KISS Forex Strategy, Simple Ways To Be A Successful Trader

KISS Forex Strategy, Simple Ways To Be A Successful Trader

KISS forex strategy is not related to things romantic. Instead, this way of trading will reveal a simple but profitable way of trading.

What first comes to mind when you hear the KISS forex strategy? Before thinking all sorts, know that the KISS here is short for Keep It Simple and Sweet .The concept of forex strategy emphasizes the use of simple trading methods but still “sweet fruit” .

Thus, you do not have to worry about the effect of simplifying the strategy on profit opportunities. Precisely with this kind of forex strategy, you can achieve profit in an easy way, without having to wrestle with the complexity of the analysis. The four main principles in the KISS forex strategy are:

1. Minimize Support Resistance

Recognizing support resistant is necessary, but it should not be excessive in identifying. Many traders feel afraid of placing support resistance because the technique tends to be subjective. As a result, they also draw many horizontal lines and use them as first, second, third, and so on. Itupun not coupled with the levels of resistance that is not less much.

In fact, with just one level of support or resistance alone, you can already get enough understanding to interpret price movements. Examples can be seen in the picture below:

Forex Strategy

The easier a chart is read, the more effective the application of KISS forex strategy. To test it, try asking the help of fellow traders to see your price graph.Ask if the chart is quite easy to understand or just look like a “battlefield”. Also, always remember to “clean up” immediately if you start forgetting to recognize the usefulness of the marked levels on the chart. (This article was written by Galuh for aroundforex.com)

2. Arrange Daily Trading Activity Patterns

Forex trading can be addictive if you are not careful. Watching the chart for hours can keep you obsessed, and ultimately leads to an increase in trading frequency. In fact, instead of helping you capture every opportunity, saturation due to monitor the chart in a long time it can obscure your perception. Once you have a big loss, you will try to stay away from the market and hesitate to re-entry due to trauma.

In order to avoid the hassle of problems due to uncertain trading patterns, it’s best to arrange your daily schedule. Whatever your trading style, be it scalping, day trading , or swing trading, you should set the pattern with careful planning. Trading with unplanned activity patterns, be it for analysis and entry, is just as dangerous as ignoring trading discipline.

Here is one example of a daily schedule, taken from the routine of Dale Woods, a trader at theforexguy.com.

Forex Strategy

Forex Strategy

“As a price action trader I opted for the New York session closing and the London session opening as a time to seek trading opportunities because I live in Australia, the New York trading session ends in the morning, and the London market opens in the afternoon.

Based on the rules, this is my daily trading routine:

  • In the morning, I will monitor the chart to see if there is an important signal in the New York closing session.
  • Throughout the day, I will do another activity and will just re-monitor the price as the London market starts to wriggle.
  • In the afternoon, I scan the market for instructions on what’s happening in the Tokyo session.Specifically, I will look for false breakout signals to find entry opportunities.
  • As per trading ideas, I assume that traders in the London session will push the price down if there is a false break from resistance, or lift the price back up if there is a breakout failure from the support level at the end of Tokyo session.
  • When the price movement has confirmed my analysis, then I will be positioned entry in H4 time frame and set the exit parameters according to risk management. I will only monitor the chart once every 4 hours to see price action changes in time frame entry. “

In conclusion, KISS forex strategy does not recommend traders for a day sitting and constantly stare at the monitor screen. Instead, allocate the best possible trading time to balance it with your daily activities.

3. Elimination of Unnecessary Indicators

The desire to get the best forex strategy is definitely growing in every self trader. It’s natural, but according to reality, searching for “holy grail” will only make you spend time for free. Such actions usually lead a trader to struggle for a sophisticated and often complex system.

Mixed indicators became a natural phenomenon among traders alike. Let’s say you follow the way of trading semacama it, what would you do if one day this happened?

  • Indicator A gives buy signal
  • Indicator B says to sell
  • Indicator C does not even suggest entry at all

To avoid such hassle, remove the indicators that you think are not too important. Instead of combining signals from multiple indicators at once, you can combine indicators with price action analysis.

When using a reversal strategy, consider the various candlestick formations that indicate a reversal. Candle pin bars for example, can identify the reversal of the body shape and length of the axis.

new forex strategy

The chart above shows a pin bar that denotes a bearish reversal. The inversion signal to the downtrend is seen on the candle formation which reflects the closing price lower than the opening level. Meanwhile, the upper axis that indicates the high reach of the high upward range exceeds the size of its body. In addition to indicating the ‘rejection’ sentiment of the price to continue the uptrend, it also indicates a stronger bearish pressure.

Overall, KISS forex strategy recommends that you stay away from trading like a beginner. Most of them are trapped in the use of some indicators, because they feel the need to cover the disability of one indicator with other indicators. In order to avoid the trap, get rid of unnecessary indicators and learn how to interpret candlesticks .

4. Focus On Specific Trading Methodology

Just like choosing an indicator, the trading methodology needs to be filtered as best as possible. Following KISS forex strategy principles that prioritize simplicity, we recommend choosing a methodology that suits your understanding and style . Then apply the simple trading methods of the methodology. For example, if you apply the day trading methodology, then use a simple day trading strategy . If it is compatible with news trading, then run a simple news strategy .

Benefits of KISS Forex Strategy

Many professional traders, such as Toni Turner for example, have revealed that simplification of strategy is one of the most successful tips in trading . But in reality, the guidelines are only understood and approved only, without actually being practiced by most traders. As beginners, they will start with a simple strategy. But not infrequently, for the sake of “developing a profit” or something, traders will be interested in finding and trialing other forex strategies that look complicated and impressive. To be honest, are you a trader like that?

Nothing forbids a trader to explore the best forex strategy. But know that those who are very experienced and have tried various forex trading system, in general will end up frustrated face its own trading. In the end, they will clear the trading chart and get back to basics to implement a simple forex strategy.

Well, for those of you who have not felt such experience, would not it be better to apply KISS forex strategy from the beginning? To be successful as a trader, no need to look for forex or system strategy is so complex that it is difficult to understand. Always prioritize simplicity in each of your steps, because after all, a simple forex strategy will be very useful to save time, effort, thought, and your funds.

author
Forex4Live.com is a forex trading system website that started to be published since 2011 and has been used by thousands of traders around the world. The system is very simple and accurate, priced at $ 167 for a lifetime membership with no monthly fees or hidden fees. Our team created this system by testing thousands of indicators then selecting 23 indicators and combining them into one great trading system.
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