Top trading strategies for beginners 🧠✏️

Entering the world of trading can seem like navigating uncharted and complex territory for newcomers. However, as with any discipline, understanding the right strategies can make the difference between trading with confidence and making impulsive decisions. Learn to apply some of the best trading strategies from day one and practice risk-free with nomo's demo account.

💡 Trend following strategy

Perfect for: Traders aiming to capitalize on prolonged market movement. The principle of this strategy is straightforward: if an asset's price is rising, you buy; if it's falling, you sell. The key is to identify strong trends and trade in their direction. To do this, you can use indicators such as the Moving Average (MA), Average Directional Index (ADX), or Parabolic SA.

Example: If a stock's price is above its 50-day moving average and the ADX is above 25, it's a signal that the upward trend is strong. Using nomo's demo account, you can practice following these trends without risking your money.

💡 Range trading strategy

Perfect for: Markets without a clear direction.

When an asset oscillates between well-defined support and resistance levels, you can buy at the support (lowest point of the range) and sell at the resistance (highest point) To confirm this, tools like the Relative Strength Index (RSI) and Stochastic Oscillator can help you determine if an asset is overbought or oversold.

Example: If an asset's price has touched the support level several times and the RSI is below 30, it's a buy signal. With nomo's demo account, you can easily identify support and resistance levels.

💡 News trading strategy

Perfect for: Those who closely follow economic news.

News can move markets drastically. Events like employment reports, interest rate announcements, or company financial results can create trading opportunities.

Example: If a positive U.S. employment report is expected, you might buy USD before the announcement, anticipating a bullish reaction in the dollar. With nomo, you can practice reacting quickly to economic events using your demo account.

💡 Risk management strategy

Perfect for:  All traders (basic but vial).

The key to success in trading is not only winning but also knowing how to control losses. This is achieved by establishing:

🧐 Stop Loss: A limit where you'll accept a loss before it becomes unmanageable. The common rule is to risk 1% - 2% of total capital per trade.

🧐 Take Profit: A point where you'll secure your profits. Ideally, the risk/reward ratio should be 1:2 or 1:3, meaning risking $1 to gain $2or $3.

🧐 Position Sizing: Calculate your position size based on your allowed risk. This ensures that if a trade goes wrong, you won't lose a significant portion of your capital.

With nomo's demo account, you can fine-tune your risk management strategy before trading with real money.

💡 Technical indicators-based strategy

Perfect for: Those who prefer a data-driven approach based on historical data.

Technical analysis helps predict price movements through patterns and mathematical calculations. Some commonly used indicators are:

📈 RSI: Indicates if an asset is overbought (above 70) or oversold (below 30).

⚠️ MACD: Buy and sell signals based on the crossing of moving averages.

📊 Bollinger Bands: Measure market volatility.
 

Example: If the RSI is at 30 and the MACD crosses upward, you might buy, anticipating a prierebound. nomo allows you to test these tools in real-time in your demo account.

While there's no magic strategy in trading, starting with a clear methodology will give yuan edge. The key lies in practice, discipline, and risk management. We're confident that with nomo's demo account, you can experiment with these strategies without fear of losing money, gaining confidence before trading in the real market.

👉 Grow, learn, and gain control over your money. Start now!