As a Beginner to Forex trading, one will be probably be asking, where should I start?

Trading strategies in the Forex market are as numerous as the traders themselves. Beginners who enter the market have many perceptions of their own about how trading should be conducted. Although this is the case, every beginner develops his own style of market evaluation and trading strategies in the profitable Forex market.

A planned entry into the world of currency trading is the best approach as opposed to ‘winging it’ and trading impulsively. Planning your trading can be done effectively with the help of technical analysis and fundamental analysis. Although some traders favor one approach over the other they are both useful for traders as they show different aspects of the same Forex market. So, the best choice for a beginner would be to combine both these methods of analysis and plan their trading.

Another way to formulate a good plan is by taking the support and resistance levels shown in the technical analysis charts. The support level signifies the bottom of the market and the resistance level signifies the high price for the currency pair past which traders rarely venture to speculate. A trader knows that in general, if a currency pair breaks one or the other of these levels it usually continues in the same direction and thus the trader can plan his trading accordingly.

Another trading strategy that is commonly favored is the Simple Moving Average (SMA). Here, what is considered is the average price during a given period reached by a currency pair which eliminates fluctuations from the equation presenting a clearer picture of the currency price movements. Again, the general tendency is towards holding the pattern shown for rising or falling currency pairs.

As a Novice embarking on your Forex journey, keep in mind to evaluate the market using a combination of different strategies that work for you. With a bit of time and experience it will become easier to make a successful plan for trading currency.