Using a simple forex trading method focuses your mind on managing your emotions to maintain discipline instead of figuring out a confusing mess of lagging indicators on your charts. Forex traders are always looking for that “perfect” trading system that will make them rich and retire early. There is no perfect trading method, as it requires self-discipline, control, and an intense focus on risk control, which are factors for successful forex trading.
With that in mind, you need a good trading method that is relevant, easy and efficient. The simple and effective trading method is based on price setups using a basic price chart. The pricing forms have a recurring pattern which, to the expert eye, can be used as a feature entry or exit system in the forex trading market. The data you’ll need is freely available on the forex market in the form of price action on any price chart. Those black box systems or ebooks that promise to give you the secrets of the forex market are usually scammers. Don’t be fooled by people selling such get-rich-quick schemes.
Is there a better way to do market analysis? The best way to analyze a market is to study what the price action is doing. Human behavior causes price fluctuations, analyzes how people react within certain limits to an economic event. The saying “buy the rumour, sell the fact” is based on how the market reacts to news.
Traders trade by predicting the future, offering higher prices when good news is expected and lower prices when bad news is anticipated. Once the predicted event happens, there is nothing else to do but analyze and predict the next possible event.