Learn Forex Trading - Pro Trader
Learning to trade Forex can be as simple or as difficult as we choose to make it. We at Pro-trader tend to concentrate on using simple time tested time-proven methodologies. It has to be said that many other vendors choose to complicate this process often for no other reason than to try and justify the very high fees that they charge. For instance, many of the online training courses will tell you that they have 80 hours or a hundred hours or 1000 hours of online video instruction.
So initially that sounds great but how many of us really want to sit down and wade through hundred hours of video. By the time we’ve got to the end, we have of course forgotten entirely what was covered in the first hour. The key to trading success absolutely is to keep things simple (KISS). Think about it if the course requires hundreds of hours of video to explain the methods then what chance have you got of understanding it?
It is also going to be exceptionally complicated and convoluted to apply to the markets. Trading does not have to be like this if we simplify it down into its core components. Most trading methods are based around identifying some form of support or resistance level whether this is achieved by the use of trendlines, pivot points, volatility breakouts, Donchian channels, Fibonacci levels or whatever.
Truthfully how you identify your support and resistance levels is not as important as how you trade around them. By this I mean once you have identified a support or resistance level there are essentially only two ways to trade it. You either trade the breakout through that level or trade the bounce off that level. So you will buy a breakout up through resistance level or sell a bounce down off of that same resistance level and vice versa for support levels. It is generally much easier to trade breakouts than it is to trade bounces.
This is because it is very clear when the breakout occurs because price penetrates the support or resistance level and you do not need much additional confirmation. Whereas bounces off of those levels can be a lot more protracted and confusing affairs. Therefore bounce traders often need to apply additional indicators to the charts to try and confirm those bounces are valid.
These indicators may be chart patterns such as candlesticks or indicators such as MACD, RSI, etc. Suddenly the process becomes a whole lot more complicated. It is true that you can make money trading both breakouts and bounces but by far the easiest and simplest trades are breakout trades.
When you are learning to trade Forex you want to keep everything as simple as possible. Therefore find a method of identifying significant support and resistance levels and then look to trade the breakouts through those levels. Combine this with a simple money management approach of always using a reasonable stop loss (not too large so you lose a fortune when it gets hit and not too small so you are constantly stopped out by minor market noise) and some form of position sizing method such as never risking more than 2% of your account balance on any individual trade and you will be well on your way to trading success.
So initially that sounds great but how many of us really want to sit down and wade through hundred hours of video. By the time we’ve got to the end, we have of course forgotten entirely what was covered in the first hour. The key to trading success absolutely is to keep things simple (KISS). Think about it if the course requires hundreds of hours of video to explain the methods then what chance have you got of understanding it?
It is also going to be exceptionally complicated and convoluted to apply to the markets. Trading does not have to be like this if we simplify it down into its core components. Most trading methods are based around identifying some form of support or resistance level whether this is achieved by the use of trendlines, pivot points, volatility breakouts, Donchian channels, Fibonacci levels or whatever.
Truthfully how you identify your support and resistance levels is not as important as how you trade around them. By this I mean once you have identified a support or resistance level there are essentially only two ways to trade it. You either trade the breakout through that level or trade the bounce off that level. So you will buy a breakout up through resistance level or sell a bounce down off of that same resistance level and vice versa for support levels. It is generally much easier to trade breakouts than it is to trade bounces.
This is because it is very clear when the breakout occurs because price penetrates the support or resistance level and you do not need much additional confirmation. Whereas bounces off of those levels can be a lot more protracted and confusing affairs. Therefore bounce traders often need to apply additional indicators to the charts to try and confirm those bounces are valid.
These indicators may be chart patterns such as candlesticks or indicators such as MACD, RSI, etc. Suddenly the process becomes a whole lot more complicated. It is true that you can make money trading both breakouts and bounces but by far the easiest and simplest trades are breakout trades.
When you are learning to trade Forex you want to keep everything as simple as possible. Therefore find a method of identifying significant support and resistance levels and then look to trade the breakouts through those levels. Combine this with a simple money management approach of always using a reasonable stop loss (not too large so you lose a fortune when it gets hit and not too small so you are constantly stopped out by minor market noise) and some form of position sizing method such as never risking more than 2% of your account balance on any individual trade and you will be well on your way to trading success.
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