In forex trading, just like in any other form of business, there are several rules that the traders have to abide by. There are also methods of trading and one such method of trading is K.I.S.S.

K.I.S.S is an acronym for Keep It Simple and Stupid. This acronym is not only applicable in the forex market but also in any other business venture out there.

It is important to keep simple strategies from time to time that will actually work instead of keeping complex strategies that take more time to execute.

In a bid to keep it simple and stupid in the currency trading, it is important to note that simplicity goes a long way in ensuring that the laid down strategies are executed. There are a few things that every trader has to keep in mind before venturing into the forex exchange and they include:

Simplicity

People tend to over look this word simplicity. Everything in this world is simple but it is us humans who complicate them. That is also true in the world of business and specifically in the forex trading. Most traders, especially amateurs believe that using complicated and expensive approaches will ensure they win big.

That is a wrong move that most people do not know about. In order to make trading to be a simple process, traders need to know that it is not about how many orders they create but about when and how the orders are placed.

Traders are advised to always place the bets according to the price on the charts and not by looking at the next opportunity that arises no matter how lucrative it may seem.

Simplicity goes a long way in ensuring that a trader goes about the trading process with a level head without involving emotions that may arise once in a while.

Stick to the Fundamentals

Every trader who wants to make it big in forex exchange must understand that there are fundamentals or basic pointers that need to be followed. There is no need to complicate things, just be simple and stick to the fundamentals.

It is okay to explore other options in the forex market but in the long run what matters most is that the trader ensures the price matches with his margins. This ensures security and the probability of losing money becomes low.

Establish a Reasonable Strategy

Every individual with a desire to venture into any type of business must always have a strategy. This also applies to the forex traders. The trader must lay down a reasonable and attainable strategy that is manageable and easy to achieve. It is also advisable to have a bigger picture of the strategy and see if it can stand the test of time.

This way, it would help the trader know whether to finally invest in the forex market or not. It is also not about having a key to success or money management but the trader has to learn how to be defensive hence creating a strategy.

When coming up with a strategy, it is important for a trader to learn the market price pattern which gives you a trading perspective on which to base your strategy.

Be Disciplined

Discipline has always been known to be one of the key elements of success. Every forex trader whether an amateur or a professional must learn to discipline himself within the rules of trade. Learn about risk management and be able to stop loss orders on every trade that you make.

It is also advisable to obtain the amount of money you are willing to lose in every trade you make. Once you have established the above, compare it to the total liability then you can fully venture into the forex business.

It is possible for a trader to have a great strategy but without patience and discipline and a firm stand during the losing moments, you can never win.

Be Knowledgeable

Most traders enter the currency trading with little or no knowledge at all about the forex market yet they put higher expectations on what they want in return.

That is why a simple loss finds some traders unawares and their emotions run higher than their initial goal of engaging in forex. An amateur trader often invests time and energy in learning the basics of forex trading and makes a huge return at first.

He then thinks he is a professional and ventures into the more sophisticated techniques and methods of trading without prior knowledge. This leads him into a huge loss that leaves him frustrated, tired and maybe poorer than when he began.

It is not a bad idea to venture into sophisticated trading because a trader gains experience but it is important to gain prior knowledge before going into it fully. It is not just knowledge about the forex market but also risk management and money management.

Summary

K.I.S.S, keeping it simple and stupid in the forex market is all about the simplicity you put from the moment you decide to invest in currency trading to when you strategize and finally to the time you execute your strategies.

The K.I.S.S process is known by many but it is seldom practiced and that is where many traders fail. They say traders who practice simplicity are more successful and those who are sophisticated have more wins but that is not actually the case.

The best traders are those who use successful methods in trading without losing sight of the simplicity that is required in forex trading.

The simplicity in trading, however, is not in born. It takes a lot of time, dedication and energy coupled with prior knowledge, experience and, market understanding in order to finally be able to K.I.S.S it in forex market.