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Posted on Apr 21, 2021 at 01:31 PM
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MEMOIRS OF A NIGERIAN FOREX TRADER – PART II

Having understood the need to have both your technical and psychological strength synced when trading, now let's learn what the KISS method is about and how to apply it to your trading!

KISS - KEEPING IT SIMPLY SIMPLE!

Forex Trading is such a business endeavour that draws from human psychology much more than intelligence. In a Forex Trading challenge, the smartest person can be floored by the underrated simpleton across your lunch desk. We’ve seen this happen over again and again.

In unprofitable situations, emotions override reason most of the time and with your emotions goes your precious Equity.

In the first part of this article, I noted that the reason we lose money in Forex Trading is that “we overcomplicate things”. 

When it comes to trading, we always want things to be hard so we tend to look for the complicated. However, today we will be looking at the KISS method!

KISS is the key and it means Keep It Simple and Stupid.

Even military strategies that are employed in dangerous operations use KISS-based systems. Funny, isn’t it.

To succeed with your arsenal of knowledge, you must learn to simplify your approach to a few logical reasons or steps to entering & exiting a Trade.

For me, successful trading is as simple as:

  1. Wait for price to come to key levels and watch for its behaviour around those key levels of Support and Resistance
  1. Wait patiently for breakout or reversal candlestick signals OR, any other entry trigger that makes sense to you, at those key levels.
  1. Apply proper money management principles and avoid exposing your capital to too much risk. Think of survival first before profits. Please, if you are not disciplined with money management, you can’t afford to be reckless in Forex trading because you won't last long in the market.
  1. Don't execute your trades on any timeframe outside your psychological balance. Consider Scalping on M5/M15, Day-trading on M30/H1 and Swing Trading on H4/D1/W1. Doing either of these on another Time-frame will totally alter your psychological balance & ultimately, your trade results.
  1. Have a concrete trade plan and follow it with discipline. Discipline & consistency of repetition is the rule that makes Champions.

These are just my sincere thoughts based on experience.

PS: If you are looking for anything extraordinary in your Forex trading business, you won't find any. What you have is usually enough. Just use them with Discipline and Patience and avoid greed.

What we call the "EXTRAORDINARY" is just the EXTRA in the ORDINARY. As far as trading is concerned, the only extra that should be in your ordinary (which is your strategy or trade plan) is the discipline and patience to follow it consistently, and that's what many traders don't have.

PATIENCE & DISCIPLINE are the shoelaces that tie the components of your trade plan into one bundle of success.

Maybe you have experienced any of these & would love to share with us, OR, you have more points to add to my list, kindly share your thoughts with me in the comment section below.

Love to read from you soon. Happy Trading!


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