Simplicity is the ultimate form of sophistication

Learn to Trade like the Banks

Really? You think that by analysing so many variables, like the guys in MBNC or CNN Business etc, that you will make better trades? Seriously? You think that spending 25 hours a days (I know its 24 hours a day) infront of your computer is going to make you snatch a good chunk of the money that forex has to offer everyday? That, my friend, is a big mistake and a surefire way to loose all your money to the forex and plus, did I mention that you are going to burn out as quickly as possible. Today, we are going to look at one pitfall that most traders fall into, and that is ‘Analysis Paralysis‘. Let us investigate into this problem and how to avert it. Don’t forget to ‘like’ it.
One big blunder that most traders (amateur and Pro traders) make is trying to analysis too much and basically trying to ‘control’ the market. man has been hardwired to think that more money comes from putting in more effort (and its true, to an extent). I have really taken out time to observe the behaviours of some people and I have to find out that man, on the average, is ‘scared’ when something that is perceived difficult is conquered with little efforts. Why is that? I mean we should even be thankful that the task was simplified.
My Friend who was preparing for his wedding likes working himself up. He goes to and fro ‘making’ preparations for his wedding. He hardly spends 30 mins to rest. When I asked him, ‘James, wont you make sometime out to rest and sleep?’, he will answer, ‘I have event coming forth. If I rest, something will go wrong’. Thats what an average man thinks, ‘if I dont do this or if I simply accomplish this, something is wrong’. Unfortunately, that mentality has found its way into the forex market.


I met with a forex trading and we got talking. He told me that before he trades, he looks at many variable: Moving averages, Parabolic SAR, MACD, Stochatics etc. I was like ‘What! aren’t you gonna go mad?’. Like seriously! Most traders make the same mistake.
Forex market is the behaviour of millions of people around the world. It will be wrong for someone to try to use definite tools to scientifically analyse the indefinite behaviour of participatories. One might be a victim of ‘analysis paralysis‘; This is a situation where somebody takes into account large sum of variables inorder to understand a situation.
In forex market, less is more. making profit is not a function of how many tools one analyses. It is a function of knowing the behaviour of people and using simple tools to understand how people behave at a particular given situation. For instance, Price action. When one is analysing price, you are analyzing the past events of individuals actions. Because humans tend to repeat actions, one will now use the information to take informed trades. Simple!
Another example is Levels. Prices get to a particular place and reverse. These actions happen ‘zillion’ times in the market. With a trained eye, one can identify these spots, that markets stop and reverse.
So, to round off. Simple price action (levels) can give all the money desired as long as one follows simple money management rules.
Join us and get trained to trade simply and profitably.
Happy trading!

Learn to Trade like the Banks

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Categories: Trade Articles