I’m writing this article after I talked to one of my traders the other day and she was asking me regarding how to discover high probability trades to profit from the markets.
Forex strategy trading requires you to follow your trading plan, be disciplined, and only trade high probability trades.
Most Pro traders use simple strategies with strict money management to help them achieve their trading goals and profit consistently from Currency trading. In this portion of my Forex strategy trading tips series I’ll be sharing 3 easy methods I use to help me select high probability trades.
Never go against the the Forex market current: Although I actually do use many custom indicators and trading strategies, most of my trading is still based on basic trading principles. I always respect the overall trend and don’t attempt to go against it. I additionally respect strong support and resistance levels since they represent the region where demand and supply meet. The Forex market is bigger than us and even for those who have millions of dollars in your trading account it is just about impossible to ever manipulate the market and make it go your way.
Take advantage of the K.I.S.S Principle: The KISS principle is short for “keep it smooth and simple”. One of the best techniques for getting confused, commit mistakes, and lose money is to apply complicated trading strategies that you don’t really understand. I have already been trading the markets for years and I still only use very basic (but extremely powerful) trading strategies that enable me to generate the type of returns I expect from Forex trading. There is a Forex myth that claims that “complex Forex currency trading systems are better and earn more money than the simple trading systems.” This is not always true. I know some very successful traders who don’t use more than a set moving averages and a MACD indicator to enter the market and make money from it. So don’t forget regardless of the system or strategy you may use remember to keep it simple and running smoothly.
Concentrate on your trading strategy and plan & ignore all the “noise”: The foreign exchange market is full of opportunities. There are millions of Forex robots, indicators, strategies, mentors, signal providers, etc... However, the actual challenge is to filter the good guys from the bad guys and quite often all the noise received from other traders or companies can distract you tremendously.
This happened to me when I first started. When I got started as an Forex trader I was trading with several professional Forex traders who all trade in many different ways. This made discovering my trading personally and my trading style very difficult. Nevertheless, I understood that if I wanted to become a professional trader I was going to need to perform analysis and trade based upon my very own judgment, not someone else’s.
Subsequently, I strongly believe that anybody who aspires to become a profitable trader needs to develop themselves as traders and trade determined by their own personal judgment (even if you use someone else’s trading system, you are the person who must make the system work!).
Over the next few days I will be teaching more Forex strategy trading tips straight out from my Forex trading vault.
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