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Why you should keep your trading simple
Written by: PaxForex analytics dept - Thursday, 15 October 2015 0 comments
It is no big secret that you need to have an objective and calm mindset when trading the forex market, yet many traders make achieving such a mindset very difficult by using confusing and complicated trading methods. A simple method keeps your mind clear and allows you to focus your conscious mind on managing your emotions and maintaining discipline rather than trying to decipher a confusing mess of lagging indicators all over your charts.
Forex traders tend to overcomplicate things when they’re starting out in the forex market, often feeling that a complex trading strategy with many moving parts must be better when they should focus on keeping things as simple as possible. As a trader progresses through the years, they often come to the revelation that the system with the highest level of simplicity is often best. Trading with a simple strategy allows for quick reactions and less stress.
People naturally assume that becoming a consistently profitable trader must be difficult because success in most other fields is difficult, requiring years of study and schooling. This causes them to over-complicate something
which really is technically very easy and does not need to be approached from a complicated perspective. Because of the fact that the biggest part of becoming a successful forex trader is dependent on the trading psychology and consistent self-discipline.
The analysis tools give you no advantage over the trader who has mastered the unique type of self-discipline. Professional traders typically use simple chart reading skills that require only a naked price chart and a thorough understanding of forex price dynamics. This is known as price action trading, and once you learn how to trade just a couple effective yet very simple price action setups, you can literally become a stress free and consistently profitable trader.
A simple forex trading system is to buy low, sell high, protect your-self with a reasonable stop and be patient. You may be thinking that you will find something that seems easier, but this is the bottom line way to win. You can apply it to a short term range, or a long term range, either way; this is what trading forex is all about. Ignore the hype and use non emotional logic, and you will survive to trade another day.