Tuesday, April 24, 2012

Is Sophisticated Forex Strategy Always Better?

April 24, 2010 by  
Filed under Forex Tips

Many times, I have heard people saying something like this. “This trading strategy is too simple, how can it be making money?”

In fact, this is what I think when I first started trading forex. I was always looking for sophisticated trading strategy as I always have the thinking that a system that I dun understand must be a good one. Ironically, this is the same strategy that wiped out my account.

If you have been following some forex gurus, you will find that they are trading with pretty simple strategy with at most 2 indicators. Are you one of those traders who clutter your computer monitor with indicators that you hardly can see the price movement?

I hope that this post can debunk the myth that a good trading strategy must be one that is complicated with a lot of indicators.

More often than not, a good trading system is usually a simple one. But in order to profit from it, it requires you to be able to trade with full discipline. There are always time where you are tempted to enter into a trade even when there is no setup according to your plan and this is what really kills your account.

It is not how complicated or how many indicators you use that determine your trading success. It is the mindset and your psychology that really makes or breaks your trading career.

Here is an advice to all of you reading this post. If you ever want to make money from trading forex be it as a full time trader or making extra income to pay your bill. You have to bear in mind that a strategy that you understand and easy to execute is always more profitable than one that is hard to trade with.

I will be adding more post on the psychology behind a successful trader so that you can learn and put those thinking into your trading.

Other Related Posts:

  1. What Is The Best Forex Trading Strategy?

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