Albert Einstein once said things should be made simple and not simpler. It is applicable to trading. It is often overlooked aspect of trading especially forex trading.
Trading need not be complex. In fact it should be so simple that any layman should be able to understand it easily. We as humans have a tendency to turn simple things into complex creatures.
Guest post by FXBuild.com
Trading Is an Art
Many novice traders don’t recognize the fact that trading is an art. It is their ignorance which leads them towards finding a holy grail. Market is not a machine which can make you money when you use a particular complex model. Do you believe a market with a daily volume of more than one trillion dollars can be programmed into some kind of system? Many marketing gimmicks will be smart enough to make you believe that. So next time you get an email of sharing the best indicator with you, just hit the delete button. If you are a beginner, you will do a lot better if you understand the fact that trading is an art where you need to make discretionary decisions. It is not a rocket science.
Trading is for Average Joe
In fact it is in your advantage to know the fact that anyone can trade if you head in the right direction. You don’t need an MBA from an Ivy League college. You also don’t need fancy indicators in your arsenal to make a living out of trading. You don’t need to be wizard of economics and finance. Of course a sound knowledge of finance is useful. But it is not a prerequisite. All you need is the ability to read the naked charts based on the price.
Learn Price Action
Reading price action charts is not as difficult as it may sound. You can find variety of sources on the Internet. It is all in the public domain. Price action is the most basic thing in the forex world. It is very simple and easy to learn. Market is created by humans and they effectively run it. Price action shows you how the price has behaved based on the participants involved in the market. Majority of the failed traders take a wrong turn when they start trading. A simple trading strategy of reading the naked charts will alone make you a successful trader.
Stop Looking for Holy Grail
There is no such thing as Holy Grail in the forex world. No system works fine all the time. Stop looking for the best system because there isn’t one. Indicators are lagging so you will not make money by using them. But if you use the indicators as a tool to complement your perception based on the price action, you will avoid lot of losing trades.
Many times the obvious things are overlooked by majority of the people. If you observe the successful traders, all of them have one thing in common. They all follow the simple trading strategy. A simple price action strategy along with patience and discipline will make a killing for you in trading.Get the 5 most predictable currency pairs