. The optimal time to make a sale or purchase transaction is usually determined by the trader’s goals, market conditions, and forecast horizon.

What are Forex Strategies?

Depending on the duration of holding a position, all strategies can be divided into three groups.

Long-term methods

In this case, an open position can be held from several weeks to a year. It allows you to monitor the market calmly without worrying about the current state of the transaction. Such strategies can be used by both beginners and experienced traders with a conservative trading style who want to get a small but stable result. However, to work in this style, a trader must have a certain nature since not everyone can observe changes in profit on a position for a long time.

Medium-term tactics

They are usually based on technical analysis, while positions remain open from one day to two to three weeks. During this period, a trader can profit from 50 to 200 or even more points, depending on the current market volatility.

Short-term strategies

These are the most profitable but also the riskiest methods of trading, because trading takes place in just one day. Sometimes it is challenging to predict price movements.

Expert advice

Warren Buffett has a reputation as one of the most successful investors in the world. There are ups and downs in his history of trading in financial markets. Here are some useful recommendations for novice investors by Warren:

Use of put options

Warren Buffett’s trading strategy for this asset involves selling an option to invest in undervalued stocks. In the early 90s, the investor managed to earn 7.5 million dollars using this technology. At that time, Warren Buffett suggested a drop in Coca-Cola’s stock price.

Investments in small companies

This strategy was used by a well-known investor at the beginning of his investment career, choosing organizations with a relatively small market capitalization.

Sale of unprofitable assets if necessary

Buffett has repeatedly made mistakes in the investment process. A significant contribution to his success as an investor was his ability to abandon unprofitable investments in time.

Thus, to make profits from trading and investing use the experience of well-known investors to reduce the risks of losing money in the financial markets. However, do not forget about improving your knowledge and skills in trading and choose a reliable broker such as the DotBig trading platform.

Features of the DotBig Broker

Forex trading is one of the most popular ways to earn money online. This is due to the simplicity and accessibility of the market. The main way is to buy a stock when its value drops and sell it when it rises. Of course, to understand when this will happen, you need to study the forecasts and materials. Today they can be found on the broker’s website. Analysts study various stocks and describe how their price will change, in simple language that even beginners can understand.

For example, you can buy stocks or trade currency pairs using the terminal on the DotBig site.

Moreover, the broker offers advanced tools to make trading more efficient. Online traders can copy the deals of experienced ones and use their strategy. The broker also provides all the necessary functions: the ability to configure stop loss and take profit parameters, and more than 50 indicators for evaluating stocks, charts, and timeframes.

Summary

Forex trading has been around for quite some time, and experienced traders have been successfully working on it. However, novice Forex participants sometimes make serious mistakes from the very first steps and quickly leave the market forever. In most cases, it happened as the trader could not choose the right strategy or ignored its rules. By selecting a reliable DotBig exchange and learning the best trading strategies, you have every chance to succeed in this business.