Two of the most useful and true Forex trading tips are the following: learn to trade with simple Forex strategies, and manage them well. If you can do these two things, you will be far ahead of the masses of Forex traders who over-complicate their trading strategies and mismanage them. You see, it’s not enough to just have a simple and effective Forex trading strategy. You need to use effective and simple Forex strategies
AND learn how to manage them properly. The most accurate trading strategy or system in the world can easily fail to make money over the long-run if the trader who is executing it fails to manage the trades properly. So, one could say that the MOST important aspect to successful long-term Forex trading, is proper trade management.
• The REAL value of simplicity…
While it IS true that you really must understand how to manage your Forex trades properly, there is real value in trading with simple Forex trading strategies. One of the best ways to trade is to simply strip your chart of all unnecessary and confusing lagging indicators. Learn to tread the natural price action that occurs on your chart, unencumbered by foggy over-lays that are simply one more variable open to interpretation. There is real truth in the “less is more” mentality as it applies to Forex trading. Obviously, you must acquire a certain level of trading skill and knowledge, but there is a point where you can actually hurt your trading results by being too involved.
What many traders who get caught up with looking at and interpreting lagging indicators fail to realize, is that indicators are just another representation of price movement, albeit in a more vague and mysterious format than just plain old price action. So, by learning to trade with simple price action Forex trading strategies, the aspiring trader can forego all the confusion and over complicatedness of lagging indicators, trading software, and the like. Also, price action trading lends itself much more easily to managing trades successfully. Meaning, it’s a lot easier to manage your trades when you aren’t trying to decipher eight million colors and lines all strewn about on your price chart.
• Forex trade management is key…
The key ingredient to long-term Forex trading success is proper management of your trades. Most traders end up “screwing up” their trades by meddling in them after they are live. This means, they do things to their trades out of emotional impulse instead of pre-planned logic. The most effective and practical way to overcome this problem of trade over-involvement, is to simply pre plan as much of your trade as possible. In this way, you are basically pre-managing your trade, BEFORE it goes live, rather than trying to micro-manage it on a whim as the market action is unfolding. So, the most important aspect to successful Forex trade management is simply to do as much of your planning as possible before you are in the market. This is the best way to avoid the emotional trading errors that plague so many traders.
Forex Trading Tips – Use Simple Forex Trading Strategies and Manage Them Well
