Discover the best prop firm trading strategies for beginner traders. With multiple trading strategies available, beginners must select an approach that aligns with personal experience, risk tolerance, and overall funding goals. Ultimately, the right strategy can help navigate forex trends, identify entry/exit points, and maximize profits with funded capital. The best proprietary firms for beginners always encourage new clients to select a manageable strategy, practice thoroughly, and limit risk exposure to maintain consistency.
As a beginner looking to trade bigger, take your time to identify your personal style and choose the right strategy accordingly. Based on your risk tolerance, you may choose to capitalize on quick short-term gains to hold positions for months to accumulate profits over time.
>> Funding Traders is one of the best FTMO alternatives – accepting a wide variety of strategies on challenge & funded accounts. Employ your preferred strategies to pass one-step or two-step funded challenges and start trading with real capital right away.
Read on for proven forex trading strategies to succeed as a new trader.
Risk-Focused News Trading
News trading is one of the top prop firm strategies for beginners. Many beginners capitalize on short-term opportunities during significant news events to get a funded trading account online. Since news trading requires placing trades during volatile conditions, beginners must select the right exit points to limit risk exposure. For instance, use appropriate stop losses, take profits, and well-calculated position sizes to limit unexpected losses during major news events – including economic releases, election results, or national policies.
>> As one of the prop firms that allows news trading, FT encourages new, experienced, and seasoned traders to diversify trades, leverage stop losses, and leverage consistent position sizing to earn bigger – while limiting risk exposure.
To practice risk mitigation with news trading, you should also separate emotions from your decisions. This way, you can identify the most optimal trade setups, capitalize on short-term movements, and avoid significant losses. Indeed, employ news trading with strict risk management to earn strategic profits as a beginner.
Trend Following
Trend following is another reliable prop firm trading strategy for beginners. With trend following, new traders like yourself first examine the historical performance of a currency pair to identify frequent industry trends. These trends help make buying/selling decisions in the current market conditions to capitalize on profitable movements. While following trends, you’ll set benchmarks based on historical market analysis and identify potential entry/exit points.
>> As you buy a prop firm challenge at FT, take advantage of our supported trading platforms to analyze previous market data, identify trends, and make strategic decisions.
Keep in mind trend following strategies require trading during volatile market conditions. To limit your losses in the beginning, use conservative, well-defined, and strong prop trading risk management strategies. Definitely, begin your forex trading career with trend-following prop firm strategies to maximize success.
Swing Trading
Swing trading is one of the most popular beginner-friendly prop firm strategies. Compared to short-term strategies, swing trading allows beginners to capture profits on broader market trends. Typically, traders hold positions for a few days, weeks, or overnight with a goal of accumulating profits over time. Instead of chasing quick profits, swing traders perform technical & fundamental analysis to identify steady long-term trends.
>> FT allows traders to open positions overnight & over the weekend to keep their trades open for a longer duration and increase overall profits gradually.
If you prefer swing trading, join prop firms with no time limit for more time to analyze market data and identify suitable entry/exit points. Indeed, join swing trading prop firms to strategically capitalize on long-term price movements.
Short-Interval Scalping
Many beginners also prefer short-interval scalping as their prop firm trading strategy to pass funded account challenges. Notably, scalping is an equally popular trading strategy among beginners, experienced, and seasoned clients. With scalping, your goal is to capitalize on short-term price fluctuations throughout the day – ranging between a few seconds to a few hours.
>> As one of the trusted low price prop trading firms, FT offers the cheapest funded accounts to aspiring scalpers. You can buy multiple challenge accounts, test your scalping strategies, and learn to acquire short-term profits.ย
Since scalping accumulates profits from the smallest price movements, you must acquire precise timing, quick decision-making, and risk control. Ultimately, risk mitigation, consistency, and a disciplined approach will help maximize profits as a new scalper. Certainly, the best prop firms for scalpers accept short-term forex trading strategies for beginners.
Prop Tip: Backtest & Forward-Test Your Trading Strategies
Before employing new prop firm trading strategies, beginners are always encouraged to perform back-and-forward testing. By back-testing new strategies, you can identify the win/loss ratio, potential risk factors, and areas of improvement. If you’re looking to pass a prop firm challenge faster, test your selected strategies in various simulated market conditions. Based on the backtesting results, refine your selected strategies to achieve a consistent risk-reward ratio.
Once backtested, leverage prop firm free trial accounts to forward-test your strategy and validate its profitability in real-time conditions. Definitely, leverage backtesting & forward-testing to choose the best prop firm strategies for new traders.
There are several reliable prop firm trading strategies for beginners. Many new traders prefer news trading to capitalize on global economic events that trigger market fluctuations. If you’re getting started with prop firms, you may also prefer trend following to earn profits with a risk-focused strategy. In addition, swing trading and scalping are common forex trading strategies among beginners too. Of course, always backtest & forward-test your trading strategies to identify areas of improvement, calculate the risk-to-reward ratio, and make refinements accordingly. Ready with a prop trading strategy? Click here to begin for forex funding journey with a legitimate forex prop firm.