The advantages of simplicity when making trading

In our day, in almost every area, we tend to make things more complicated than necessary and this can significantly affect the outcome of our actions, but often do not realize it. In trading something similar happens. There are traders who day and night pass in front of your computer, test hundreds of strategies, follow all the analysis and signals found, loaded few indicators they come up in the graphs of their trading platform, ... Others, however, seek maximum simplicity and try to make a profit with the lowest amount of headaches.

What are the advantages of simplicity when making trading?

1. Simple strategies are easier to follow and optimize

Most beginners begin by studying graphs and incorporate the more indicators trying to get better signal input infallible. The indicators generally give information too late to detect these input signals. Some indicators can be useful to be used as confirmation of another signal that you detected but many can not be helpful and combining them can give us false signals or often contradictory.

Many professional traders use charts only Japanese candles to make their trading decisions. The price represented with those Japanese candles can give you more reliable signs of direction it will take in the future. In this sense you can try to learn to follow the price, locate key support, resistance and strong signals that can show a continuation or a trend change levels.

The more variables you use in your trading system becomes more complex to follow and especially to optimize. If you try a simple system and does not give you good results you can try to modify certain aspects and see if it improves or you can discard it and find another. But if you use a complex system is much more complicated to change anything or identify what is working and what is not you.

2. Enter the market only with strong input signals can help you avoid mistakes

Not usually desirable that try to enter every market movements. More movements do not necessarily equate to more profits but generally more risk and more losses. A common mistake of novice trader is wanting to open many positions to snap up opportunities for profit. If you are disciplined and not enter the market if strong input signal based is given your strategy is easier than you can avoid unnecessary mistakes and losing positions.

Many times you will see that no opportunities arise that meet your requirements for entry. In this case it is preferable to close your trading platform and open it again the next day. You must know how to wait and not autoengañarte that the entry conditions occur when the signal is really is not quite strong.

If when you are analyzing a possible entry opportunity you doubt you see much, think you might be getting into the process of self-deception caused by greed to propel trading. Taking only a few signs of strong input can get more benefits than entering more times in the market wrongly, still note that you will always have to face losing trades is part of the game and you know adequately address both winning trades as the losers.

3. The time frame broader reduce your stress to operate

Forex trading platforms allows you to work with different durations (also known as frame time) is usually from 1 minute to 1 month. Most traders believe that they get more benefit if they worked shorter time frame because usually in more trade opportunities resulting in less time. It is true that there may be more opportunities in this frame, the shorter time but a lot of false signals and short-term market entry has also formed a more random behavior.

4. The permanent control of your positions may be counterproductive

If you have made the decision to enter the market based on a strong input signal and have defined from the moment your stop loss (loss limit) and your take profit (profit target), you should not need to constantly keep an eye your positions. Fear can cause you to close prematurely a position when you see that is not moving in your favor when it is possible that he should make if you gave enough time or else you close a position benefits prematurely for fear of losing without reaching the initial goal.

To learn from your successes and your mistakes you should do your initial analysis and let the position close to reach your profit target or because he jumped the limit of losses that had defined. Thus, whatever the result can analyze it, see if you were wrong or if you're right, if you have properly placed your stop loss and take profit at the correct distance, It is much simpler and yet it is virtually impossible to build and improve your own forex system if you're continually making changes without control.

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