Trading the Forex market can be tricky at times. We all see this massive flow of money moving between central banks and all we want is to cast our little net into this river of money for some pips. As a technical trader these are the coomon traps I fell into while developing my trading plan.Don’t Analyze the News for Future Price Action!Fundamentals matter, but as a technical trader we are aware of economic news as they tend to act as catalyst. News events offer opportunities, but price action is what matters most! How often have you seen news spur price to technical support and resistance levels? I will leave that to the economist!Don’t Trade the News!Again, we should always be aware of news releases during our trading session. I don’t trade the news, but I then again I am not a fundamental currency trader either. I do know some super successful fundamental currency traders. It is just not my game. I like to wait for the dust to settle a trend to emerge before jumping into the fray. If, and that is a strong if, I have any open positions going into any major announcements I am really focused on where my stops are located to protect my position if I am deep into profit. More often than not I exit open trades if minimally in profit or in a losing position. News is the fuel, but technicals are in control.Keep it Simple!When I began trading I wanted to learn every forex strategy on earth. I found that the simpler strategies afforded me more consistency! And that is what I was after all along. After being able to consistently drive profits out of my trading activities I turned my focus to maximizing entry and exit points, yet deploying simple strategies all along.
Remember, these are my "Enlightened" thoughts. You should develop your own strategies and plan.
Happy Trading!!
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