Simple Forex Trading Method
Simple trading method means to make all aspects of our trading activities are not complicated and easy to apply, but still profit.
Simple trading method means making all aspects of our trading activities is not complicated and easy to implement, ranging from the interpretation of price movements to the way we execute a position. The simplicity factor for consistent long term profit is often overlooked by traders. They are more confident to apply complicated and complex trading methods using various technical indicators, and often accompanied by the use of expensive and varied trading software.
Many traders think by trying several systems in their trading strategy, it will quickly obtain a trading method that can profit consistently, but in this way actually make them experience many losses from time to time that cause frustration. They think that with a trading strategy and the use of a combination of several technical indicators will give the same trading results in every market condition so as to obtain consistent profit. In fact, in the market there is no systematic, forex market conditions are not static and can not be controlled. With the volatility that reflects the emotions and traits of market participants, it is very difficult to predict the direction of change or the movement of the price.
Traders who want to simplify the trading process in the above manner will never get the results as expected. Trading methods will be simple if our idea is not to find a strategy or indicator that can work well in every market condition, but by looking at the market price movement itself . By learning to read the pattern of market price movements will provide a market perspective in trading, and this market perspective will result in a trading method that refers to the movement of market prices when conditions are trending or when the market consolidates. The trading method based on an objective market perspective is a trading system with standard rules and does not involve the emotions of the perpetrators.
World market players such as George Soros, Jesse Livermore and Warren Buffet do not refer to complex trading software or complex indicators and lagging (tend to be slow in anticipating price movements) in the trading system, but based on the dynamics of price movements in every market condition, and applied to all types of their trading instruments, both on the stock market, forex, options and so forth.
Professional traders generally apply simple trading methods. We can apply the price action method which refers to the pattern of price movements in trending or ranging market conditions, and this method is quite simple, effective and relatively easy to use as a reference. The basic concept of this method is by interpreting the pattern of repeated price movements on a periodic basis, rather than by using a complex indicator on the trading chart. The method of trading with price action has been frequently covered in this section. The following illustration is a trading chart with a simple price action setup and a chart with indicators:
If you are looking for an effective and simple way of trading, try to apply a trading strategy with price action combined with support and resistance levels in a demo account for at least 3 months until generating consistent profit before opening a live account.