Trading in the Forex market has become very popular in recent years. But how difficult it is to achieve success in Forex trading arena? Or, let me formulate this question, to reach as many traders consistent profitable results trading the currency markets? Unfortunately, very few reach only 5% of the merchants of that goal. One of the main reasons for this is because the forex is the wrong information, so that their trading decisions, and to forget the main focus by pricing.
Most Forex trading systems are out of technical indicators (moving average (MA) crossover, overbought / oversold conditions in an oscillator, etc.) done, but what are technical indicators? You are just a series of data points in the graph, so these factors are derived from a mathematical formula, the basis of which the price of each currency pair. In other words, the graph is the price displayed in a different way, they see us, other aspects of the price of help.
It is an important consequence of this definition of technical indicators. The fact that the readings obtained from the price action. Take for example a long MA crossover signal, the price has gone up enough for a short MA MA crossover for a long time to create a long beep. Most traders see it as “MA crossover made the price up,” but it happens on the contrary, became the MA crossover signal, as the price rose. When I try to get here is that the end of the pricing will dictate how to act in an ad, and it is noteworthy consideration in any decision to trade.
Trading decisions on technical indicators, price action is acquired without considering us less accurate results. For example, once a long MA crossover signal as the market is approaching important resistance line generates. If the price suddenly gone again, that important level there is no bounce point of view of this signal, price action says the market will not rise. Most of the time, under these circumstances, the market will continue to decline, with the exception of MA crossover.
Do not get me wrong here, technical indicators are a very important part of trading. They help us see certain conditions that would otherwise be difficult to detect to see a pure price action. But if it might trigger, price action incorporation into our Forex trading system will certainly attract the odds in our favor, it will generate higher probability trades.
So how do you create a perfect Forex trading system?
First of all, you need to ensure that the trading system fits your trading personality, otherwise it is difficult to follow him. Each investor has different needs and goals, so there is no system that is perfect for all traders. You have to do research on various trading styles and technical indicators until you find a concept that works perfectly for you. Make sure you know what the nature of the used technical indicator.
Second, the price action to extend the scheme. Thus, only long signals if the market is pricing seems to want to go up, and short signals if the market gives you indication that it goes down.
Third, and most importantly, you need discipline to follow Forex trading system rigorously.Try the demo account first, then move on to a small account and finally when feeling comfortably and consistently profitable system into a normal account.