👋 Introduction: Starting Strong in Forex Trading

If you’re new to forex trading, the first question that probably comes to mind is: “Where do I even begin?” With so much noise online, it’s easy to feel overwhelmed.

The good news? You’re not alone—and you’re in the right place.

I’m Hassan Safari, financial risk manager and CTO at a regulated forex broker. With 7 years of trading and investing experience, I’ve seen beginners struggle, succeed, and everything in between. This guide is here to give you clarity.

We’ll cover:

• What forex trading is (in plain English)
• The main types of forex trading strategies (not just trading styles)
• A step-by-step plan to help you choose and apply one

Let’s dive in.

🌍 What Is Forex Trading? (Simple Breakdown)

Forex stands for foreign exchange. It’s the global marketplace where currencies are bought and sold.

As of 2025, the forex market moves over $7.5 trillion daily, making it the largest and most liquid financial market in the world (BIS, April 2025).

Why Is Forex Trading So Popular?

• Low barrier to entry – start with just $100
• Available 24 hours a day, 5 days a week
• Access to leverage (but use it wisely!)
• Opportunities in both rising and falling markets

⚠️ Leverage can magnify profits—but also losses. Always trade with a risk plan.

🧠 Types of Forex Trading Strategies (Explained Clearly)

Unlike trading styles (e.g., scalping or swing trading), a trading strategy is a rule-based method for making trading decisions. It answers: When do I enter and exit a trade?

Here are the most effective forex trading strategies are using in 2025:

1. Trend Following Strategy

Trade in the direction of the prevailing trend.

• How it works: Use moving averages, trendlines, or indicators like ADX to confirm direction.
• Tools: 50 & 200 EMA, price action, trendline breaks

✅ Great for: Beginners who prefer clear, directional markets
⚠️ Avoid during sideways markets

Learn More About : What is a Trend Following Trading Strategy?

2. Range Trading Strategy

Trade between strong support and resistance when the market is moving sideways.

• How it works: Identify price “zones” where the market bounces up and down.
• Tools: Horizontal zones, RSI (for overbought/oversold confirmation)

✅ Great for: Calm markets and structured setups
⚠️ Avoid when price breaks out of the range suddenly

Learn More About : What is Range Trading Strategy? A Complete Guide

3. Breakout Strategy

Enter when price breaks above resistance or below support—often after consolidation.

• How it works: Wait for price to build pressure, then break a key level with volume.
• Tools: Chart patterns (triangles, flags), volume spikes

✅ Great for: News events or opening sessions (London/New York)
⚠️ Watch out for false breakouts

4. Retracement (Pullback) Strategy

Enter a trade during a pullback in a trending market.

• How it works: Wait for a temporary dip (or rise) against the trend and enter on a bounce.
• Tools: Fibonacci retracement, moving averages, bullish/bearish candlesticks

✅ Great for: Trend traders looking for better entries
⚠️ Patience is key—don’t enter too early

5. News-Based Strategy

Trade sharp price movements caused by major economic releases.

• How it works: Track key events (NFP, CPI, interest rate decisions), then trade the volatility.
• Tools: Economic calendar, news feeds, fast execution platform

✅ Great for: High-risk, high-reward setups
⚠️ Spreads widen, slippage is common—manage risk tightly

6. Price Action Strategy

Base your trades purely on chart analysis, without relying on indicators.

• How it works: Use candlestick formations (pin bars, engulfing, etc.), structure, and market context.
• Tools: Naked charts, support/resistance, candlestick patterns

✅ Great for: Traders who want clean charts and mastery of behavior
⚠️ Takes time to master—but highly rewarding

🔁 How Trading Style and Strategy Work Together

To clarify:

• Trading Style = How long and how often you trade (e.g., scalping, day trading)
• Trading Strategy = The method you use to make trade decisions (e.g., trend following)

🧠 Think of your style as the “when” and your strategy as the “how.”

You can mix and match:

• A day trader using a breakout strategy
• A swing trader using trend following
• A position trader using news-based strategies for macro trends

✅ Step-by-Step Guide to Choose the Right Strategy

Step 1: Know Your Time Availability

Step 2: Understand Your Personality

• Hate waiting? → Breakouts or News-Based
• Prefer calm, structured moves? → Trend Following or Pullbacks
• Like to analyze? → Price Action or Range Trading

Find Your Trading Style in 5 Minutes : A Quick Quiz

Step 3: Test It on a Demo

Use a demo account to simulate real trades with no risk. Stick to one strategy for 30 days before judging results.

📌 No strategy is perfect. The key is consistency and adaptation.

Step 4: Go Live with a Small Account

Start with $100–$500. Focus on:

• Risk management (1–2% per trade)
• Trading journal (log every trade with reasoning and result)
• Review and refine weekly

👤 My Unique Insight: The Strategy That Changed My Trading

Back in 2018, I started by chasing fast profits through news trades and scalping. I burned my first account fast. When I shifted to trend following and later mixed in price action, everything changed.

That was the foundation for building a strategy that fits me—and it worked.

📝 Summary: Which Strategy Should You Choose?

Let’s recap what we covered:

• Forex trading is accessible, global, and full of opportunity—but requires strategy.
• A trading strategy is how you make decisions; a style is how often you trade.
• The best beginner strategies in 2025:
  • Trend Following
  • Breakout
  • Pullbacks
  • Price Action
• Choose based on your time, personality, and willingness to learn.

🚀 Ready to Take Action?

🎯 Pick one strategy from this list
🧪 Test it on demo for 30 days
📈 Log your trades and progress
📣 Share this guide with a fellow

Stay consistent. Stay patient. The edge is built over time—not overnight.

❓ Frequently Asked Questions (FAQ)