If you are looking for an easy forex strategy, that means you have looked at all the tutorials, systems and strategies and have found them wanting. What you probably concluded was that they were all too complex and would be impossible for you to trade with.
If you have come to this realization, that means you are honest with yourself, know your limits and have a realistic view of what trading is all about. This also means that you realize the best forex trading strategy is one in which you can trade easily and competently.
Different forex trading systems will make more sense to some more than others. Here are a few forex trading strategies that make sense to me and ones that I feel comfortable with. Just as a note of advice.
The simpler your strategy is, the less trading opportunities you will have. That is a good and bad thing. You can’t chase all the good trades that are out there. That is impossible for one person to do. But if you can’t find any entrance opportunity, or can’t find one on a regular enough basis, you will not be active enough to make any more. The other thing that might happen is you might become delusional and see trading opportunities that are actually not there.
A strategy with moving averages (MA) is a great way to start out. Moving averages are a way to smooth out prices to spot trends. You basically decide what period you want to look at. If you’re looking at a 30-day moving average, you will take the closing prices of all those days, add them up and then divide by 30 and plot them on your chart. That is how it is calculated, but you don’t have to do it yourself. Most charting platforms will have this function.
One way to use this is to look for crosses. When a short term MA crosses above a long term MA, you might see a coming trend. If you see the short term cross below the long term, it might be a bearish sign. A common one that is used is the 50-day and the 200-day MA’s, which is often called the golden cross or the death cross.
Once there is a crossover, you should wait for a bit and make sure that the trend is real. Sometimes the prices and the trend will whip back and will be a false forex trading signal.