Forex Trading for Beginners: 3 Profitable Strategies for 2023

by Justin Bennett  · 

June 9, 2023

by Justin Bennett  · 

June 9, 2023

by Justin Bennett  · 

June 9, 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.

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.

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.

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.

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.

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.

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.


Continue Learning

25  Comments

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  1. Hello Justin, I like all your articles and I am still learning using demo account(daily chart). I just have 1 question: what is your opinion about long legged doji’s on the daily chart? They seem to be quite effective too. I have noticed, that sometimes it happens we see on all pairs a doji at the same day. Thank you.

    1. Sallam aleikum, Muhammad.

      please, I’m new to investing in Forex, I’d just like you to help me get through this beginner stage…….could you put to me the exact books you read on, or videos you watched that made you this knowledgeable about Forex or if you could take me on the journey yourself if it won’t inconvenient you because there’s a whole lot of materials out there on the internet that I’m just so confused now.

      Regards.

      Love to hear from you soonest

  2. Your vivid article makes my idea clear about trends rejection and trend continuation. Would you please share which time frame is best suited for the candle pattern?

  3. Thank you for sharing the following tips. For those who are new to forex trading I would recommend to start trading in a simulation environment with zero risk (no real money). There are plenty of trading game apps which are good for beginners like Forextream, go forex etc. Good Luck!

  4. Thanks for this wonderful article, you have opened my eyes to so many things.
    Please can someone start with as little as $100 and still survive in forex market and how possible is that? Thanks

  5. Hey Justin! I tried using the Pin bar strategy and it worked like a charm! Thanks to you I’ve been trading successfully for the past week since I’ve read your strategies. I hope there are beginners out there who will read this so that they can save their time and money. This strategy works perfectly with FX Leaders.

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  7. Definitely imagine that that you stated.
    Your favorite reason appeared to be on the internet the easiest thing to understand of.
    I say to you, I definitely get annoyed at the same time as other folks
    consider issues that they just don’t know about. You managed to hit the nail upon the top and defined
    out the whole thing with no need side-effects , other folks could take a signal.
    Will probably be back to get more. Thank you

  8. Hi Justin,

    I really enjoyed your blog post on Forex trading strategies for beginners. I’m a complete beginner myself, so I found your advice on keeping things simple and focusing on one or two strategies at a time to be very helpful. I’m also glad you mentioned the importance of patience and discipline. I know those are two things I’m going to need to work on as I learn more about Forex trading.

    Thanks for sharing your knowledge!

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  11. Justin, you have done a good and wonderful job on this three strategies. It is direct , not complex and boring, you really simplified it.l need you to mentor me on forex, you are a good teacher. Am s newbie on forex but l will scale it today, the next day,l will blow it. I need your help. Thanks

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