Hey traders I’m a new guy to this forum, I just wanted to spread my 2 cents about forex strategies from my experience as a trader. I have been trading for quite some time now and I have come to the realization that Technical Analysis will fail you more than it will help you.
Quick story, my uncle is 59 years old. He has been trading since before I was even born. He makes a living from trading and he also lives very comfortably. He drives a new BMW and a nice sized house. Now my uncle does not have the patience or the time to sit a try to learn a bunch of technical rules and analysis to apply to the forex market. This is trading, not math. He literally only uses a 100 day moving average and a daily chart with RSI. I rarely ever see him on the laptop maybe once or twice a week. He is also a stock trader. And I think this plays a huge role in his forex trading style because he holds positions for longer times.
Think about it. wouldn’t you much rather risk a small amount, to make a huge amount and all you had to do is wait a couple days or weeks? This is how trading is suppose to be like.
Have you ever spotted a perfect setup where price may have been rejected from a perfect support or resistance level, or trendline? So you place your trade and then you come back to check on things and you discover you have been stopped out? You asking yourself what went wrong or “This was the perfect setup”.
The problem with TA or price action is that you can’t give the market a set of rules like support and resistance because the market does not follow rules! The market is completely random for the most part. Now don’t get me wrong, you may see significant support/ resistance levels when you zoom out to the daily charts, but most of us don’t like waiting days and weeks for one trade setup. Also price action is seen differently among different traders. A support level may not look the same way to someone else. Or a trend line may not be the same trend line some one else see’s.
Traders make things way too hard. This is trading…not rocket science! Have you ever looked at an interview of a professional millionaire trader? And you happen to take a glance at their trading setup and charts? Then you discover that they don’t even use a bunch of indicators than junk up their charts? instead all they really have is maybe volume and a couple moving averages. The people that are making millions don’t sit in front of their screens all day trying to draw a bunch of trend lines and levels. instead, they are entering long term trends and holding the positions and taking big chunks out of the market. I personally trade the daily charts and I use heiken ashi candles. I enter trends and I ride them until the trend is over, while scaling out and taking profit. Similar to stock trading. I am sometimes in the market for days or even weeks but I don’t spend hours in front of the screen making live hard…lol
My point here is I think if you want to make consistent money in forex, you need to get rid of all the indicators and trade two ways. One way, is simply follow the trend. Using a simple moving average can help you spot trends. Once you find one, look for an entry and ride the wave.
The other way, is to trade news events and releases. Think about it, this is the only time where we as traders know when a big movement is about to take place. So why not capitalize off this? You can either straddle the news or just go with the breakout. More than likely you will be more profitable. Now by no means is this a 100% successful way of trading. We know there is no such thing! but wouldn’t you much rather take a risk on a big news announcement that will surely move the markets, instead of trying to figure out where price action is?
Just my thoughts about trading…I just think people make things way harder and it’s simply because they have been mislead.
