Four high-margin trading strategies for beginners that are simple to implement

[JRFX Forex player]

Today, we're sharing four high-profit trading strategies summarized by a trader with 15 years of experience. These strategies have helped him move from losses to profits. Let's see which one suits you best!

1. Moving Average Crossover Trading Strategy

Features:
- Simple and easy-to-use trend-following strategy
- Easy to set stop-loss
- Applicable to any currency pair and timeframe

Strategy Setup:
- Add a 9-period Exponential Moving Average (FMA) to the chart
- Add a 14-period Exponential Moving Average (SMA) to the chart

Entry Conditions:
- Enter a long position when the FMA crosses above the SMA
- Enter a short position when the FMA crosses below the SMA

Exit Conditions:
- Set the stop-loss at the low/high of the candle before the crossover
- Set the take-profit at 1.5 to 2 times the stop-loss

2. MACD Divergence Trading Strategy

Features:
- Easy signal recognition
- Potential for substantial profits
- Suitable for short timeframes

Strategy Setup:
- Add the MACD indicator, set to Fast EMA 12, Slow EMA 26, and SMA 9

Entry Conditions:
- Enter a long position when both price and MACD show a bullish trend
- Enter a short position when both price and MACD show a bearish trend

Exit Conditions:
- Set the stop-loss near the support/resistance level
- Set the take-profit at the next support/resistance level

3. Forex Gap Strategy

Features:
- Uses clear rules for regular trading
- No stop-loss or take-profit settings

Trading Steps:
- Choose a highly volatile currency pair, such as GBP/JPY
- Check for a gap at Monday's open; the gap should be at least 5 times the average spread
- Enter a long position if Monday's open is lower than Friday's close, and vice versa
- Close the position before the end of the trading week

4. Support and Resistance Trading Strategy

Features:
- Low and clear stop-loss
- Relatively high accuracy

Trading Steps:
- Identify support and resistance levels, formed by two or more candlestick lows/highs
- Enter a short position when the closing price is below the support level, and a long position when it's above the resistance level
- Set the stop-loss at the low/high of the previous candle
- Set the take-profit according to the stop-loss or use a trailing stop

Join the Discussion
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[Fin_Trader]

MACD Divergence Trading Strategy is one of the best trading strategies, but it is better to use it on the H1-H4 timeframe. I have been trading at FXOpen for a long time and once started trading with this strategy to check the quality of trade execution.

 

[Ovidio Lettiere]

Here are four high-margin trading strategies for beginners that are simple to implement. Trend following involves buying in an uptrend and selling in a downtrend using moving averages to identify market direction. Breakout trading focuses on entering trades when the price breaks key support or resistance levels. Swing trading captures short-term price moves by utilizing candlestick patterns to identify potential reversals. Finally, grid trading places buy and sell orders at regular intervals, allowing traders to capitalize on market fluctuations consistently. I am free to apply any strategy on LQDFX broker’s trading platform and their superior customer support and VPS service are really fantastic.

 

[Fin_Trader]

grid trading is quite complex trading, it will be difficult for beginners to use it

 

[Polakandil]

The moving average is a lagging indicator, which means it gives a signal after a new trend is formed. MA crossover may be a trading system that is easy to understand, but because it is lagging, traders are often late in entering while the trend has passed.

 

[borzy]

The moving average is a lagging indicator, which means it gives a signal after a new trend is formed. MA crossover may be a trading system that is easy to understand, but because it is lagging, traders are often late in entering while the trend has passed.

Moving averages, especially crossover strategies, are lagging indicators, which can sometimes cause late entries or exits. While they’re great for confirming trends, their delay means you might miss the early part of a move. That’s why I like to combine MAs with other tools like RSI or price action analysis to catch trends earlier trading with HFM. Do you use any complementary indicators to counteract this lag?

 

[Polakandil]

Moving averages, especially crossover strategies, are lagging indicators, which can sometimes cause late entries or exits. While they’re great for confirming trends, their delay means you might miss the early part of a move. That’s why I like to combine MAs with other tools like RSI or price action analysis to catch trends earlier trading with HFM. Do you use any complementary indicators to counteract this lag?

In fact, the MA indicator for me is just a complement, when trading at FXOpen, I emphasize more on candlestick patterns and price actions, while the MA indicator can also sometimes be used for dynamic support resistance, although this is not always the case.

 

[borzy]

In fact, the MA indicator for me is just a complement, when trading at FXOpen, I emphasize more on candlestick patterns and price actions, while the MA indicator can also sometimes be used for dynamic support resistance, although this is not always the case.

Yeah MAs are lagging indicators and can't be place as a cornerstone in your trading strategy. You can hardly spot supply-demand imbalance with MA-based trading strategies.

 

[Polakandil]

Yeah MAs are lagging indicators and can't be place as a cornerstone in your trading strategy. You can hardly spot supply-demand imbalance with MA-based trading strategies.

Lagging indicators have the weakness of being left behind by market trends because they provide signals after a trend is formed. By studying other trading concepts, both supply demand or smart money concepts could support traders in making decisions.

 

[Fin_Trader]

Lagging indicators have the weakness of being left behind by market trends because they provide signals after a trend is formed. By studying other trading concepts, both supply demand or smart money concepts could support traders in making decisions.

Therefore, if a trader uses lagging indicators, it is advisable to track different timeframes to minimize the delay.

 

[kplFX]

Thank you, this post has been helpful for me.