I have been looking through the free video course on FXAcademy, and it says that the best strategy for beginners is as follows:
[ul]
[li]Set a double bollinger band with a 20 EMA
[/li][li]Set a 50 EMA
[/li][li]Go long when the price is in the bollinger ‘Buy Zone’ (The top two bands) and the price is above the 50 EMA
[/li][li]Go short when the price is in the bollinger ‘Sell Zone’ (The bottom two bands) and the price is below the 50 EMA
[/li][/ul]
Apparently this is a really good strategy for beginners, then when you are acquainted with this, you should try to add one of each of the following:
There is no such thing as the best strategy for anything. It depends on the individual and if you want to settle on the best approach it is learning before even placing your first trade. Just my opinion.
I must agree with TheLastBear, there is no such thing as “one size fits all” in trading, but start with it on demo and see how it goes.
You will have to start somewhere to find out what suits you.
Following trend is one of the most common strategies people follow and i think a newbie should also try it or he can choose a strategy he is comfortable with.
In the beginning, just learn the basics, open a demo account and slowly build up your skills. Speaking from experience there is no point looking for a ‘beginner strategy’.
Thank for the help guys. I don’t mean a set strategy as such, it’s just something to start with then build up on as I learn more. I mean would this be a good style to start with?
Hey Anthony and welcome!
Ok so I would try the strategy you learn and test it on a DEMO account, YOu lose no money its fake money, on live account ( IF you use forexLTD they use live accounts with demo money) and see how it works. IF that strategy doesn’t work out, You can either build on it to improve it, or try a new strategy if you don’t like that one. Just becarful because changing strategys to much can easily confuse you and work against you. So just make sure your time with whatever stratgey you use, you got a fair amount of screen time with it before tossing it away. Forex mentor pro, they helped me a lot! As well the school here at babypips is also great! At least go through the babypips school fully at least once, and that alone will help a ton! IF you don’t have a lot of experiance in the market, demo a lot get the feel for things like support and resistance, and trend, candle stick formation ( babypips school will show you some ) FIbonacci is great too. Those to me are the main focus in my forex technical analysis. The school here will teach you all about those, than give it a try on demo, and really get some screen time in that is the biggest learning part is screen time, YOUR real experiances. You can always ask for help here, we always are willing to help!
Personally i will select Bollinger bands indicator as my favorite indicator and plus Moving average as guide for trend following . For me bollinger band can make my analyze know the limitation of price will move and moveing average is part of following trend indicator