Trading, it is important to start with a strategy that is simple, easy to understand, and manageable in terms of risk. Here are some strategies that are powerful and accessible for beginners
1:Trend Following💲
the description:
This strategy involves identifying the market trend and making trades in the same direction as that trend.
Why is it good for beginners:
Easy to understand and implement: It is based on a simple principle, which is following the general market movement.
Less stressful: Because trading is done in the main market direction, which reduces psychological pressure.
Use basic indicators: Can be used with simple indicators such as moving averages.
Basic tools:
Moving Average (MA): To identify and confirm a trend.
Relative Strength Index (RSI): To check cases of overbought or oversold.
More specific details:
Simple Moving Average (SMA):
The 50-day and 200-day moving average can be used to identify long-term trends. If the 50-day moving average is above the 200-day moving average, it indicates an uptrend, and vice versa.
Relative Strength Index (RSI): The 14-day RSI is used to check overbought (above 70) and oversold (under 30) levels. This indicator helps in making appropriate buying and selling decisions based on market momentum.
Using these tools, beginners can execute trend-following trades with greater confidence and avoid random decisions that may lead to losses.
