In order to become a consistently profitable forex trader there are number of things that you will need to make a conscious effort at mastering. The first thing you will need to do when begging to trade forex is to use a simple method that does not cloud up your charts with numerous lagging and useless indicators. All you should be concerning yourself with is price action analysis, which is the art and skill of identifying price action setups that repeat themselves over and over in the FOREX market. The reason why you should be using price action as your trading method is because it will directly influence the other aspects of successful trading, which also happen to be the most important. Psychology and discipline are the most important factors that determine success at forex trading.
If you cannot effectively manage your emotions in the market and maintain enough discipline to stick to your trading plan, than you will not be around long enough to consistently make money in the forex market. If you are using an overly complicated method that has you using numerous lagging indicators in an attempt to decipher the price action that is more readily deciphered on a naked price chart, than you are naturally going to confuse yourself and suffer a much harder journey while learning to trade. Success at Forex Trading is determined by how consistently you conduct yourself while interacting with the market. The simple truth of the matter is that most people cannot effectively function in an environment where they have the possibility to do unlimited damage to themselves, financially speaking.
It is critically important that you get started in your forex trading career by learning from someone who has made all the common mistakes so that you can learn these lessons without having to pay your hard earned money to do so. This way, not only will you save yourself a very large amount of money from avoiding common mistakes, but you will also greatly shorten your learning curve in becoming a forex trader. The advantage to shortening your learning curve is that you will develop the mindset of a consistently profitable forex trader much faster than you otherwise would have.
Simplicity in forex trading cannot be stressed enough, especially to beginning traders. This is because most beginning traders seem to think that they need a very complicated method or a very expensive piece of trading software developed by a math whiz to make money in the markets. This couldn’t be further from the truth, in fact, most professional traders in the “pits” of the major exchanges in Chicago and New York, make all of their trading decisions solely on price movement. They would laugh at you if you came to them with a MACD or a stochastic indicator. This is because they have figured out, likely through much trial and error; that the only thing that matters in successful trading is price movement. Forex trading at home from your computer or on a beach from your laptop is no different; the only critical factor, as far as method of trading is concerned, is price action.