There are many forex strategies that traders can practice before ever getting started with actual money. These are well-developed tested systems that have been put together by professionals in the field. For those who really want to learn how to be successful forex traders, these are the fundamentals
Trend Following Strategy
This is a simple strategy that involves identifying when prices are headed up or down. This trend following strategy is based on the premise that once a trend happens, it's unlikely to change. When a specific price move happens, that's a signal for traders to make their move. The trader analyzes the market and after some practice, he learns the trading system and is in a better position to spot the signs. The key is to get in early, hold position until the trend reverses. Because it's such an ever-changing, liquid environment, investors are able to move cash around quickly, especially once they learn how to spot the trends and figure out what's going to happen. This type of strategy generates more losing trades than winning so it's best to not bet more than your willing to part with.
Moving Average System
In order to fully participate in this system, you have to know how to read and analyze charts. The basic idea is that you look at a shorter trend average, like a five-day analysis and compare it to a longer 20-day average. If you realize the speed and moment when the shorter trend overtakes the longer term line on the graph, that's the moment to make your move to either buy or hold until your goal is reached. This trend requires a lot of testing between different time periods to get an idea of the best average combination and minimize false signals known as whipsaws.
This is considered the easiest system to develop and most susceptible to missed marks. It's says that new highs and lows indicate continuing trends. For example, if the closing price exceeds the high price over the past few days, the system determines the exact number of days, then the system will indicate to close all shorts an open a long position. If the day's close is below the previous days' prices, then traders are indicated to do the opposite, close long and open short. Through practice and honing their judgment, traders can reap success using this system.
These are commonly used Forex strategies because they have been tested and proven to work. The key here is to use these basics to develop and master your own system for success.