Forex Trading for Beginners: 3 Profitable Strategies for 2023

Forex trading for beginners can be daunting, and getting lost along the way is easy.

So today I’m going to share with you three of my favorite Forex trading strategies.

But after more than ten years of Forex trading, I still use the three simple trading strategies in this post, so you know they’re good.

But the best part is they’re super easy to learn even if you have no trading experience.

So if you’re reading to learn a few simple Forex trading strategies to make more profit this year, you’ll love today’s blog post.

Let’s dive in!

1) Pin Bar Trading Strategy (Beginner-Friendly)

When it comes to Forex trading for beginners, the pin bar is king.

It’s one of the most profitable forex strategies, but it’s also very beginner-friendly since it’s easy to identify and trade.

forex bullish pin bar at support

Notice how the market came into resistance during a rally but was soon able to break through that resistance.

One of the basic principles of technical analysis is that former resistance becomes new support.

Sure enough the market found support at former resistance and formed a bullish pin bar in the process.

Let’s take a look at a bullish pin bar that formed on the GBPCAD daily chart.

gbpcad bullish pin bars at support

In the chart above, GBPCAD met resistance after an extended move up.

Once the market broke through resistance, it found new support and formed two bullish pin bars.

Shortly after forming these pin bars, the market continued its rally for an additional 370 pips.

For more information on this particular strategy, see the lesson on the Forex pin bar trading strategy.

2) Inside Bar Trading Strategy

Another highly-effective Forex trading strategy for beginners is the inside bar strategy.

Unlike the pin bar, the inside bar is best traded as a continuation pattern. 

This means we want to use a pending order to trade a breakout in the direction of the major trend.

Below is an illustration of an inside bar during a rally.

forex inside bar trading strategy

Notice how the bar preceding the inside bar is much larger in size.

This bar is called the “mother bar” because it completely engulfs the inside bar.

The real magic to this strategy comes after the consolidation period, which is represented by the inside bar, on a break of the mother bar’s range.

Below is an inside bar that formed on the USDJPY daily chart during a strong rally.

usdjpy inside bar during rally

Notice how USDJPY was coming off of a very strong rally when it formed the inside bar on the chart above.

These are the best inside bars to trade because it shows a true consolidation period which often leads to a continuation of the major trend, which in this case is up.

For more on this strategy, see the lesson on the inside bar trading strategy.

3) Forex Breakout Strategy

Forex trading for beginners isn’t easy.

But with the help of the breakout strategy below, you’ll be profiting in no time!

This strategy is different than most of the conventional breakout strategies out there.

Instead of simply trading the actual break of a level, we’re waiting for a pullback and retest before entering.

Another difference here is that we’re only interested in breakouts that occur from a wedge pattern rather than a horizontal level.

Here is an illustration of the Forex breakout strategy.

forex wedge pattern breakout strategy

Notice how the market has worked itself into a terminal wedge, which simply means that the pattern must eventually come to an end.

The opportunity to trade this pattern occurs when the market breaks to either side and then retests the level as new support or resistance.

In the case of the illustration above, the entry would have come on a retest of support-turned-resistance.

Let’s take a look at the same breakout strategy but this time we’ll apply it to a USDJPY 4 hour chart.

forex breakout strategy from a wedge pattern

Notice how in the USDJPY 4 hour chart above, the market touched the upper and lower boundaries of the wedge several times before eventually breaking lower.

As soon as the 4 hour bar closed below support, we could have looked for an entry on a retest of former support, which came just a few hours later.

Although the pin bar trading strategy is my favorite, I have had some of my largest trades using the Forex breakout strategy above.

The market will often react quite aggressively after the breakout occurs, allowing traders to secure a large profit in a relatively short period of time.

Final Words

So there you have it.

Three simple Forex trading strategies for beginners.

These strategies are by far my favorite and for good reason.

If used properly, they can quickly build your trading account into a sizeable amount.

The best part is, they are extremely simple to understand and are therefore easy to incorporate into your trading plan.

Here are a few key points from the lesson:

  • The pin bar trading strategy is best traded as a reversal pattern in the direction of the major trend
  • The inside bar trading strategy is best traded as a continuation pattern
  • The Forex breakout strategy should be traded after a break and retest of either support or resistance
  • All you really need to become profitable trading Forex is two or three great trading strategies

General FAQ

How to start Forex trading for beginners?

When you’re just starting out as a trader, it’s essential to keep things simple. Focus on one or two strategies at a time. That way, you can use the rest of your time and energy working on your patience and discipline.

What are the best Forex trading strategies for beginners?

The pin bar and inside bar are two of my favorite strategies for the beginner. The breakout strategy is another excellent choice.

What is your single best advice for Forex beginners?

Take it slow and don’t think about making money. Work on developing a sound process and stay patient. Do that and the money will follow.

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