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🎯 Strategy and practice · Intermediate · 11 min read · Lesson 26 of 42 · Free with an account

Trading strategies for beginners: trend following, breakout, range and more

A strategy is a set of rules: when to enter, where the stop goes, where to take profit and how much to risk. There is no single best strategy. There is a strategy you understand, have tested and can follow.

Five classic strategies

StrategyIdeaWorks best whenWeak when
Trend followingBuy strength, sell weaknessMarkets trend stronglyChoppy sideways markets
Pullback in a trendJoin a trend after a dip to supportClear trend with regular dipsTrend is ending
BreakoutEnter when price breaks a range or levelNews or volatility expandsFalse breakouts in quiet markets
Range tradingBuy support, sell resistanceMarkets move sidewaysStrong trends
Carry tradeHold the higher-yielding currency to earn swapCalm markets, stable ratesRisk-off panics
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Questions people ask

What is the most profitable trading strategy?

There is no universal answer. Profitability depends on the market, the period, costs and how consistently you follow the rules. Test before you trust.

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Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.