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Easy Forex Strategies for Beginners

Easy Forex Strategies for Beginners

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First Published date: 15. August, 2022
Last Updated: 31. January, 2023
Fact-checked by Adrian Müller

Forex is one of the most liquid forms of trading. You can also start trading forex with the right mindset and determination. This guide will cover tips and easy forex strategies to help you hit the ground running.

We will dive into the nitty gritty of forex trading. In addition, we will also teach you essential terms you need to know to start forex trading today! So, without further to do, let’s get started.

Table of Content

How to Start Forex Trading

In 2023, you’ll most likely trade forex online. Technology and tools have made it easier to trade forex. As a result, it’s now more accessible than ever. Although it might seem daunting at first, with some hands-on experience, you’ll get the hang of it.

Hands-on experience is the keyword here. You won’t learn to play the guitar by only watching a few tutorials.

Similarly, you won’t learn to trade forex by only reading tips and strategies. The best way to learn is to start trading and see how it works in the real world. Here are the steps that’ll help you get started.

Step 1: Choosing How to Trade Forex

Before you open an account or choose a platform, there’s some housekeeping. You need to decide how you want to trade forex. Individuals and beginner traders can trade forex via CFDs or a broker. Large trading can be millions of dollars.

It’s safe to assume you won’t be doing millions of dollars of forex trading when you first start. Therefore, trading forex CFDs or through a broker are the two most accessible options.

Step 2: Learn How It All Works

A typical pattern you’ll notice is knowledge is important in forex trading. To become a successful trader, you must understand how it works. You might face hurdles at first. But as you gain more experience, you’ll get more comfortable trading forex.

Step 3: Find a Forex Broker That’s Right for You

Since you’ll trade forex online, finding a broker won’t be the tricky part. The thing to look for is what works for you. As we mentioned, open a leveraged account if you’re trading forex CFDs.

There are other essential things to remember when choosing a broker. The broker should have regulators and be reputable. This is very important.

A well-reputed broker gives you peace of mind – regulators like the U.S. Commodity Futures Trading Commission (CFTC) and the U.K.’s Financial Conduct Authority (FCA) are suitable regulators.

A broker that mentions these regulators should be reliable. Another thing to look for is whether or not the broker keeps your funds separate from its funds.

Step 4: Open A Forex Trading Account

Now it’s time to get some hands-on experience. Start by opening an account. Apart from an account, you’ll need an internet connection. A smartphone or laptop will work just fine. But make sure you’re trading with a reliable connection.

If your connection drops, you might take losses. In addition, for a CFD forex account, you need to open an account with a provider that gives you leverage, which brings us to our next step.

Step 5: Fund Your Trading Account

Reputed and prominent brokers will make it easy to fund your account. Standard methods like wire or bank transfer should be available. Many brokers also support funding through PayPal or Stripe. Look for demo accounts as well but more on this a bit later.

Step 6: Get a Trading Platform

After choosing your broker and opening an account, you’ll need to access their trading platform. Trading platforms make the trading experience much more personalized and seamless. Your broker might have proprietary trading platforms. So, be sure to check on that.

Step 7: Make Your First Forex Trade

Now you can start trading. Most reputable brokers will have demo account options. These are good practices if you are uncomfortable trading real forex or don’t feel ready to handle live funds.

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79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Demo Forex Trading Accounts: What You Need to Know

Demo accounts are what they sound like. They are real accounts where you don’t trade real currency pairs. Instead, demo accounts can be used for practice. They are great for beginners that have yet to gain forex trading experience.

It can help you get familiar with the different forex markets. You can also use it to perfect your strategies and test tips and tricks. The best part of demo accounts is that the market conditions are based on real-life data.

So, your ‘demo’ trade will be a very close representation of trades if you make actual trades with real money. Demo accounts are primarily free. Once you have more confidence, you can start trading live accounts. Live accounts are ones you use to trade real currency pairs in forex with real money.

Forex Trading Terms You Need to Know

You’ve seen us mention terms like currency pairs, CFDs, and more. These are standard forex trading terms.

If you’re new to forex trading, you should take some time to get familiar with these terms. It’ll help you understand everything works much better. Here are some standard forex terms you must know.

Currency Pair

These are the most important forex terms. Because forex trading is simply trading currency pairs, you’ll have a base currency and a quote currency. In which you’ll either go long or short. If you go long on the base currency, you’ll naturally go short on the quote currency.

For example, if you’re trading USD/EUR pairs, USD is the base currency, and EUR is the quote currency. Think of it like EUR vs. USD.


Forex trading is making speculations on particular currency pairs. To be more specific, you’re speculating on the exchange rate movements. The position is the amount of currency that gives the trader exposure to a particular pair’s exchange rate.

Long and Short Position

A common term that’s used alongside position is long and short. A trader takes a long position when they think the currency pair’s exchange rate will increase. In contrast, a short position is when a trader believes the exchange rate will decrease.


CFD stands for Contract for Differences. Unfortunately, you can’t trade forex CFDs in the U.S. However, it’s legal in other countries. You don’t own the underlying asset.

Leverage and Margin

Leverages are one the most important things to understand. It could be the reason you earn significant returns or suffer tremendous loss. Leverage means the size of a trading position you can control.

You control with a given margin, and this margin is the amount your broker holds as collateral. You’ll have to pay this collateral if you make a loss. Leverages can vary depending on the broker to broker.


An order is mainly for your broker. It tells your broker when to execute a transaction. When you tell your broker to buy $50,000 against EUR, you’re giving an ‘order’ to your broker to make that transaction for you.


These are financial tools whose value comes from other assets. Forex derivatives are popular.


A percentage point is a minimal change in the exchange rate. The size can differ, but it’s usually 0.0001.

Easy and Effective Forex Trading Strategies

As a beginner, your best bet is to start with a demo account first. It will help you get more confidence and can try out your strategies.

There are many proven strategies out there. But not all of them will work for everyone. The more experience you gain, the more techniques you’ll be comfortable with. However, here are three simple strategies to start with.

1. Inside Bar

In this strategy, traders use the pending order to trade a breakout. The direction of the breakout should be in the direction of the trend. Thus, it’s best to use this strategy as a continuation pattern.

The price action dominated by a seller will be weaker. To implement this strategy, you’ll place a stop order to trade a breakout. Then you’ll cancel the order once the order is triggered. Remember to place only one order.

2. Trend Trading

Beginners should look for reliable strategies – Trend trading is one of the most reliable strategies. However, you must have an eye for detail and look for possible trade opportunities in a chosen price trend in trend trading.

Any trend won’t be enough. For this strategy to be reliable, you’ll need a stable trend. You can figure out reliable trends by looking at the strengths, weaknesses, and overall trend direction.

Trend trading is flexible since it can work for short and long-term trading. That said, it’s more suitable for long-term trading.

3. Pin Bar Trading

Another effective, easy trading strategy is pin bar trading. Using this strategy, traders can check for price momentum. It’s an easy strategy to follow since it’s obvious to chart. Traders can use technical analysis to help perfect the pin bar trading.

5 Tips for Forex Trading

You’ll need some tips to go along with the strategies. Using both will help you make the most out of the trades.
Again, with more experience and confidence, you’ll be able to identify patterns and strategies yourself. But these tips will help you become a well-rounded trader.

1. Know Your Trading Style

Before you start trading, you need to be realistic and set goals. That’ll keep you grounded. Goals also give you a framework on which to base your trading strategies. You can check whether your trades will take you where you want to go.

In addition, you should know your trading style. If you’re risk averse, your strategies should be able to adapt to that.

2. Keep Learning

You might get lucky on your first trades and get some significant returns. But remember to keep learning about the market. Knowledge is potent in forex trading. Therefore, you should always focus on educating yourself.

3. Stick To a Plan

While there isn’t a single right way to trade forex, sticking to a plan is better. Your plan is a fundamental part of your trading career. Therefore, to become a successful forex trader, you’ll need to be able to stick to a plan.

Ideally, it should outline everything you want to achieve from forex trading. It should also tell you your risk tolerance and evaluation criteria. The hard part is sticking to a plan. Trading has some inherent risks. When you face some losses, it can be easy to blame the plan and try to veer off the tested path.

But if you have a plan that works, stick to it. There’ll be a couple of losses, regardless. But don’t let the irrational side take over. Sticking to the plan and trusting the process is crucial.

4. Be Consistent

Consistency is key. Even if you have some losses, stay consistent. It compounds over time. You’ll be surprised how consistent practice improves your forex trading skills.

Remember that a strategy is only effective if you are consistent about it. Therefore, you might not make the most out of a strategy if you don’t stick with it long enough.

5. Realize Your Limits

One huge mistake many beginners make is that they don’t know their limits. Beginners quickly produce bad trades and let emotion take over. Forex isn’t a get-rich-quick shortcut.

You can earn significant profits in forex trading. It’s called the most liquid trading for a reason. But also, be reasonable. Never trade forex with the money you’ll need for day-to-day living expenses. If you’ve suffered a loss, take some time to rethink and reevaluate.

Wrapping Up

Hopefully, these tips and easy forex strategies will help you get the most out of your trading journey. It’s possible for beginner traders to learn forex trading. The question isn’t always about how to start with forex – that’s the easy part.

Instead, being consistent, learning new strategies, and improving as a trader are all more important. The more practice you have, the better you’ll get.

About the author – T.R. Carnegie

I am a retired investment banker who has invested heavily in energy stocks since 2005. My goal is to help people understand what is really going on behind the scenes and to provide them with the information they need to take control of their financial future. These days, I am an energy stock investor who has made money from oil, natural gas, coal, nuclear power, wind, solar, biofuels, storage, and battery technologies. In this blog, you’ll find ideas about investing in companies that will help us reduce our dependence on fossil fuels, increase access to clean energy, improve efficiency in manufacturing processes, and build products that save people money and protect the environment.

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