4 Most Profitable Trading Strategies Every Beginner Should Know

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Marleny Huckshttp://MyrtleBeachSC.com
Marlene (or Marleny as she is known in Spanish) is a mentor, teacher, cross-cultural trainer, storyteller, writer, and for those who have been under her leadership or simply sat across the table from her, she is a mirror of destiny. Her love of word and image were formed early on by one of her heroes, Dr. Seuss. If you asked those who know her well, they would describe her a compassionate, funny, wise, curious, honest, real, strong, sensitive and totally human which comes out as she teaches and writes. She sees all of life, even the most mundane, through faith and believes that who we become as we live this side of the veil is what matters not the journey itself or our circumstances. Marleny Hucks has spent her life crossing bridges. She comes from a diverse background of ministry roles and contexts as well as has transitioned in and out of the business world. Having lived outside the country as well as traveled extensively she has a fascination with culture causes her to live her life within a global mosaic no matter where her feet are planted. Marlene currently lives in South Carolina with her husband David, who owns a news company but who she says is a “crime fighter”, bringing light into darkness in their systems of their city. Marleny currently works as a content management specialist covering Myrtle Beach News for MyrtleBeachSC News.

Are you looking to start trading but don’t know where to begin? Or are you a seasoned trader but are looking for new, profitable strategies to add to your arsenal? If so, you’re in luck! In this blog post, we’ll be discussing the four most profitable trading strategies that every beginner should know. So whether you’re just starting or you’re looking for ways to improve your current trading strategy, read on for helpful tips and advice.

1. Trading With Range Bars

Range bars are a type of chart that shows the high and low prices for a given period. This type of chart is especially useful for day traders, as it can help you identify potential entry and exit points. To trade with range bars, you’ll want to look for periods of consolidation followed by a breakout. Once you’ve identified a potential breakout point, you can enter a trade and set your stop-loss and take-profit levels. When range bar trading, you need to understand that the market is constantly in a state of flux and that there will be times when the market doesn’t move as you expect. However, if you stick to your trading plan and discipline yourself to take only high-probability trades, you can be successful with this strategy.

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2. Trading With Candlesticks

Candlestick charts are a type of chart that show the open, high, low, and close prices for a given period. They are called candlesticks because they look like candles, with the body of the candle representing the opening and closing prices and the wicks representing the high and low prices. Candlestick charts are useful for traders because they can provide valuable information about market sentiment. For example, if a candlestick has a long body and a small wick, this shows that the market is bullish and that prices are closing near the high. Conversely, if a candlestick has a small body and a long wick, this shows that the market is bearish and that prices are closing near the low. Candlesticks can also be used to form patterns, which can give traders an indication of where the market might be headed next.

3. Trading With Fibonacci Retracements

Fibonacci retracements are technical analysis tools that can be used to identify potential support and resistance levels. Fibonacci retracements are based on the Fibonacci sequence, which is a series of numbers where each number is the sum of the two previous numbers. The most important Fibonacci ratios are 23.6%, 38.2%, and 61.8%. These ratios can be used to identify potential support and resistance levels by drawing horizontal lines on a chart at the corresponding Fibonacci ratios. For example, if a stock is trading at $100 and falls to $95, this represents a 5% decline. If we then draw a horizontal line at the 23.6% Fibonacci retracement level, which would be at $97.30, this could act as a potential support level. 

Similarly, if the stock rallies from $95 to $105, this represents a 10% increase. If we then draw a horizontal line at the 38.2% Fibonacci retracement level, which would be at $102.60, this could act as a potential resistance level. Trading with Fibonacci retracements can be a profitable strategy if you can correctly identify potential support and resistance levels.

4. Trading With Pivot Points

Pivot points are technical analysis tools that are used to identify potential support and resistance levels. Pivot points are calculated using the high, low, and close prices from the previous period. There are several different types of pivot points, but the most commonly used are the standard, Fibonacci, Woodie’s, and Camarilla pivot points. Each type of pivot point is calculated slightly differently, but they all provide traders with potential support and resistance levels. 

To trade with pivot points, you’ll want to look for periods of consolidation followed by a breakout. Once you’ve identified a potential breakout point, you can enter a trade and set your stop-loss and take-profit levels. When trading with pivot points, it’s important to understand that the market is constantly in a state of flux and that there will be times when the market doesn’t move as you expect. However, if you stick to your trading plan and discipline yourself to take only high-probability trades, you can be successful with this strategy.

These are four profitable trading strategies that every beginner should know. While there are many other strategies out there, these four provide a solid foundation on which to build your trading career. If you’re new to trading, it’s important to remember that success doesn’t come overnight. It takes time, patience, and discipline to become a successful trader. But if you’re willing to put in the work, you can be successful with any of these strategies.

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