If you can't keep your emotions in check when trading, you will lose money. Lots of it. Pipsychology was created to help minimze this from happening to you. The most significant action that you can do to improve trading profits is to work on yourself. Really knowing yourself and how you think can give you an edge that others in the market don't have. My goal is to share practical advice to improving your mental side of trading without boring you to death. Hopefully you can develop the mental edge you need to become the best trader you can be.
Keep It Simple
We live in a very complex world. Cell phones are sending and receiving email and photographs, computers are moving out of the office and into the entertainment room, and iPods have been integrated into anything and everything imaginable, including your sneakers. We as humans have a tendency to be drawn to complex things because they're newer, faster, smarter, and innovative. Innovation is growth and development and advancement. We feel all warm and fuzzy because we moving ahead and securing our future. But with all of that, we're also making things that much more complex. And complexity breeds distraction. It's always a better idea to keep it simple.
Now, with Forex trading, technology has had an enormous hand in shaping the industry. Technology provides us a 24-hour market, instantaneous execution of market orders, real-time charts, and software platforms that allow us to analyze market data. Could you continue trading without access to your charting software?
I think not!
Your successful traders will tell you to minimize your use of and exposure to complex trading strategies. Novice traders usually go the complex route because they want to avoid risk and blindly leaping into Forex trading.
Sure, you learn the intricacies and indicators of your trading strategy, but you never really study the market. You learn the method itself, and that's it. And most of the time, you look at way too many indicators at one time. Some indicators display the same information, and many indicators end up not doing what you anticipate. Many traders believe that indicators help predict the future, when in actuality, they only describe the past.
Take with you that a complex strategy may not be the way to go when you are beginning. Simply understand that the market as a whole is complex and that it can't be totally understood by merely using an indicator. Complex indicators and trading strategies can work, and do work for many. But as a beginner, start right and start simple.
K.I.S.S - "Keep It Simple...Stupid"
