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The following guest post is courtesy of freelance writer Dwayne Buzzell.
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In Forex, there are many types of strategies. No wonder that you have heard about many weird strategies where the websites or masters claim that these strategies are the most successful strategies in Forex industry. There is no doubt in that as these strategies are so much success that they are giving away these strategies to random people in the market, right? No traders are going to share their secret with you even if you pay money. That is why traders who have done many paid educations from many renowned traders in Forex market, they do not believe these strategies. They have always said that the best strategy to make your profit run in Forex is the KISS strategy. It is not the kiss that you are thinking in your mind, but it is another thing that is used in Forex. In fact, most of the professional Aussie traders have developed their trading system based on the simple principle of KISS.
What is KISS STRATEGY?
KISS stands for Keep It Simple Stupid. If you have logged into your Facebook account and have visited many funny pages, you will see that there are many people who have solved their problems in many stupid ways. These are stupid because you do not think they are going to work but they actually work. These stupid acts prove that if something works and if that is stupid, it isn’t stupid at all. Keep it simple strategy is such a strategy that makes the minimum use of the Forex resources and yet it provides the most useful information of the market. If you have been using many hard strategies in the market, you will see that traders are always preferring to use the simplest form of strategy. Whether you are talking with an amateur trader or you are talking with a Forex master, all of them always focus on the easy and simple use of their strategy. This is the KISS strategy.
But does it work?
It always works and if you think we are trying to bluff you, talk with any Forex professionals. They will always say that the best way to make a profit in Forex is by using a simple strategy and keep it at a minimum level. You will get two benefits at once when you keep your strategy simple. You do not need to analyze a lot of information and you can easily focus on the market price level. There will be not many distractions for you. The best part and bonus of KISS strategy is you got to make money. However, if you are completely new to this trading industry then you should use your demo trading account Australia, to develop your own trading system. It’s true that you will face to face many losing trades in demo trading but make sure that you learn from mistakes. Never make your trading system to much complicated rather keep things very simple.
Knowledge is the key to success
Keeping things simple doesn’t mean that you won’t have to read about Forex trading basics. In fact, without learning the details of this market you are never going to become a successful trader. The retail traders in the online trading community often consider trading as an easy task and thus they take a huge risk on every single trade. Sometimes they might have some big winners but considering the long term output, trading with big lot size is just a suicide mission. Being a currency trader you will have some losing trades but you need to make sure that these losses are not exceeding more than 2 percent of your account capital. When you place a trade, always risk the minimum amount possible. Focus on your trading strategy and find high-risk reward ratio trade setup to survive the extreme volatility of this market.