The more simple your trading strategy is, the better it performs

(Updated Oct. 21)

2 min read

Forex Trading Program - How To Choose The Best
A simple Forex strategy but profitable is the key to constant long-term profitability.

Why is that?

Because it allows traders to benefit on their advantage without emotions day in and day out. We want to present you a simple but profitable forex trading strategy.

Traders Paradise found it is a swing trading system, and we will trade on a daily chart.

So it is vital to follow along carefully and make sure that you understand all the steps.

Why swing is a simple and profitable trading strategy?

The more simple your trading strategy is, meaning less moving parts,  the better it performs.

Do you remember from our previous posts: KISS rule!

Simple means a robust trading system which can manage through many market conditions.

Yes, you may find that many traders use so many different trading indicators.

And they are still looking to be consistent?

You have to find what your indicators do. That’s your first task.

Now, get rid of the indicators that really are not benefiting you.

This simple profitable forex strategy has a few moving parts.

If you still don’t know them, they are simple to learn.

So, what you have to learn?

How to use Fibonacci? Find here>>>.

Do you know how to enter a trade? Find here>>>

And you will need to know how to use Stochastics indicator.

We suppose that you already know what is it.

The Stochastic Oscillator is a technical indicator that helps traders determine where a trend might be ending.

The oscillator works on the following hypothesis:

During an uptrend, prices will remain equal to or above the previous period closing price.

But, during a downtrend, prices will likely remain equal to or below the previous closing price.

The Stochastic help you determine if it’s still good for you to enter a trade after a moving average crossover. Also, it helps you to avoid oversold and overbought zones.

More about Swing traders

Swing traders hold their positions for a few days, but rarely more than a week.

Identifying and driving on trends early is the central objective of this trading style. The profit goal tends to be set higher than that of day trading. Hence, the swing trader is expecting that by holding out for a few days, there is a better chance of capturing a larger price movement.

Unlike the day trader, the swing trader has to deal with overnight risk.

Swing trading requires less monitoring of the market. This type of trading is generally favored by people who hold their day jobs.

Honestly, if swing trader wants to be successful, such must still keep up-to-date with the latest fundamental and technical changes in the market. Even if they are not monitoring the market all the time.

Back to our simple and profitable forex trading strategy

Simple Forex strategy but Profitable

This is the daily chart of the USDJPY Forex pair.  

What can you see?

Point 1 is the beginning of the Fib pull

Mark 2 is where the pull of the Fib tool was ended

With 3 we marked the zone of the 61.8% retracement level and below that, in the red rectangular area, you can see overbought Stochastic.

4 is point shows the price put in an inside bar/spinning top candlestick.  The trade is shorting the lows.

Mark 5  is a profit target

You have to manage your trade while it is in progress. Hence, you may be stopped out depending on how tight your stop placement is.  Many Forex traders make a common mistake. They use too tight a stop because they want a larger position size. Don’t do that!

The bottom line

Simple, profitable Forex trading system depends on your skills an affinity.

This is a simple trading system but it’s not easy yet.  Every trade will not be a winner. The key is whether you can leap back after a loss.  Anyway, you should test it out to see if it suits you.

If you have tested your forex system thoroughly through backtesting and by trading it on a DEMO account for at least 2 months you should feel confident enough to know that as long as you follow your rules, you will end up profitable in the long run.

Trust your system and trust yourself!

Don’t waste your money!

 risk disclosure

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