Forex Strategy Trading Tips 3 Easy Methods to Select High Probability Trades

I’m writing this article after I spoke with one of my traders a few days ago and she was asking me regarding how to discover high probability trades to profit from the markets.

Forex strategy trading requires you to follow your trading plan, be disciplined, and only trade high probability trades.

Most Pro traders use simple strategies with strict money management to help them achieve their trading goals and profit consistently from Forex trading. In this portion of my Forex strategy trading tips series I’ll be discussing 3 easy methods I personally use to help me select high probability trades.

Never opposed to the the Forex market current: Despite the fact I do use many custom indicators and trading strategies, most of my trading continues to be based upon basic trading principles. I always respect the overall trend and don’t attempt to go against it. I also respect strong support and resistance levels since they represent the region where supply and demand meet. The foreign exchange market is bigger than us and even if you have huge amount of money in your trading account it is nearly impossible to ever manipulate the market and make it go your way.

Use the K.I.S.S Principle: The KISS principle stands for “keep it smooth and simple”. One of the best techniques for getting confused, commit mistakes, and throw money away is by using complicated trading strategies that you just don’t really understand. I have already been trading the markets for years and I still don't use anything but very basic (but extremely powerful) trading strategies that enable me to generate the type of returns I expect from Foreign currency trading. You will find a Forex myth that claims that “complex Forex currency trading systems are better and make more money than the simple trading systems.” This is not always true. I know some very successful traders who don’t use more than a set moving averages and a MACD indicator to enter the market and make money from it. So don’t forget regardless of the system or strategy you choose to use remember to keep it simple and running smoothly.

Focus on your trading strategy and plan & ignore all the “noise”: The foreign exchange market is filled with opportunities. There are many Forex robots, indicators, strategies, mentors, signal providers, etc... However, the real challenge is to filter the good guys from the bad guys and quite often all the noise received from other traders or companies can distract you tremendously.

This happened to me initially when I first started. When I got started as an Forex trader I was trading with several professional Forex traders who all trade in many different ways. This made discovering my trading personally and my trading style quite challenging. Nevertheless, I understood that if I wanted to become a professional trader I was going to have to perform analysis and trade based upon my very own judgment, not someone else’s.

Subsequently, I strongly believe that anyone who aspires to become a profitable trader needs to develop themselves as traders and trade determined by their own judgment (even if you use someone else’s trading system, you are the one that must make the system work!).

In the next couple of days I will be teaching more Forex strategy trading tips straight out from my Currency trading vault.

To your trading success,

Jay Molina