Hello and welcome to another edition of the bulls vs the bears. Today we are going to learn how to not to make the forex trading process complicated. In in other words we are going to try to keep the trading process simple.
Let me tell you one simple but brutal truth about the forex trade. Naked(Please get your mind out of the gutter) price action data is the way to go go not a fancy programmed indicator. I’m sure some of you are like”You’ve said this so many times. Don’t you get tired?” But it’s the cold reality. The forex ,market is not some static behemoth. It is a very dynamic platform that can change at the speed of light- well, sometimes. Unlike the indicator it is driven by human beings with blood and emotions flowing through their veins. These are characteristics the indicator doesn’t have. It is emotionless and stoic and it cant react to the sudden U-turn of a volatile forex market.
Basically if you want to prosper as a forex trader, just focus on the candlestick patterns on your screen. The market is way too unpredictable to be turned over by a piece of code. It’s like Floyd Mayweather going up against Mike Tyson.
I guess the question is will be:
How Do I Keep It Simple?
Well, the answer is very simple. Look at the price action on your price charts. All the information you need to make your trading decisions is right in front of you. Not only is price action trading an art , it’s also a skill as well. Once you figure this out you will be miles ahead of those struggling traders looking for the hottest gizmo out there. Even worse, they will be hemorrhaging money through these toys while you are ringing the cash register through your profits on the price charts.
Learning how to recognize price patterns on the price charts also helps you makes sense of the forex market. For starters you are able to make sense of the daily movements of the market, be it trending or consolidation. With that in mind you can then create a set of rules devoid of emotion to help you make the right trading decisions.
Let’s take a look at a clean chart and a messy chart – starting with the clean chart
See how clean- cut the data looks? You have both downtrend and uptrend nicely defined. You have the resistance and support spelt out correctly. Even more important you don’t have those fancy indicators crowding out the space on the screen as we are going to find out in the messy chart,
Speaking of which, here comes the messy indicator
Now who wants to deal with this mess. You have all manner of indicators crashing the chart here. It looks like half chart half Atlantic Ocean out here. You can’ tell which is which. Now if I have to deal with this mess on the four hour time frame I’d get a massive headache,
The moral of this story? Just keep it simple.
That’s a wrap for “How Not To Make The Forex Trading Process Complicated.” Hope you now understand that you need to keeps simple when trading on the forex market. and that is relying solely on the price chart patterns on the screen and not some fancy indicator.
If you want to be profitable just stick to Keep It Simple and you will never go wrong. The last thing you want to do is to pull your hair out over indicators that will simply bring you grief. All the information is right in front of you. What else do you need?
Til next time take care.
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