Keeping Things Simple

Filed under: Learn Forex Trading |

Keeping things simple is just about the most difficult thing that a beginner trader can do. It is so often the case that someone new to forex trading will complicate the trading process and layer their charts with all kinds of indicators, trend lines, and information. The reasons that beginners do this is because they think that trading has to be complicated and that they must tax their brain power if they are to succeed. But this is simply not the case. A simple trading methodology and a sound grasp of money management and risk-reward scenarios is what’s required. However, in order to get there, there is probably a process that you must get through.

 

A lot of beginners start by trying to take a short cut and look for a forex system that is being sold by vendors. Some of these systems claim untold riches, and lure people in with the promise of bots that do all the work for you. Unfortunately, most of these systems do not work and you can jump from one system to another, losing money. In fact, the only people who seem to get rich from these bots are the system vendors themselves!

 

The next stage is probably the use of indicators and trying to create your own system that works in all market conditions. While this is a more sensible option, it is very difficult to create such a system and you would have to be very well funded to make it profitable. Another lesson that needs to be learned is money management. Blowing up you bank may not be a bad thing, as it will teach you a valuable lesson and you will never neglect money management ever again.

 

Once you have learned all of these lessons, you will probably try to start and simplify your trading. Price action trading is about as simple as it gets. They often say, especially in the field of math, that simplicity is beautiful. Try trading with price action setups on a naked chart, devoid of indicators. You may find that it is exactly what you have been looking for.

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