Forex Market Myths - Complex Systems Are Better

There seems to be some perverse human characteristic that likes to make easy things difficult. -Warren Buffet

Many, self proclaimed, experts want you to think trading is complicated; their job depends on that. There is a big industry that feeds on peoples fears and ignorance. When trading the forex market the less is more approach is the best one. All your decisions should be based on simple principles.

Knowing what to do on every case is the difference between profit and loss. You should never feel lost while trading. Here are some ideas I want you to consider.

1.- Indicators can't predict the future.

Before taking any position in the market many traders wait for confirmation of the 100 indicators they use. Confirmation of what? Indicators tell us the story of what has already happened not of the future. With price action alone you can have a general idea of what the market has done; and in a clearer way.

2.- Complicated execution.

I have seen this over and over. Some traders use so many indicators in their platforms that they get lost while trading. A good system should be simple and easy to execute. Fake strategies try to hide their flaws behind complicated patterns and indicators. They want you to believe that you failed because you did something wrong.

3.- Lagging execution.

Traders should not underestimate the importance of speed in their execution. You should get in, as fast as you can, when you find a good opportunity; and you must get out, even faster, if the trade goes against you. Complex systems are to slow in their execution. It might be to late to act when they give you the signal.

4.- Consistency.

In my experience you can not trade complex systems with consistency; there are to many variables involved. On the other hand simple strategies can be executed with the precision of a Swiss clock.

I know trading the forex market can be a rewarding occupation; you need no special skills or natural talents to become a successful trader. Anyone with the determination and the right information can learn how to trade. The only thing you need is good mechanical system, sound money management rules, and above all self-discipline.

You could use, the forex market, to complement your salary or as your main source of income. Start-up costs are very low, the schedules are very flexible, the potential profits are very eye-catching.