There is a common misconception that trading should only be done by professionals in order to achieve success in this industry. It is difficult to argue with this statement, as it applies to all types of human activity. However, professionals are not born, they become so through the process of learning and experience.
What should a person do if they want to try their hand at trading but do not possess any special knowledge or skills? Endless studying of theory may not necessarily lead to success in this case, as it may lead to losing interest in the new endeavor over time.
Fortunately, the electronic contracts market is the most accessible form of financial exchanges, and even an absolute beginner can start trading in it. This is where the Easy strategy comes in, which is specifically designed for “inexperienced” traders and will be discussed below.
Introduction into the Easy Trading Strategy
It is called Easy for a good reason: strategy is designed for a quick start in the electronic contracts market, that is why it is based on only one indicator – the Moving Average.
It should be pointed out that even though the Easy strategy is considered to be the simplest, it has been used in the stock market since the 1970s and is still widely used today. Furthermore, many professionals consider it to be one of the best indicators for analyzing market conditions. As per usual, Japanese candlesticks are used as the chart for this strategy, and it is recommended to use a 5-minute timeframe for trading. As for the asset, the developers claim that Easy can work on any instrument, even those with low volatility that are often in a sideways market.
When it comes to the choice of the asset for trading, the experts say that Easy works with any asset, even with weak ones with no volatility. It, indeed, works.
Consider that trading is done on a lower timeframe, and traders should tune out “market noise”. If you do not know how to do it, you should use instruments with medium or high volatility. It is recommended to trade during the European and American sessions.
Moving Average is a line that is drawn based on the average price values for a certain period. It is quite reasonably used as a trend line. In this case, the moving average will play exactly this role.
When choosing Moving Average from the menu, you must specify the period, in our case, it will be equal to 9.
How to Trade with Easy?
Trading with Easy system is not a difficult task. As mentioned earlier, the Moving Average serves as a makeshift trend line. Therefore, a trade entry will be executed upon its breach, which signals a change in the current trend – the ideal moment to purchase a contract. It is important to note that an option should not be purchased immediately upon line breakage, but upon the opening of the subsequent candle on the opposite side of the moving average. The breaking bar before its closure can retreat, leading to a “false breakdown”. Responding to such signals is not recommended.
To purchase a CALL option, the price must break through the MA from the bottom up and stay above it.
To purchase a PUT option, the price must break through the MA from the top down and stay below it.
The expiration time must be at least 10 minutes.
The simplicity of the Easy system is both advantage and disadvantage. One should admit it is not the most reliable strategy in the world. In conclusion, trading on the Easy strategy can be a great starting point for beginners who want to try their hand at trading but don’t have extensive knowledge or experience. With its simple and easy-to-use Moving Average indicator, this system can provide a basic understanding of market trends and help traders make informed decisions. However, it is important to keep in mind that no trading strategy is foolproof and there are always risks involved in any kind of investment. Therefore, traders should always exercise caution, manage their risks and be prepared to learn from their mistakes. By following these principles, traders can use the Easy strategy as a stepping stone towards more advanced trading techniques and, with time and practice, potentially achieve success in the exciting world of trading.
Caution! This article is not intended to be investment advice. No strategy can guarantee 100% correct trading results. A successful trading result in the past is not a guarantee that it will be repeated in the future. Any information contained in this article is for informational purposes only.