Free Forex Strategies: Where to Start?

Forex trading is a professional job that requires a good understanding of market trends and forex news. However, the timing of entry and exit plays a crucial role in determining your profit level. By using free forex strategies, you can seize investment opportunities as much as possible and ensure profitable trades.

Five Most Popular Free Forex Strategies

Here are some free forex strategies to help you improve your chances of profitable trading:

Buying on Margin: When buying on margin, brokers allow clients to use higher levels of leverage. As a result, traders can invest amounts much higher than the actual value of their accounts. However, traders face high risks because profits heavily depend on trade entry and exit. Only experienced traders can achieve good returns when buying on margin.

Historical Levels: Refers to the maximum and minimum range within which a currency pair's value fluctuates over a given period. Analyzing these levels can help predict the currency's potential future value. Analyzing historical values is a time-consuming task, but it is the safest strategy for beginners. Without major news releases, the likelihood of a currency's value deviating from historical levels is very low.

Stop-Loss Orders: Using the stop-loss order strategy, traders can predetermine the value of a currency pair. This helps reduce the risk of significant losses and increases the likelihood of profitable trades.

Managed Accounts: The primary target of this strategy is individuals who want to invest in the currency market but are not interested in actual trading. Managed accounts operate similarly to mutual fund contracts. Individuals invest funds in a forex trading company, where experienced traders use the investors' money to conduct forex trades. The resulting profits or losses are shared by the individual investors. Although managed accounts are not highly profitable, they save investors time and effort.

Simple Moving Average (SMA): Also known as SMA, it is the average change in value of a specific currency pair over a past period. You can use SMA values to make investment decisions for any given currency. Investing in currencies with stable SMA values is a safe way to trade forex.