I don’t want to say that fall in love with
trading and leave everything away. I have always being hearing this thing “Keep
it Simple silly”. It is more of an opinion based on the personal experience I
have in Forex Trading. You have got a number of indicators analysis advisors
etc. around you in this trading world but, too many wires can confuse you which
one to cut for diffusing the bomb. Similarly in forex trading too many
indicators and analysis will make it more difficult for you to decide on what
trade to enter especially for a new trader.
When I started trading I learnt about
almost all the major technical indicators which the other traders were using. I
had all those Moving Averages plotted on my chart, Bollinger bands, MACD,
stochastics, Fibonacci etc. And beyond these indicators I used to analyse the
chart patterns see what the news channels have to say about the country’s
economy.
But the things I used in the analysis the
difficult it got for me to decide a trade and I used to miss a lot of opportunities
in this giant market. Then I realised that I won’t be able to trade in this
way. I limited the use of technical indicators on my charts. As the prices of
the currencies depend on the economy of the country so, I started watching onto
the economic status of various countries and their relation to each other. This
helped me in earning a 200 pip profit in the last week only using the support
and resistance analysis and the news.
This is how keeping it simple worked for
me. I won’t say that everyone should follow it because each one of us has a
different personality which also designs our trading style. I just want to say,
find out what works best for you and use that to win.
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