Forex KISS for Improving Bottom Line
When it comes to forex trading, Forex KISS certainly is a familiar phrase among the traders. Kiss doesn’t mean “kiss” literally. Instead, it stands for Keeping It Simple Stupid. Yes, you heard it right. It is basically about how to make forex trading as simple as it can. Simple doesn’t mean less profit though. In fact, it can even increase profit and improve bottom line. This particular strategy is definitely what most traders want because it helps them to smartly invest energy and time into learning basics and practicing on how to make return from the beginning to the end.
The truth its sophisticated tools, methods or techniques in forex trading doesn’t always promise better result or more profit. In fact, it is very common for traders to even be poorer and more exhausted than before they start practicing those techniques. Therefore, it is important to understand that not every sophisticated technique promises higher profit. It means that a trader should not push himself into practicing such technique that he actually doesn’t really know how to make use of it. Instead, choosing simpler techniques that are easy to learn become better way for new traders to learn the trading.
Secret of Forex KISS
So, suppose you have decided to apply the Forex KISS strategy, you have to know the key concept or idea behind this strategy. Indeed, it is very basic. It refers to not letting go of the fundamentals. Yes, it is crucially important to stick to the basics of Forex trading strategies. For instance, it is common for the traders to make endless extrapolations and guesses in order to be more familiar with the market. However, what matters is the most is the price because it should match the security’s underlying value. IN other words, using any sophisticated tools and techniques is actually fine but the traders should always remember about coming back to the fundamental realities.
Principles of Forex KISS
In general, there are three main principles that every trader should remember. Firstly is to always remember that they trade real currencies and in the real countries. It is necessary to be aware of anything happening in the country that can influence the economic because it will influence the market as well. Secondly, is to establish meaningful and sensible strategy that should always be followed all the time. Thirdly, is to discipline themselves to always stay within reasonable risk management which means to be fully aware of when to stop loss orders.