Most of you would be guilty to having lousy strategies on your first few months. You may have picked your strategies online and then tried it. However, you may have noticed that no matter what strategy you use there are typically three things in common which are stochastic oscillator, MACD, and momentum indicator. All of these are necessary for you to do your trades. When these elements match in a downward manner above the chart you most likely take Put. One the contrary, when they match an upward direction at charts bottom part, you will likely take Call. At some points of your amateur trading life, you may not have paid any attention to the real price chart due to the fact that you simply do not how to read it. Naturally, such scheme was no just inefficient but also very off base towards getting obvious insights on how the market functions.
Trading is not a simple task. In order to do it properly, you have to be knowledgeable about its market dynamics. Nonetheless, you do not have to look for some complex strategies and articles to fully understand it. There are some simple ones that easily allow you and a seller to interact to have a price movement. You can also have an overall strategy that is simply based on market resistance and support levels. You may also consider market and trend patterns to help you with your market decisions. However, you have to put in mind that not every trade strategy works for everyone because each person is unique and decision making skills are also unique. But, it is advisable that traders, new and old ones, to gear more to levels of support and resistance and price action as trading basis. When you trade properly, this can be kept clean and simple and efficient.
HERE ARE SOME OTHER TIPS THAT CAN HELP YOU SIMPLIFY TRADING:
1.HAVING A DIRT FREE TRADING ATMOSPHERE
It is always nice to work in a clean space. Trading needs a lot of room for concentration that is why if you want to trade well, you have to concentrate well. With a clean and ideal trading environment you can plan your moves with a peaceful mind. Make sure to have a clean workspace or trading room. Don’t bog your mind with all the clutter around you. Instead you can arrange your desk and put only the things that you need most such as your computer, pen, and paper, and your trading journal if you have one. It has always been a fact that your environment always affects your mindset. Trading is easy but having a good trading routine is essential. Part of that routine would have to maintaining a good environment.
2. HAVE A CONSTANT MONEY MANAGEMENT
You must have an upper ceiling that you are willing to risk on individual trades. You will know this if you take the money that you can lose safely to trading and then multiply it to a smaller percentage such as two percent or lesser. This does not actually mean one or two percent of your balance. As a matter of fact, you can deposit to as much as your first trade’s first amount. When you bet smaller amounts of cash and having just minimum deposits then that is absolutely fine. You don’t actually have to leave lots of money to the broker. Just deposit what you need. You will basically have that good feeling when you have a smaller amount of cash with you. This way you can ease your tension from trading real money.
3. STICK WITH SIMILIAR ASSETS
A skill that you need to hone in trading is understanding your assets. It is ideal to have more understanding in a one or a few assets than skipping from asset to another. Moreover, if it’s possible, you must stick o major currency pairs such as GBP/USD, EUR/USD. USD/AUD, and JPY/USD. There is lesser liquid market with other pairs or exotic pairs. Trading with these exotic pairs can bring turbulence to price movements and these are of course quite hard to achieve a successful trade.
4. STICK WITH A SIMILIAR TIME FRAME
In trading, it is pretty much ideal to have a similar time frame. For example, when you have ten to five minute expiries, you may be dealing with a five minute chart. Yes, one minute expiries may work but it can be filled with noise and your viewing window may be limited making it quite hard to trade well. It is only advisable to go to the one minute chart if you want to have a closer perspective of hose prices are acting.