We need to address building a strong base for a framework to actually trade, once you have your base you can refine, adjust, and tinker around the edges to super-size your success but a robust base is an absolute must.

We can break this article down into two parts. The first is the search for knowledge and how to look to build your strategy. The second is the simplicity you will need within your strategy to be successful.

In trading you will always be learning but this is about research to build from, the research process cannot be rushed, it will take considered thought and an attitude as if you are studying for an exam. Trading is a strange world when starting off or are looking for a strong base, you need to navigate the noise of people selling courses, indicators and sometimes selling unobtainable dreams. I feel you have to treat the research as if you wanted to become a professional in any other industry. If someone told you that you could become a successful doctor in 1 year, you would likely not believe them (and would definitely not let that doctor treat you) so why apply the same attitude to trading? I am not saying you need 6 years to be successful but you do need the attitude of steady progression and having to build up your knowledge and experience over a reasonable amount of time. Trading will not bring you wealth instantly.

As with most points with trading, you have to start with yourself. As previously mentioned, you need to trade what reflects your personality. Pick a strategy that suits the time of day and that suits your life style and you have the time to concentrate with genuine focus. Getting this right with dedication and concentration that suits you will guide you to a basic strategy and from this point you can develop to build success.

But after talking to many traders I want to concentrate on the journey for knowledge to construct your personal style of trading. There are many strategies, indicators, social trading, even EA’s either to buy or for free on the internet. This noise can make your path to success long and winding as your choices can be influenced through promises of wealth or instant success. This is where you need to look inwards and use the knowledge out there to build a strategy around you, for you. The only way to success is starting with yourself and adding knowledge to build around you.

Some may say your trading strategy is not as important as your mind set you apply to it. Even though I do feel this is true, your trading strategy is the bedrock of your psychology and you have to be comfortable with it, it has to be familiar and you need to embrace it. You have to be settled with no worries about your strategy otherwise it will undermine your trading. You need to be comfortable within your strategy it is where you fall back too if things are not going well. This is the rest point to mould, shape and make your trading work for you as blindly following other people’s trades will never work. Make your own judgement, by all means use people ideas but; develop your own take on them.     

My advice would be to look at the traditional indicators and well established Technical Analysis patterns or price action (there are hundreds of variations to suit you). You may find you are a fundamental trader and have a great grasp of the economic landscape to trade from. In my experience either of these will stand you in good stead. As I have found, if you want long-term consistent success, stay clear of all the strategies that promise high probability returns. As each trade is put on, on its own merits. It is a jigsaw puzzle and each time the picture is different.

So if we concentrate on TA as this is how I trade, you need to work through the likes of babypips.com or STA recommended text books and see which indicators suit how you trade and how you put your puzzle together to come to a confident idea for your trade. You will never be right all of the time but with each trade you need to prepared to be wrong.

Keep your indicators to a minimum, as you can get into a cycle of adding and adding indicators and you will eventually become confused. Do not fall into the trap and the cycle that your next new and more powerful indicator will be the one that will bring success. Stick to a small number that are key to the market so you can see the picture form more clearly. You need a clear mind to think straight to trade, so you also you need a clear chart to see what might happen. You can only process so much information so if the chart is cluttered you will not see obvious facts to be true. Complexity is laziness, the misconception that simple charts cannot be true. Clean charts are simple and simplicity can be repeated, which in trading means consistent long term success.

So keep it simple, this is one of the most important points, if it is too complicated you cloud the picture and make your decision making process harder. Why hinder yourself, have simple focused indicators that direct you to patterns that makes your choice for you.

Having a passion for detail, does again not mean multiple complex indicators, it means understanding the simple very well.

In conclusion, start with your personality, add reputable knowledge about trading, add a few indicators that you feel you can read and you can use for each scenario. The cleaner and more simple the charts and your trading strategy, the better the outcome in my experience.

Disclaimer Risk Warning

All opinions, news, analysis, prices or other information contained in this communication (the "Communication") are provided as general market commentary and do not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument. You are prohibited from disseminating, distributing, transmitting or forwarding this Communication to any other person or entity without our express written consent. Trading foreign exchange, foreign exchange options, foreign exchange forwards, contracts for difference, bullion and other over-the-counter products carries a high level of risk and may not be suitable for everyone. Any information we give in this Communication is focused exclusively on spot FX only and we provide no advice, analysis, recommendation or other views on foreign exchange derivatives, which are regulated financial products. Further, this communication has been prepared without regard to any specific investment objectives or financial position (including deposit size, leverage, risk appetite and risk exposure) of any specific person. Any reference to historical price movements is informational and based on our analysis. We do not represent or warrant that any such movements are likely to occur in the future, as past performance is not necessarily indicative of future results. The Communication, although based upon data obtained from sources believed by us to be reliable, may be inaccurate or incomplete, may not have been verified and may be changed without notice to you. You understand that we do not distribute the communication with the intent of impacting your investment decisions, therefore, you release us from any liability for any losses, including without limitation, any loss of profit you may incur as a result of reliance on such information or entering into any transaction. By receiving this material, you confirm and agree that you have read, received and understood these conditions. All comments, charts and analysis in this Communication are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this Communication; always do your own analysis. The risk of trading Foreign Exchange (Forex / FX) is substantial. The high degree of leverage associated with FX can work against you. Leverage can result in substantial losses, you should carefully consider whether FX trading is suitable for you in light of your financial situation. If you are unsure you should seek professional advice. We will not accept any liability for loss or damage as a result of reliance on the information contained within this Communication including data, quotes, charts and buy/sell signals. We would like to remind you that the data contained in this Communication is not necessarily real-time nor accurate. FX prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore, we cannot bear any responsibility for any trading losses you might incur as a result of using this data. Copyright Simon Cotterill Trading Ltd. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Education feed

Editors’ Picks

EUR/USD directionless just above 1.1200

The EUR/USD pair has started the week gapping lower amid tensions in the Middle East giving the greenback an extra lift. ECB monetary policy decision later this week weighing on the shared currency.

EUR/USD News

GBP/USD depressed but off daily lows

The Sterling came under selling pressure on news that Sir Alan Duncan has resigned as foreign office minister in the middle of a conflict with Iran. Tensions mounts ahead of Tories’ leadership definition.

GBP/USD News

USD/JPY remains in daily range below 108 following Kuroda comments

The USD/JPY pair is having a hard time finding direction in the second half of the day and continues to move sideways below the 108 mark.

USD/JPY News

Editors’ Picks

EUR/USD directionless just above 1.1200

The EUR/USD pair has started the week gapping lower amid tensions in the Middle East giving the greenback an extra lift. ECB monetary policy decision later this week weighing on the shared currency.

EUR/USD News

GBP/USD depressed but off daily lows

The Sterling came under selling pressure on news that Sir Alan Duncan has resigned as foreign office minister in the middle of a conflict with Iran. Tensions mounts ahead of Tories’ leadership definition.

GBP/USD News

USD/JPY remains in daily range below 108 following Kuroda comments

The USD/JPY pair is having a hard time finding direction in the second half of the day and continues to move sideways below the 108 mark.

USD/JPY News

Altcoins are set up to hunt for Bitcoin

Among the main Altcoins, only Ethereum is yet to be crossed upwards. XRP moves in another ecosystem and will not pull the market. Libra may be positive, not a danger to the market.

Read more

Gold in search of a firm direction, stuck in a range below $1430 area

Gold extended its sideways consolidative price action through the mid-European session on Monday and remained confined in a narrow trading band, around the $1425 region.

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology