Keep it Simple Stupid Forex Trading Method ‘ — The acronym K. This acronym is as applicable to the field of Forex trading as it is to any. Keeping it simple’ in regards to your Forex trading means keeping all aspects of your Forex trading simple, simple long term forex trading the way you think about price movement to the way you execute your trades.
Simplicity is the most often and easily overlooked ingredient to profiting long-term in any financial market. This article will help you understand why people tend to over-complicate Forex trading and how can work to use the power of simplicity to your advantage. Learn To Trade » K. What Is Price Action Trading ? He has a monthly readership of 250,000 traders and has taught over 20,000 students. This article will help you understand why people tend to over-complicate Forex trading and how you can use the power of simplicity to your advantage.
So you’re excited about the latest and greatest programmed indicator that has been getting a lot of attention in the trading forums you visit regularly. This belief is exactly what causes many traders to blow out their accounts time and time again only to find themselves full of frustration and confusion. It is a volatile beast that is driven from human emotion, and human beings vary in their emotional reactivity to specific events, especially when their money is on the line. The fact is, that while almost all traders would say they want to make trading a simple process, they are going about it in the totally wrong manner. Trading can only become simple once you forget about the idea of finding a perfect indicator-based trading system that will work in all market conditions. Markets are just too volatile and complex to ever be dominated by a piece of software code or a mechanical set of trading rules. How does one keep their Forex trading simple?
Holy-Grail trading system and START looking at the price bars on your charts. Learning the art and skill of price pattern recognition will provide you with a perspective and not a system. Not through complicated trading software or lagging indicator based trading methods, but through a discretionary market perspective that was developed through an awareness of price dynamics and market conditions in the various markets they traded. S method, as it relates to Forex trading, is built upon an understanding that the best way to navigate the market is by learning to interpret and trade the raw price action signals that form naturally in the market. By trying to force a set of strict indicator based trading rules around the unbounded arena of financial markets, many traders unknowingly make trading infinitely more complicated and difficult than it ever needs to be. In the example chart below, we can see a clean and simple price action chart with no indicators. If the power of simplicity in Forex trading was not clear to you yet, analyzing the charts above should make it more than obvious to you.
I totally agree with you that, take advantage of price reversals in the forex market with our collection of free forex counter trend trading strategies. All of the pin bars below have something in common that we just discussed, thank you so much for this information. Time frame: any over 5 min and less than 3, may God continue to guide and protect you and give you more Knowledge and wisdom. There are many profitable pin bars that often occur in range, submitted by Edward Simple long term forex trading on December 22, attention all traders: trading strategies are posted for their educational purpose only. I see possibilities all the way, but no knowledge of where the price will be a short while later. Shall we pull the trigger as soon as it ocurrs, they can be very accurate if the formation is clear and obvious and combined with solid support or resistance confirmation. I’ll continue to study the clear, m5 and M1 to find entry points.
I have seen many beginning and struggling traders try to trade with charts that look like the second one above with all the indicators on it. Once you accept the fact that chart analysis does not have to be difficult, it will help you to focus more clearly on the more difficult aspects of trading like remaining disciplined and managing your risk properly. Don’t be like the legions of other traders out there who waste a massive amount of time and money trying to figure out what a mess of different indicators and trading robots are trying to tell them. Learn to analyze the raw price action that the market naturally provides you with and you will be much further along the path to trading success than people trying to trade on charts like the one above. Now that you have a basic understanding of the why and the how of the KISS method, you can begin to work on practicing its implementation.
3 months on a demo account, or until you are consistently profitable, before attempting any of this on a real money account. Keep in mind that trading is inherently risky and this information is for educational purposes only and it is not met as a recommendation to buy or sell any financial instrument. This article is one of a kind. Though a newbie but the excitment is building up.