Resolved Question
Forex market too valetile to allow for complex trading methods?
Is this true that forex market is more error prone technically than other markets? Therefore complex trading methods won`t work in it.
about 1 year ago
Best Answer - Chosen by Asker
I think it's best to keep it simple. You don't want to get caught up in paralysis by over-analysis, don't you? Besides, plenty of traders are probably watching out for simple support/resistance levels or making use of the basic technical indicators, making those signals self-fulfilling most of the time.
about 1 year ago
Answers (2)
Why use a complex method in any market? The more complex the method is, the more it clouds your vision of the market, whatever market that may be. I've seen both complex and simple methods. The complex method is usually the one that ends up contradicting itself, leaving the trader confused.
about 1 year ago
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One problem I see with having complex trading methods is that it may constrain you. Having too complex a system may leave you with too many rules to follow that you barely get any trade signals. It may be best to stick to simple systems, especially if you are just starting out.
Now, while the forex market may be volatile, you can take advantage of this if you develop the right system. Maybe a long term trend following system? Or perhaps you can focus on break out trades? It depends on your trading personality. I suggest you demo and backtest various systems to see which one you feel most comfortable with.
about 1 year ago
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