Keep It Sweet and Simple

KISS – Keep It Simple but Sweet

Everyone but everyone keeps saying that phrase above but how many actually follow its advice? It’s a phrase that everyone knows – but few unfortunately follow. In forex, it is a MUST that it is practiced without fail. The problem however is that everyone wants the next latest and greatest indicator because of that ‘Holy Grail’ mentality, joining the search team looking for that stupid Grail. You know – the one that doesn’t exist. That search will go on for ever and waste much valuable time better spent elsewhere.

Simple v Complicated

Generally speaking, in trading forex it appears to be those who tend to lose who have the very complicated methods although ‘complicated’ does have its place but it is definitely not for me.

Simple or Complicated

Simple or Complicated?

A new trader will usually start out with a simple system and often he will do ok. But as he then wants to ‘improve’ on what he has that’s when things start sliding downhill as he feels the need to improve his knowledge. The old adage ‘if it ain’t broke… etc’ applies very well in this case. Why play about with a winning system?.

I’m not the most stupid of people (but I do have my moments) and I have tried the ‘complicated’ systems and even the ‘very complicated’ too but I could not make a living from them. A trip back to the drawing board saw me improve results by employing simple simple simple. Be assured that the professional trader will not even look at anything complicated, he has neither the time nor the inclination for the endless analysis of indicators whether technical or fundamental, nor the need to play around with the endless lines on the chart that many of us seem to adopt.

Where to Focus?

I must say that my personal trading improved no end with the clear and uncluttered charts I now use. I definitely will not be fixing something that ‘ain’t broke’. The key is to never let go of the basics. What are the things you should focus on if you want to “keep it simple, stupid.”

News announcements  You are trading real currencies in real countries and any news from those countries will affect the price of that currency. By having a reliable news calendar at your disposal will help enormously and prepare you in advance for any shocks. DO NOT trade blind.

A reliable strategy This is where the Black Dog Program comes into its own. Everything that is required to enable and establish a proven, simple strategy is covered. I have used the Dogs in several of its incarnations over the previous 15 years or so and it has stood the test of time. I will use nothing else. At Black Dog we don’t use KISS but rather KIBS – Keep It Bloody Simple. Hopefully this will hammer the point home.focus
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Patience and Discipline Two very difficult words to master in the trading sense, but it can be done. Briefly, and we’ll come onto the subject in a later post, your Trading Plan should encompass all areas of your trading and cover all eventualities. You must discipline yourself to activate exactly what you say in your plan and have the patience with the trading side to wait for the signals that your strategy will generate.
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Trade Management If we manage our trades correctly then the money will manage itself. This is covered extensively in our program. We at Black Dog do not do Money Management as we would rather leave that to the bank manager.
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It doesn’t get much simpler than that – watch out for the news; use a reliable strategy; build your trading plan; trade management. Super..!!
 

Summary

Trading is difficult, let’s get that straight from the start. But is it? I believe that it is the traders themselves who make it difficult by complicating the issue with all manner of analysis, indicators, chopping and changing strategies, system-hopping, and so on. To be successful at trading (forex, or any other) you need an edge and then execute that edge ad infinitum using the focus points above but at the same time employing a sense of simplicity. We seem to have this propensity for making the simple into the difficult.
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So, why do so many Forex traders make trading harder than rocket science? By having all the distractions possible on their charts? Flashing lights, bells and whistles, dancing girls, and the like? Absolutely not needed.
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The more you have on screen, the more you have to distract, confuse, and disorientate you. Get yourself into that distraction free zone and concentrate on what really matters which is being able to make those decisions which will grow your account. Nothing more, nothing less.
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Reduce the number of pairs, or indices, or whatever, that you trade to cut down on the numerous and confusing signals that you will receive. The professionals usually trade only one instrument – that is why they are professionals. With a clear, uncluttered chart comes clear thinking when it really matters.

Conclusion

The simple traders are not the most successful; neither are the complicated traders. The best traders are the people who focus on the few key points and trade their system witfocushout the never-ending chopping and changing which can be seen on most trading forums.
  • News
  • Trading Strategy
  • Trading Plan
  • Trade Management

These are the points that have stood me in good stead for years and continue to do so. A nice clear uncluttered chart, an excellent strategy, a plan for everything, and once in a trade then I have every eventuality covered. Excellent..!!

The Black Dog Program has modules covering all these topics and much much more.

Remember – KIBS..!!

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