3 Simple, Effective and Profitable Forex Strategies
Simple effective Forex strategies are highly required to ensure you can get the best profit. Forex market is very unpredictable and the competition is extremely high. In this environment, before trying to generate a lot of profit, you must make sure that you move in caution so that you won’t suffer a loss. And you can achieve this by applying these basic and simple yet effective forex strategies.
Use Horizontal Level Strategy
As a forex trader, horizontal level is one of the first things you learn when you jump into forex trading. As time goes by and more experience is gained, many people start to abandon this strategy. That is an utterly wrong move. Horizontal level can minimize risk for you because it gives you a clear representation of the markets’ resistance and support point. When a breakout happens or when the price falls under the support level or increase above the resistance level, you can make a new horizontal level and decide what you are going to do from there. This strategy will make sure that you are fully aware of the risk of an action you will take.
Combine the Horizontal Level with Price Action
Horizontal level will help you monitor the resistance and support level in the market. But it is not enough to help you gain profit. You must seize the opportunity by monitoring the price action. Watch the price action in the resistance and support level. Price action and horizontal level will help you making a better plan for your next action by reading the price movement in the past. By combining these two simple effective Forex strategies, making a profitable movement will be more likely.
Prepare Effective Exit Strategy
You can pompously enter the market after observing the trend and price level. But you won’t gain mush profit if you don’t equip yourself with an adequate exit strategy. Exit strategy is all about timing. You must stop the loss when the price is going down below the entry price because that is when the market becomes volatile. But also bear in mind that trend is changing all the time, so you must only stop the trade when you realize that the reward is higher than the risk.
Forex is a risky business. But when you do it well and carefully by researching the market and observing the current trend, forex can generate remarkable profit. Make sure you always make a move after equipping yourself with adequate knowledge of simple effective Forex strategies.