In the forex world, simple trading strategies are available. Several traders may choose to use a long-term way of technique. Meanwhile, the rest could use the short-term or maybe combine those two different strategies. Those terms are actually relative. 

Why? It is because you may have different time references. For the beginner trader, the simplest methods are the most wanted ones. In fact, a factor that differs from each other is the approach used. There is an interesting fact.

Many people thought that the complicated strategies can give them more chances to get profit. In fact, that is not always right. Sometimes, simple trading strategies can help you maximize the benefits. Below are those strategies. 

The Long-Term Breakout

This method is so easy and quite effective to use. You just need to buy breakouts in the new highest graphic and then sell them in the new lowest position. Unfortunately, most traders are not willing to try this way due to a reason.

It is because traders think that they have been lost the price movement and wait for the graphic back. However, in a bigger movement, usually, a graphic will be not coming back. To get the maximum profit, there is a rule that you can do.

To do so, just focus on the valid long-term breakout and then manage the entry time with several momentum indicators. That is one of the simple trading strategies which are also done by professional. The key is using a level considered as important.

The long-term breakout commonly happens only several times in a year per currency. It means that it doesn’t happen too often. However, if a market movement happened, you may get a huge profit. That is why; it is better to sometimes try this strategy.

The Four-week Rule

This step can be said as one of the most effective simple ways for trading. It is originally created by Richard Davoud Donchian. He is an American – Armenian trader and for sure the professional market actor at this time. This four-week rule is quite popular.

The characteristic of these simple trading strategies is mechanism one. It is based on the breakout philosophy which has been discussed before. It also has one rule: buy when a currency reaches the highest price for four weeks.

You can sell it when the price reaches the lowest value for 4 weeks. This technique is so simple. In addition, there are so many traders who have been tried. So, far they get a good result and quite profitable as well. 

Overbought Oversold Trading

The trading ways above are included as long-term trading in the market. This next method is the short-term one. It is called forex swing trading where you are able to get the profit too from the overbought/oversold in the main trend.

You could also do it by using the simple trend line. When the price slips too far or rises too high, greediness sometimes will force the trader to get more. That when you identify the support or resistance area, check the volatility by using the Bollinger band. 

Next, use the stochastic counter tool to inform the movement. Swing trading is fun. You just need to be more disciplined. Furthermore, someone can master it in only several days. The most important thing is always to do it with the best forex broker.

One of them is Didimax. That is a broker which is so professional and has years of experience. It is trusted by the professional and suitable for the beginner as well. Feel the profitable and fun trading by joining Didimax forex from now.