76. 5-3-1: A Trading Strategy for Beginners

The Forex market is the most active financial market, trading over 7.5 trillion USD per day. Given the level of activity and volatility in this market, a well-planned trading strategy is required to make the most of these opportunities. However, building such a strategy can be challenging for beginners.

The 5-3-1 forex trading technique simplifies that. It helps traders develop a clear trading plan for the forex market. Unlike other techniques that focus on trading mechanisms, chart patterns, and indicators, the 5-3-1 technique allows traders to narrow down the Forex pairs they would like to trade, the trading strategies they want to use, and choose a time of the day to trade.

In this episode, Alison and Chris outline how to define which currency pairs you should choose, how to choose trading strategies that suit your risk appetite and trading style, and how to figure out which time of the day will create the best trading opportunities.

Links as promised in this episode:

https://youtu.be/ZLWvIA-4-O4

https://youtu.be/040sujxN7IE

https://open.spotify.com/episode/4T895k6O7bV3cNVFRjTSDV?si=245bbcab0f774f1f

 

DISCLAIMER:

75-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. Any information discussed here is solely for educational and informational purposes and should not be considered tax, legal or investment advice.