When people talk about ‘trading the market’, it’s important to remember that they’re generalising things somewhat.
Of course, the stock market is one of the biggest and most popular markets in the world, with a daily trading volume of around $200 billion to $300 billion, but there are many others that are equally, if not more, influential in terms of global impact.
For instance, you have the commodities market, where essential raw materials are traded with a daily volume of around $500 billion. As well as this, there’s the bond market, where investors buy and sell debt instruments, such as government and corporate bonds, and do so at a daily trading volume of around $900 billion.
All of these markets offer something different for investors, and can be readily dipped into with the right trading strategies and risk tolerance – in 2025, especially, online platforms like Exness and analytical technology have been instrumental in creating a more level playing field. One of the markets that has always been reserved for experienced investors and institutions, however, is the Forex market.
The Closed Doors of the Forex Market
Compared to bonds, stocks, and commodities, this market is the largest in the world, with a daily trading volume of over $7 trillion. In line with this, entering into the Forex market as a retailer, an individual, or even an SME has always been difficult, with many taking the ‘safe’ option of the stock market to manage risk.
But there’s every chance this might have changed. With platforms like Exness in mind, formulating the best strategy for Forex is less about having institutional-level resources and more about understanding yourself as a trader.
Whether you’re running a business or just want to diversify your portfolio, the Forex market is steadily becoming more accessible, with smart indicators, real-time analytics, and customisable strategies meaning you can build an approach that works for you. While it’s still a challenging market to enter, there has been a noticeable shift from exclusivity to inclusivity and so, just as you could in any other market, the opportunity is there to start from scratch.
What is Forex Trading?
Before you can do that, however, it’s first important to understand exactly what the Forex market is. Also known as ‘foreign exchange trading’ or ‘FX’ trading, Forex trading is the buying and selling of currencies in the global foreign exchange market.
As mentioned previously, this is the largest and most liquid financial market in the world, where individuals, businesses, and banks exchange currencies to profit from fluctuations in exchange rates. Unlike stock markets, which are tied to physical exchanges and opening hours, the Forex market operates 24 hours a day, five days a week, across major financial centres like New York, Sydney, Tokyo, and London.
This is part of the reason why daily trading volume is so high. Being non-stop, this market provides countless opportunities for traders to enter and exit positions based on real-time economic events, with some of the recent price swings deriving from the volatility of the US dollar – declining approximately 9% against a basket of major currencies – and the European Central Bank’s decision to cut interest rates to 2.25%.
With those price swings in mind, however, it’s important to note that the Forex market is incredibly volatile, which might not be a good thing for those starting from scratch. This is why having a strong, reliable strategy is so important.
Starting From Scratch: Best Strategies
For beginners starting out in Forex trading, it’s crucial to choose strategies that are simple, manageable, and provide clear rules to follow. This is especially true if you’re not able to give the market every hour of your day. With price swings happening so rapidly, it can be easy to feel pressure as a trader, and when you’re overwhelmed, you make wrong decisions.
To get around this, one of the most popular strategies right now is range trading, which involves identifying key support and resistance levels, then buying when prices are low and selling when prices are high.
For markets that are trading sideways without a clear trend – a characteristic often associated with Forex – this strategy can be particularly useful, mainly because it allows traders to capitalise on fluctuations within a defined range. This makes it easier for beginners to identify opportunities, and with clear exit points, it cuts out a lot of the risks that can be particularly cutting for traders who aren’t prepared.
Another strategy to mention is the moving average crossover strategy. This is perhaps the simplest tactic used in Forex right now, relying only on two different moving averages – one of which is short-term, and the other, long-term. When the short-term moving average crosses above the long-term moving average, it’s typically seen as a ‘buy’ signal, while on the flip side – when the short-term moving average crosses below the long-term moving average – it’s seen as an opportunity to sell.
With numerous online platforms offering tools and indicators to help you keep track, this is a great option if you want to avoid over-complicating things. In the Forex market, of course, there’s a lot of noise and opinions, and this strategy will help you filter out that noise, providing a clearer view of each underlying trend as and when it happens.
Conclusion
Other strategies to start from scratch include price action trading, scalping, and trend following, but the one you choose should always come down to your goals for the future and risk tolerance in the present. Even though the Forex market has become more accessible in recent years, that doesn’t mean it’s now risk-averse.
As a trader, you need to understand how much you’re willing to put on the line and – if you choose a strategy like scalping or day trading – make sure you give the market your full attention. There’s every chance you can build a strong portfolio and make the most out of this market, but you’ll need to work hard and focus if you want to make that a reality.
