Are you a beginner? Use the Simple Forex Strategy
Are you a newcomer to the forex world? Don’t worry or worry about plunging and exploring this world. As a beginner, you may encounter some obstacles. That is natural. Obstacles that are often faced by novice traders usually are determining the most suitable forex strategy and of course easy to apply.
Beginner traders who in fact are still lacking in knowledge and experience in the forex world should use a simple strategy. Even great traders who have eaten a lot of salt in this field also apply a few simple forex strategies.
” Simplicity is the ultimate sophistication ,” Leonardo da Vinci said. This quote has a very deep meaning. How can simplicity be a luxury, maybe that sentence is in the minds of people who hear it. The application of this advice to a trader that is to achieve success or profit in trading does not have to use a complicated and complicated forex strategy .
The advantages of a simple forex strategy is that it facilitates the trading process so that a trader can maintain mental and emotional stability. A simple forex strategy does not make traders confused, thus minimizing the occurrence of mistakes made by traders. In addition, a simple strategy does not make a trader trapped in a complicated analysis that can cause traders to miss valuable moments.
Before trading, a trader should determine what target he wants to achieve, then determine the level of risk that he can bear, focus on one of the forex products, apply a strategy that matches his character, and the last hold fast to the trading plan that has been made from the beginning . Confidence in yourself and discipline in implementing the plan that has been prepared is very decisive, do not let because of unstable emotions cause you to get out of the original plan.
3M (Mind, Method, Money)
Mind is closely related to your mental and character conditions. Are you an aggressive person and quickly reacts with the ups and downs of market conditions or are you a calm person and patiently waiting for the right time. What needs to be considered is not to let a trader trade when emotions are overflowing because they will have a bad impact. The character of a trader is what determines what the end of the forex trading will be like.
The method in question is the forex strategy that traders use. Like the previous explanation, the mind and method are very closely related.Forex strategy can be based on several things, namely fundamental analysis (based on the conditions of the world economy and politics) and technical analysis (based on the graph of price movements). The combination of these two analyzes can form the right strategy.
We recommend using a simple technical analysis, just use some concepts and indicators. For example, use the trendline concept to see the current price trend whether bullish or rising. Then combined with several indicators to confirm the trend that is happening. For example the trend indicator uses Moving Average, then the oscillator indicator uses the Stochastic Oscillator and Commodity Channel Index (CCI). The indicator is a reinforcement of the trendline concept so that we can determine buy or sell positions. Actually there are many kinds of indicators that can be used. However, a simple forex strategy that uses indicators that are quite highly recommended.
Money here includes the capital you have and how you use it more precisely money management and risk management. Both of these management aims at processing your funds to maximize profits and minimize the risk of loss. Surely a trader trades with as much profit as possible. However, you must not be greedy for what you mean to be realistic with the capital you have and the conditions of price movements at that time. Therefore, you can set a profit target of a percentage of your capital and a percentage of the risk of loss that you can bear. The forex strategy that you have based on your character and analysis results will be more stable if combined with money and risk management to determine the right time for entry and exit.
By learning all the exposures of theories about forex strategies that are at length, it is not useful if you do not try to apply them. How much better if you try direct trading practices so you can feel the sensation and atmosphere in the real market according to the slogan Learning by Doing. You do not need to worry and fear if you do not have enough capital because you can learn through a demo account and everything is free without any fees, just by using the internet you can access anywhere.
Hopefully this article is useful for all, especially newcomers. Happy trading.