Forex Strategy Trading Tips: 3 Easy Approaches to Select High Probability Trades

I’m writing this article after I spoke with one of my traders recently and she was asking me regarding how to locate high probability trades to profit from the markets.

Forex strategy trading requires that you follow your trading plan, be disciplined, and only trade high probability trades.

Most Pro traders use simple strategies with strict money management to assist them to achieve their trading goals and profit consistently from Forex currency trading. In this portion of my Forex strategy trading tips series I’ll be sharing 3 easy methods I use to help me select high probability trades.

Never go against the market current: Although I actually do use many custom indicators and trading strategies, most of my trading continues to be based upon basic trading principles. I always respect the overall trend and don’t aim to go against it. I also respect strong support and resistance levels as they represent the region where demand and supply meet. The foreign exchange market is bigger than us and even if you have millions of dollars in your trading account it is almost impossible to ever manipulate the market and make it go your way.

Make use of the K.I.S.S Principle: The KISS principle is short for “keep it smooth and simple”. Among the best techniques for getting confused, commit mistakes, and throw money away is to use complicated trading strategies that you don’t really understand. I have been trading the markets for years and I still only use very basic (but extremely powerful) trading strategies that allow me to produce the type of returns I expect from Forex currency trading. You will find a Forex myth that claims that “complex Fx trading systems are more effective and earn more money than the simple trading systems.” This is not always true. I know some very successful traders who don’t use more than a set moving averages and a MACD indicator to enter the market and cash in on it. So don’t forget regardless of the system or strategy you may use remember to keep it simple and running smoothly.

Focus on your trading strategy and plan & ignore all the “noise”: The Forex market is filled with opportunities. There are many Forex robots, indicators, strategies, mentors, signal providers, etc... However, the actual challenge is to filter the good guys from the bad guys and frequently all the noise caused by other traders or companies can distract you tremendously.

This happened to me when I first started. When I got started as an Forex trader I was trading with several professional Forex traders who all trade in many different ways. This made discovering my trading personally and my trading style extremely tough. Nevertheless, I understood that if I wanted to become a professional trader I was going to have to perform analysis and trade based upon my own judgment, not someone else’s.

To summarize, I strongly believe that anybody who aspires to become a profitable trader needs to develop themselves as traders and trade determined by their very own judgment (even if you use someone else trading system, you are the person who must make the system work!).

In the next couple of days I will be teaching more Forex strategy trading tips straight out from my Foreign currency trading vault.