The strategy that a trader should start with depends on their trading goals, experience, and risk tolerance. There are several strategies to choose from, including trend-following, range trading, breakout trading, and swing trading.
For beginners, it may be best to start with a simple and easy-to-follow strategy, such as a trend-following strategy. This strategy involves identifying the direction of the trend and entering trades in the same direction as the trend. This can be done by using technical indicators such as moving averages or trendlines to identify the trend direction.
Another good strategy for beginners is swing trading. Swing trading involves holding positions for a few days to a few weeks, taking advantage of short-term price fluctuations in the market. This strategy may be less risky than day trading, as it allows for more time to analyze the market and make informed trading decisions.
Regardless of the strategy chosen, it's important to practice proper risk management and use stop-loss orders to limit potential losses. Traders should also have a clear understanding of their trading goals, entry and exit points, and risk-reward ratio before placing any trades. Additionally, it's important to constantly evaluate and adjust the strategy based on market conditions and performance.