Do you have a trading plan that is updated regularly every time you enter the market? Or just open a random trading chart and try to find opportunities for entry without logical reasons? A clear plan will help you find a road map to reach your destination. Without a plan, you will have difficulty doing any work, especially in forex trading. Additionally, unclear instructions will make you confused and likely to make bad trading performance.
You cam apply a simple trading plan in the forex market that seems complex and difficult to predict. In fact, many professional traders use simple trading. If you are a beginner trader or who is still confused about making a trading plan, you should use a simple trading plan. All you need is the discipline to always follow this trading plan.
Let’s check out simple ways to improve your trading performance:
Trading only on major currency pairs and gold
Try to trade on popular major currency pairs including cross-rates, as well as gold commodities, including: EUR / USD, GBP / USD, AUD / USD, NZD / USD, USD / CAD, USD / JPY, EUR / JPY, GBP / JPY, AUD / JPY and XAU / USD. You do not have to analyze 20 or more currency pairs. If there is a significant movement in the market it will usually be seen in the tenth price action of the pair. The nine currency pairs and gold are also popular among traders.
Trading only on daily time frames
The daily time frame is a popular one. Many analysts and observers use daily charts to provide analysis and predictions. Daily time frames provide a clearer picture of the market, unlike low time frames that tend to be a lot of noise and signal errors. In addition, the daily time frame is more clear in describing the movement of market prices thereby increasing the ability of analysis in the long term and short term. Price action on the daily chart better reflects market sentiment in general.
Define clear trading signals with simple criteria
According to Investopedia, Forex signal systems can create executions that are either manual or automated. Signals are determined based on trading strategies. Try to make a strategy that is simple and clear, avoid using many technical indicators so that they appear complex and difficult to analyze. Prioritize important indicators, especially indicators of trends and momentum.
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