Simple but profitable trading technique
Are you looking for simple simple forex trading tips that are easiest to make a profit. Here are 5 tips that you can apply in trading:
1. Use Only Necessary Indicators
For the first time learning forex technical analysis and the ins and outs of its signs, you may feel impressed by it all. Since some of the functions described are all required, you don't want to forget a single sign, and end up placing too many tools on the trading chart.
What needs to be understood here, there are many signs that actually have a bad impact on your trading moves.
In fact, many professional traders prefer to use signs that are absolutely necessary. Why? Because each sign has a role and a sign that can be different from the two. So instead of getting a good analysis result, you are confused with signs that are both cross-matched.
So, take one main sign and specify at least 2 additional signs to emphasize it.
You can also use non-indicator technical analysis methods, such as assessing price action, chart patterns or elliot waves. Relying on trading tools such as Fibonacci Retracement lines and Trend Lines is also possible, as long as you understand and can interpret the signals easily.
2. Watch for Higher Timeframes
Trading charts are presented in various time frames. Some are so low as M1 (1 min), some are so high that they reach the Monthly period. In carrying out simple but profitable forex trading steps, make sure not to base on a time frame below H1 (1 hour).
The lower the trading time frame, the faster price movements are recorded for you to analyze.
The same situation is less reliable because there is some noise which often causes false signs. In addition, identification of the main trend is more likely on high time frames.
Therefore, make sure you are free from noise traps on low time frames, if you want to operate through a simple but profitable forex trading method.
3. Execute Option Only if you believe in the signal of the option you believe in
This forex trading step at first glance is easy to do, but in fact it is quite difficult to practice. Emotion is the most important aspect that most of the traders ignore.
So that you are free from various forex trading steps, be sure to always obey the signs to enter trading tips, whatever the conditions.
Whether you have recently suffered a loss or are looking for a good opportunity, do not open a place if entry requirements have not been met. Trading terms are there to help identify the best opportunities.
An open that is not based on an entry sign has very little chance, because at that moment you are simply triggered by emotion to enter the market for no logical reason. Without realizing it, you have become a 'victim' of some big players who are good at exploiting the weaknesses of novice traders.
4. Close setting: stop loss adjusted to finance
In order not to make too many arrangements, you can apply risk management to melee strategies. Here are the things that will ensure a successful trade, whether it ends in profit or otherwise.
No matter how many times you end up making a profit, it won't work if the amount of the profit is less than the loss you suffered when you lost. Risk management is implemented to prevent you from the same condition.
One of the recipes referred to in simple but profitable forex trading steps is the application of a risk/reward ratio of more than 1:1. Here, you can use the benefits of stop loss and take profit.
Stop loss is set based on your risk tolerance limit, while take profit is calculated from the ratio level. For example, let's say you set a risk tolerance limit of 10 pips per spot. With a risk/reward ratio of 1:2, the take profit is set at a distance of 20 pips from the entry level. Easy isn't it?
This simple forex trading step can give you a profit, even if you say where you lost more than the order that ended in profit.
For example, in 10 trades you lose 6 times and profit only 4 times. If calculated, your loss is 60 pips, while the overall profit is 80 pips. With this, you still profit 20 pips even though the amount of recorded loss increases.
5.Always plan your trading schedule and plan
This last guide has an important role although it is often overlooked by traders. If you want to have a long career in the world of forex trading, then keeping a journal cannot be ruled out.
Recording every trading activity is an important step for learning purposes, which needs to be done to improve your skills. History in a trading journal can be used to find mistakes and learn from them, make improvements to a potential forex trading strategy, or change things that are weighing on your profits.
To write a trading journal the steps are very simple. You can note when it is time to execute, whether it is marked and according to the trading plan, and how many achievements you have.
To get more accurate results, you can also use the trading history feature on the base. These tools are usually equipped with performance charts, making it easier for you to monitor trading changes and the level of accumulated profits.
Trading can be done in many ways. In determining the types of tips, techniques and signs, it's good according to your understanding. But if you want to implement an options strategy with a simple but profitable forex trading step plan.