There is no reason to look for a very complex or convoluted strategy. The best strategies may be the simplest , in which fewer elements are involved when making decisions. What you use you will not have better results, even more likely that your results will be worse in the long term since many indicators can give you opposite signals.
Specialize in a single currency pair
Continue with the above, the simple works. It is not necessary to handle and know all the currency pairs, since this way we may miss interesting things. Focusing on a single currency pair allows us to concentrate all our efforts on understanding how your quote moves.
If we try to trade with 5 pairs at the same time, learning to negotiate becomes very difficult. We will have to learn the characteristics of each currency pair separately since each pair is unique. Each currency pair:
- They have to be handled in different ways when an open position is maintained
- If you are a novice, start with a single pair. Once you are consistent with one, you can begin to learn the characteristics of another.
Choose a single term
- In the same sense as the above, it is advisable to start operating using the same time horizon. This has several benefits:
- It allows us to concentrate on the learning of a single period of time, therefore, we eliminate the confusion that can generate us operating in multiple time horizons.
- We should only look at a single graph, thus improving the efficiency and quality of our analysis.
- We avoid contradictory signals that can be given if we use different temporal horizons.
- Remember that all this is to make everything easier. Once you are getting experience you can start to complicate your analysis more.
Most novices accumulate as many indicators as possible within a price chart. They have the feeling that the more indicators they use, the better they will go.
The reality is that the greater the number of indicators, the greater the degree of confusion since many are contradictory and give opposite signals. Also the graphics become more difficult to read and we will not have clear signals. Visit https://www.amarkets.com/ now for your more questions regarding the same.
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