The first point to make is that you must have a simple system, complex systems serve no purpose other than to confuse, it’s a case of too many cooks spoil the broth. When you have a complex system you will be looking at the system more than the market and that’s what you must always keep your focus on, no indicator is of use unless you understand what’s going on in the market. To understand the market you must use support and resistance levels, this is the key to the forex market, the price will always revolve around previous support and resistance levels.
Forex Trading Is Easy.
The paradox of forex trading is that’s it’s easy to learn but hard to make money from, you will be better off spending more of your time on dealing with your psychology, this is what will stop you making a profit. Traders underestimate what it will take to be a successful trader, you need to have a strategy, you need to execute it, you need to reduce your losses, you need to take more profit, you need to be disciplined and patient. One thing that makes it hard is that you don’t know how much discipline is needed, how it could take days to wait for a trade that makes 30 PIPS, you tend to think ok, that’s no problem, but you wait a couple of days and you just aren’t sure what the market is doing, but it gets to you, will you actually hold out? You have a system, it’s quite simple, but you need to execute it properly, a string of 5 losses might be quite acceptable for the strategy, but can you accept that and continue to trade it in the knowledge that a string of wins will come. When things aren’t going too well, are you going to tweak it, will you improve the strategy or will you mess it up?
So the most important aspect of your trading is the psychology, you need to learn about it, practice it, there is a vast amount of material on forex psychology, it is worth looking at the videos and reading all the textbooks to help you get to grips with it. If you want to be able to ‘learn’ forex quickly to make money from it, focus on the psychology, the market will either go up or down it’s not hard there is only 2 things it will do, the complexity arises between the how much it will go up or down and your psychology.