Beginner To Intermediate Forex Trading Strategies for Binaries

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Beginner To Intermediate Forex Trading Strategies

Trading the Forex market can make you a ton of money, but it can also blow up your bank account in mere months if you mindlessly walk into the field guns blazing. Having a strategy allows a trader to systematically extract profits from the market without incurring heavy losses. Sadly, novice and intermediate traders alike find it difficult, if not impossible, to find a strategy that suits their personality, objectives, and risk profile.

Below are 3 simple strategies anyone can test out, regardless of experience and skill level.

Trend Trading

Basically, you trade when there is an apparent price trend in the market. When using a trend trading approach, try to focus on major currency pairs that are historically known to be less volatile than exotic pairs. EUR/USD, USD/JPY, and NZD/USD are examples of major currencies that exhibit more stable price movements. Exotic pairs like USD/SEK and USD/NOK tend to be more volatile and unpredictable. However, this does not necessarily mean you should neglect current price action of these pairs as they may also present profitable trading opportunities.

When trend trading, use the higher time frame charts to get a better feel of how price is reacting. If you see an overall uptrend or downtrend, switch to the 1-hour or 4-hour chart to look for good entry points and exit targets. Optionally, you can add a moving average indicator to smooth out price action over an X period of time.

News Trading

Economic news reports and press releases are one of the key catalysts that move the Forex market. Weak employment data in the US can send the dollar plummeting to fresh lows while a great reading in dairy production and demand can cause the New Zealand dollar to skyrocket in a manner of minutes. But trading the news can be equally detrimental to your FX account, so be really careful when taking this approach.

Look for a good website that provides real-time news feed. Do not, however, react to the actual numbers released. For instance, if US data turns out to be a big disappointment, don’t just automatically short the US dollar. Instead, stay on the sidelines when the news is released. The first15 minutes after news releases tend to be the most volatile and therefore most dangerous time for a small-time trader like yourself. After 15 minutes have elapsed, time to zoom in on price action and start looking for ideal entry points.

Range Trading

Many experts will tell you that any financial market is ranging 70 percent of the time. By focusing on ranges, a trader is given more actionable opportunities as opposed to waiting for a trend to develop, which could take days if not weeks. Trading ranges should be done in higher time frames to filter out false entry points. The smallest time frame chart you should be looking at is the 1-hour chart. Anything below that will cause you to take more low quality trades, which effectively result in more losses.

Pick a currency pair, then look at the 1-hour or 4-hour price action. Try to find support and resistance points where price repeatedly tried to break but failed and instead bounced back to its opposite direction. Do not expect a clear cut zig-zag as there is no such thing in the FX market. Instead, zoom out of your charts and draw an imaginary line that should connect to at least three points in order to be actionable.

Tips For Trading FX

Having a strategy for trading the FX market is only half of the battle to become a profitable trader. The other half relies on attitude and discipline manifested by solid rules and principles you set for yourself. Identify your risk threshold. How much can you lose per trade or per week before you close out any positions and reevaluate your plan? If you are trading a $1,000 account, avoid risking more than $100 per trade. The advised risk threshold per trade is 3 to 5 percent of your capital. Know that trading is not designed to supplement you full-time. In fact, it won’t even serve as your part-time income source for at least the first 2 years, which is the typical learning curve for most traders.

Recognizing this fact and accepting it takes off the pressure of having to win every trade. Don’t hog information. Stick with what works for you and avoid the need to absorb every other strategy or trading tool out there. This only causes more stress and forces you to take more trades and ultimately more risk than what you planned for. It is normal and prudent to make adjustments to your initial trading approach, but it can backfire if you try to find the holy grail of trading, which is simply nonexistent.

Introduction To Binary Options Training For Intermediate Traders

There comes a point in a trader’s career where the fine aspects of all they have learned from their beginner days of trading no longer applies for a profitable trading strategy. Binary options trading and investments are an evolving industry that requires traders to be on their toes to adapt to the changing market conditions. A trader cannot be content with their existing trading styles to enjoy continued profits, which is why at Binary Trading Academy we have devised a unique and all-encompassing learning course for intermediate traders.

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Our Binary Options course for intermediate traders has more advanced trading concepts and strategies that will help a trader to transition from a beginner to the expert trader category. A fair majority of novice traders fail to accumulate the necessary education and the market exposure to create a difference in their trading. It is seen time and again that a large percentage of binary options traders quit their trading careers, mainly due to the lack of expert assistance and quality guidance. We aim to eliminate the problems faced by beginner and intermediate traders by offering the most comprehensive binary options tutorial for intermediate traders.

Intermediate Level Table Of Contents:

Learning To Set Up Your WorkStation Like A Professional

Once traders transition from the beginner phase to the more advanced phase of their trading careers, traders will notice that they may need to make some extensive changes to their trading environment to create a more professional setting. During your intermediate phase in your trading career, it is not essential for you to invest a large sum of money in trading platforms or infrastructure, but you should be open to the thought of widening your trading horizon. Professional traders are successful due to a number of reasons, but the primary reason why professional traders seem to succeed more than any other traders is due to the fact that they have access to all information they need at their fingertips. Having comprehensive market access helps in cutting down time wasted for accessing multiple resources, and can help in concentrating more on the task at hand.

Setting up a trading environment is not all about upgrading your trading system or investing in accessories, but it also involves the different ways by which traders can set up their charts, choose charting types, add technical/fundamental analysis tools to charts, and customising the trading interface in any way. Some of the concepts outlined in these binary options training session are also useful for beginner traders, especially if they plan on reducing the time required to get thoroughly familiar with the binary options trading industry.

Improving Consistency In Binary Trading With Progressive Technical Analysis

Beginner traders are exposed to tons of trading strategies and technical analysis tools from different sources. There are thousands of online articles and resources that are dedicated to different types of technical analysis tools and concepts. It is natural for beginners to be overwhelmed in their search for the Holy Grail in trading that promises to raise them to the professional trader status in no time. A majority of beginners are also in search for the most profitable trading strategy that will help them to achieve instant riches to live a stress-free lifestyle.

In reality, traders shouldn’t try to adopt every technical analysis or trading strategy that they come across on the market. It may be natural for beginners to experiment with tons of different analytical tools, but as an intermediate trader, you should be reserved in your trading approach. Instead of searching for the Holy Grail trading system, take your time to browse through different strategies and analysis tools to choose a few that you feel suits your trading personality. As we previously mentioned, there are thousands of technical analysis tools available in the market, but you don’t have to choose every single one of them to make consistent profits.

In fact, it may be counterintuitive to use multiple technical analysis tools in a single chart, as it will easily confuse even the most seasoned professional. Expert traders rarely use more than a couple of indicators and charting tools to evaluate the markets, and as an intermediate trader, you should cultivate the same habit, if you are committed to developing your trading career. Our binary options learning academy contains a comprehensive list of the most widely adopted and popular technical analysis tools available in the market, but we point out the pros and cons of each system to help you make an informed choice.

Managing Your Binary Options Trades & Experimenting With Different Options

It is easy for beginner traders to get caught up with the countless assets, options, and expiry times that are available in binary options trading. However, novice traders may not be able to take full advantage of these options, as they lack the necessary skills to profit from these multiple options. This is where an intermediate trader, who has a bit of formal experience in the markets, can use all the available tools in the binary options market to his/her advantage.

Managing binary options trades involve the process of entering and exiting trades as per a fixed or flexible trading strategy. Although some brokers don’t offer all the tools to create a diversified trading strategy, some of the leading binary options trading companies offer numerous ways by which traders are given full freedom to customise their trading experience. Therefore, it is imperative for intermediate and even beginner traders to create a profitable trading strategy by experimenting with the available binary options products, and by choosing a flexible trading system that can be used for a consistently profitable trading future.

Although it is a good approach to experiment with the different binary options products, never commit the mistake of overdoing your experimentation. Take your trading to the next level by implementing some of the more advanced binary options tutorials offered in our academy, and each section is guaranteed to bring you one step closer to being a professional trader.

Analyzing The Influence Of News & Fundamental Factors In Trading

Fundamental factors play a significant role in binary options trading, particularly due to the fast-paced nature of the financial markets. Unlike traditional forms of investing, binary options trades are over within seconds or minutes. Therefore, even the slightest change in fundamental factors can make a significant difference to the outcome of a trade.

As a trader with some form of experience in the binary options market, you might be aware of the massive spikes and dips in the market that may arise due to news events and major economic releases. These fundamental factors have a high relevance in binary options trading, and some traders use these events to a great advantage to enjoy massive profits. Traditional stock and FX traders also use binary options products to hedge their investments against economic events and are proven to mitigate risks against unforeseen market volatilities.

News trading is a risky proposition, and it takes the most experienced and skilled trader to succeed in binary options trading from fundamental factors alone. If you wish to take advantage of market movements that are induced by market or global events, you should certainly take a look at some of our fundamental binary options training materials to help you prepare for fundamental and news trading.

Expert Money Management Tips For Intermediate Traders

Money management is an important concept in the financial markets and is even more important in binary options trading. Money management plays a key role in deciding the trading outcome of investors of all categories, despite their beginner, intermediate, and professional roots. Nevertheless, intermediate traders can benefit from some of the more advanced money management tips used by professional traders, in a bid to push their trading strategies for consistently profitable trading. The Binary Trading Academy offers a vast set of trading tutorials that concentrate on the different aspects of money management, controlling risk, and reducing the capital outflow. Preserving the trading capital is indeed the only way by which traders can ensure guaranteed returns in the binary options markets, despite the volatility.

Who Benefits From Our Intermediate Binary Options Training Program?

Our intermediate learning program is more suitable for traders that have some kind of experience in the markets and regular intermediate investors, but it may also cover some key aspects of trading binary options for expert traders. Binary options education alone is not guaranteed to make an investor profitable in his trading ventures, but it also requires the trader to be honest about their trading prospects. Some intermediate traders may consider themselves as professional traders, even if they are unable to achieve consistent profits. Professional and expert traders are those that have mastered the markets to enjoy consistent revenues from all market conditions.

On the other hand, if you have been on the receiving end of the binary options markets, or if you are finding it difficult to make profits consistently, you should take a moment to refer to all the learning concepts and strategies outlined in our Binary Trading Academy for intermediate traders. Taking a moment to reflect on your trading career can definitely do wonder, and you will thank us for making a difference to your bottom line. Professional traders can also browse through our academy section for beginners and intermediates to refresh their trading memory and to brush up on some trading concepts that they may have long forgotten.

Our innovative binary options training academy is an excellent source for all matters concerning the binary options market. However, if you feel that you need any additional tutorials or informational articles on any core aspects of trading, don’t hesitate to let us know.

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Forex Trading for Beginners: 3 Profitable Strategies for 2020

The Forex market is filled with hundreds of different trading strategies, but what are the best Forex trading strategies for beginners? This is a common question among traders just starting out and for good reason.

It’s often said that a beginning trader is closer to becoming consistent profitable than a trader who has been trading unsuccessfully for years. This is because a beginning trader hasn’t had time to create any bad habits. The trader who has been struggling for years has to not only find what works best for them, but they also have to break any bad habits and put aside negative feelings they may have built up over the years.

But no matter if you’re a beginning trader or you’ve been trading for years, there are a few price action trading strategies that you should always keep in your back pocket. I welcome you to read on and learn three trading strategies that have become staples in my trading plan.

#1 Pin Bar Trading Strategy

When it comes to Forex trading for beginners, the pin bar is king. This is because it’s a very obvious pattern, making it easy to identify on a chart. It’s also one of the easier strategies to 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.


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

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.

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

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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About Justin Bennett

Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He’s been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2020 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students. Read more.

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High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

Best Binary Options Brokers 2020:
  • Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo

    2nd place! Good choice!

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