Best trading Systems for newbies

Money management as you said is of the essence. A trader should not only be well grounded in technical analysis, he should also be good in risk management. This is why you use a very powerful trading system and yet fail because you wrongly applied stop losses and profit targets.

Newbies should try to trade with their own skills and knowledge, Trading systems are very complicated to use and for that you have to get a bit of experience to understand how the market works.

It is technical trading could seem quite complicated for new traders. They could focus basically on price action. And if they are satisfied with their progress and want to up their game, they could try their hands on moving averages, it is really simple to learn for traders: basic getting signals from simple moving averages with reasonable period.

A good strategy is just too important to ignore. Some new traders jump into the forex, get on a fifteen minutes chart, see price movements here and there and then feel: how about I just hurry in and grab some pips and rush out too, I don’t really need a strategy for this quick one". But at the end, it turns into a big loss; a strategy is necessary, so that you can be organised on your trade, setting stop loss and profit targets.

To get this experience you are talking about here, I suggest they try that on a demo with good platform. And when they gain enough experience to move to real trading; it is easier they start with smaller position sizes as a risk management measure.

You will find this simple strategy useful. I have posted this a long time ago, but it is still useful. Just learn from the Videos on how to set it up: 301 Moved Permanently

You need to learn more than just the basics of Forex. Also, don’t run after people’s strategy, build yours.

First it is necessary for a trader to have a trading strategy. Moving averages are very good for new traders. But sometimes the moving average especially when you are using just one simple moving average on a chart can generate many fake-outs. So you could use the Bill William awesome oscillator that combines moving averages in a better way; making use of a 5-period and 34-period Simple moving average to measure market momentum and generate entry points.

Hey! The stochastic is great if you know how to use it, especially when it comes to trading oversold and overbought situation. When I am using it, I try to confirm the signal I get from the stochastic with Relative Strength Index (RSI) to get more accurate signals to enter and exit the market.

The posts here seem to focus on entry signals and filters. Entries are more or important depending on your trading style - not very important if you’re long-term trend-following. But exits are where you either make money or lose money. True test of a strategy is where does it get you out of a trade. True test of a good trader is can you get out where you should?

In any system there is a demo account go to any try to start.

MACD is a great tool to start with for newbies.

Is it really possible to get a trading system that can guarantee and entry and exit with Profit?

No, nothing is guaranteed 100%. But if you go long in an uptrend and short in a downtrend you have probability on your side. Where you exit is important but it should be rational - so, not just because you have made $xxx, or because its the xth winning trade this week. If your entry is based on TA, your exit should be based on TA also.

Hello there,

My recommendation for newbies is ‘keep it simple’. For that I can actually recommend a system being run on Babypips here by Robopip, it is the ‘SMA Crossover Pullback system’ (sorry, I can’t put links here yet). The reason I personally like it is that it makes use of the two basic analysis. One is trend following (moving averages) and the other is trend change or counter trend (stochastic) and combines them well. It is also simple and uses simple indicators. Another good point is that it is regularly tested here and the results are positive.

If this style does not suit your tastes there are other systems that are equally deserving of a look. They are also actively updated on this site and can be found in the “trading / trading systems” part of this website in the menu above (again, tried to put a link but can’t yet). I personally investigated these systems and used a very similar one to the SMA pullback which I found very workable, easy to follow and profitable. A great newbie system!

Good luck!

I prefer to trade manually. Though it is sometimes beneficial to use it, but we cannot earn as per the potential as we can through the manual trading. Thus the money not earned, is the money that we lose.

When choosing a trading system I feel that one of the most important considerations is “Does the system match my lifestyle and personality?”

My lifestyle, I have a regular job. I can only put in a few hours a day trading, roughly 7:00-8:30 AM EST, and an hour or so in the evening before bed. I am unable to monitor my trades during the day. So I need a system where I enter one trade a day in the morning that I can “fire and forget.”

My personality, I don’t need INSTANT gratification, but I do need positive reassurance. So I like making one trade each morning that I can be reasonably sure will either reach my target price or get stopped out by lunchtime. I make the trade on my computer, and then I can check its progress via an app on my smartphone.

So I trade a version of the London Open Breakout strategy modified for the New York session, with price targets built around the average daily range of the last 20 days.

Spend more time for analysis and never rush with placing a trade. Better to miss some entries if you are unsure about the outcome and trade some significant events like todays Draghi comments and Yellen speech ahead.

Guarantee? No. Absolutely and unequivocally not.

Also, ANY trading system will fail if the trader doesn’t adhere to it.

I believe that the newbies first need a good amount of knowledge, which they could acquire from the learning section of this forum, trust me they got a detailed overview of each and every topic related to the Forex Trading, in depth.