Every forex trader knows that the forex markets are very complex. If that is the case then how can a forex trader make profits from the market? Is that the reason 90% to 95% of the traders loose in the forex market?
No system is complex; it is just how we look at it! If you look any system as a complex system then it is complex and if look at it as simple then it is simple. Forex market is also the same, do not make it complex. Keep it as simple as possible.
To keep it simple, you need to know a simple concept!
I think you might have already heard about the terms like fundamental analysis and technical analysis. Fundamental analysis is nothing but analyzing the economical conditions of a country with which the currency you trade and whereas technical analysis is nothing but analyzing to find when the trend repeats in the forex market.
Now let's go to fundamental analysis. As I said, it is nothing but analyzing the economical conditions. Economical conditions of a country do not change so rapidly. In one night, the economical condition of any country will not change. The economical condition of a country either improves gradually or depreciates gradually. So fundamental analysis is important but do not dig it in depth, just find out whether the economic condition of country is depreciating or improving.
Now come to the technical analysis. It is nothing but finding of when the trend repeats. This is very important. Economic conditions of a country move slowly whereas the trends move very rapidly. That's the reason technical analysis plays an important role in the forex market. With the help of technical analysis if you can find when the trends would repeat, then you will win the forex market.
In technical analysis there are many indicators which you need to consider to find out when the trend repeats. Technical analysis is nothing but the mathematical analysis. Analyzing the indicators is a real tough job. Technical analysis takes lot of time. May be if you manually do it for yourself, sometimes you may not even find a single trend that day. That's the reason many traders who cannot do technical analysis for themselves depend on some forex signal providers or on automated forex trading systems.
Automated forex trading systems have been developed specifically for this purpose. Automated forex trading system is the software designed with many mathematical algorithms used to find the trends in the market. They are cheaper compared to forex signal providers and better in providing good signals. But when use automated forex trading system you need have your strategy that works with your automated forex trading system to make consistent profits.
Keep things as simple as possible. Use the available resources to reduce your risk as well as to increase profits. Otherwise you always feel forex market as a complex market and you will be in the list of 90% to 95% who loose in forex market.
One Simple Concept To Win Forex Market!
