A simple trading method means making all aspects of your trading activities uncomplicated and easy to apply. Starting from the interpretation of price movements to the way you execute a position. The simplicity factor to get consistent long-term profits is often forgotten by traders. However, most traders are more confident in applying complex trading methods using various technical indicators.
Can simple trading method gain more profits?
Many traders think that by trying a number of systems in their trading strategy, they will quickly get consistent profits. However, they actually make a lot of losses over time which causes frustration.
They think that a trading strategy and the use of a combination of several technical indicators will gain them profit. In reality, the forex market conditions are not static and cannot be controlled. With volatility that reflects the emotions, it is very difficult to predict the direction of change of price movements.
Traders who want to simplify the trading process in the way above will never get the results as expected. The trading method will be simple if your idea is not to look for the best strategies. By reading the pattern of market price movements will provide a market perspective in trading. Then, this market perspective will produce a trading method that refers to market price movements during trending conditions. A trading method based on an objective market perspective is a trading system with standard rules and does not involve the emotions of the perpetrators.
How about professional traders?
Professional traders generally apply simple trading methods. Additionally, you can apply the price action method that refers to the pattern of price movements in trending or ranging market conditions. According to Investopedia, many traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. This method is quite simple, effective and relatively easy to use as a reference. The basic concept of this method is the interpretation of patterns of price movements that repeat periodically, not by using complex indicators on a trading chart.
If you are looking for an effective and simple way of trading, try to implement a trading strategy with price action combined with support and resistance levels on a demo account for at least 3 months to produce consistent profits before opening a live account.
Read more: Learn How Price Action Trading Works
