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Trading is this Simple? Finally Explained simple and clearly!

  • #1
  • First Post: Edited 8:53am Jan 19, 2021 7:28am | Edited 8:53am
Please tell me if I'm correct. I'm not a professional trader.

I see too many methods and systems just encouraging follow the indicators and not telling WHY. So I'm going to tell what I understand so far.

This is how trading really works.

Basically you Buy in at a good price, known as the pullback or the dip. Literally when price dips below the average price.

So if the daily high is 10 and the daily low 3 you want to buy when price dips to 3 and sell or short when price reaches 10.


You are basically buying things at a good price. If you go to a thrift store and see a brand iPad selling for lower than the average price you buy.

When it is higher than average you sale.

Price is driven by people selling and buying. Once it is bought too much it is overbought,buyers drive the price up. selling too much drives the price down.

So you buy oversold signals to get a good price and sell when it overbought because the price is high.


The indicators that calculate overbought and oversold are CCI and Stoch and I think the RSI but not to sure on the RSI.

Then you can also use a moving average. when Price is below the average it makes sense to buy when it is above the average price it makes more sense to sell.

Combined with an overbought or oversold indicator you can identify good places to enter the market.

Last and not least... the TREND is your FRIEND.

When a price it trending means it keeps hitting a certain price, like trendy clothes. Everyone wearing a similar style of clothes. The prices keeps hitting a similar price range.

A Uptrend is when the market is trending at a price then GOING UP a certain amount. The trend is increasing little then going down.

A Trending market is Key to trade in because the market is moving up and down in a predictable way ( according to the trend). Usually in an "ABCD" format to a "123"

I'm still fairly new to this , can you all fill in the blanks to this system? What are the right indicators of the trend? What are the best indicators for overbought and oversold? What are the best moving average indicator.

How do you find the daily high and lows?
  • #2
  • Jan 19, 2021 7:56am Jan 19, 2021 7:56am
Quoting hworang
Please tell me if I'm correct. I'm not a professional trader. I see too many methods and systems just encouraging follow the indicators and not telling WHY. So I'm going to tell what I understand so far. This is how trading really works. Basically you Buy in at a good price, known as the pullback or the dip. Literally when price dips below the average price. So if the daily high is 10 and the daily low 3 you want to but when price dips to 3 and sell or short when price dips to 3. You are basically buying things at a good price. If you go to a thrift...
Unfortunately trading Forex market doesn't work (i.e., to be profitable) like that simple...
Trading is the hardest way to make easy money...
  • #3
  • Jan 19, 2021 8:12am Jan 19, 2021 8:12am
Quoting hworang
Please tell me if I'm correct.
You are wrong.
Indicators are lagging. Price Action reflect the truth.
Supposing you get good trading knowledge you need to pass the last barrier: yourself. And majority fail at last barrier.
Money moves the market, not an indicator.
  • #4
  • Jan 19, 2021 8:24am Jan 19, 2021 8:24am
Quoting andoseg2
{quote} You are wrong. Indicators are lagging. Price Action reflect the truth. Supposing you get good trading knowledge you need to pass the last barrier: yourself. And majority fail at last barrier.
there you go speaking in greek riddles again. This is post aimed a simplicity. But after thinking about what your saying I think I get it.

Indicators lag behind in demonstrating true price action? Price action means what the indicator is suppose to be looking at.
  • #5
  • Jan 19, 2021 8:43am Jan 19, 2021 8:43am
'Please tell me if I'm correct.'
No, you are not correct

'I'm not a professional trader.'
Successful traders study the market not trading strategies.

'This is how trading really works.'
No, this is not how it really works...not even close.
  • #6
  • Jan 19, 2021 8:46am Jan 19, 2021 8:46am
Quoting GEfx
'Please tell me if I'm correct.' No, you are not correct 'I'm not a professional trader.' Successful traders study the market not trading strategies. 'This is how trading really works.' No, this is not how it really works...not even close.

You are bringing up problems without giving solutions, these are all classical examples within the world of currency trading, and are serveral fundamental ideas of trading until you can prove otherwise. All I said basically was Buy the dip and follow the trend.
  • #7
  • Jan 19, 2021 8:49am Jan 19, 2021 8:49am
Quoting hworang
Please tell me if I'm correct. I'm not a professional trader. I see too many methods and systems just encouraging follow the indicators and not telling WHY. So I'm going to tell what I understand so far. This is how trading really works. Basically you Buy in at a good price, known as the pullback or the dip. Literally when price dips below the average price. So if the daily high is 10 and the daily low 3 you want to buy when price dips to 3 and sell or short when price dips to 3. You are basically buying things at a good price. If you go to a thrift...
I like your simple approach; unfortunately though, FX is not that simple. Why? Because if you do things the normal way; you have to buy at a level, after which the price will not reverse to HIT YOUR STOP! You also have to take profits at a level that you are reasonably sure the price will reach BEFORE IT ULTIMATELY REVERSES..

So, youre trying to guess 3 correct prices for every trade: SL, Entry & TP!

If you make a mistake with any of those, you could lose..
  • #8
  • Jan 19, 2021 8:54am Jan 19, 2021 8:54am
Quoting Thoughts
{quote} I like your simple approach; unfortunately though, FX is not that simple. Why? Because if you do things the normal way; you have to buy at a level, after which the price will not reverse to HIT YOUR STOP! You also have to take profits at a level that you are reasonably sure the price will reach BEFORE IT ULTIMATELY REVERSES.. So, youre trying to guess 3 correct prices for every trade: SL, Entry & TP! If you make a mistake with any of those, you could lose..

Take profit should be whenever you are in profit my mentor says around at 25%. Key is to not get greedy..
  • #9
  • Jan 19, 2021 8:58am Jan 19, 2021 8:58am
Quoting hworang
{quote} You are bringing up problems without giving solutions, these are all classical examples within the world of currency trading, and are serveral fundamental ideas of trading until you can prove otherwise. All I said basically was Buy the dip and follow the trend.
If something is a problem it's not my fault nor is it my problem. I'm not here to give you solutions. And I understand what you said, I'm just saying that you are wrong. Do you understand why a market trends? Do you understand why a market retraces? Do you know why it pulls back? Do you understand the difference between a retracement and a pullback?

Pick any currency chart. Tell me how the market got to where it is today. Tell me why. Show me how the tier 1 traders got that currency where it is today. What are they doing? When will they likely stop doing what they are doing? What events on coming up that may prompt a bank response? Describe the behavior patterns of these bankers? How do their behavior patterns differ from currency to currency? This is all pretty basic stuff.

Sorry to interrupt your search for an indicator or an answer to...what was the question again?
  • #10
  • Jan 19, 2021 9:21am Jan 19, 2021 9:21am
Quoting GEfx
{quote} If something is a problem it's not my fault nor is it my problem. I'm not here to give you solutions. And I understand what you said, I'm just saying that you are wrong. Do you understand why a market trends? Do you understand why a market retraces? Do you know why it pulls back? Do you understand the difference between a retracement and a pullback? Pick any currency chart. Tell me how the market got to where it is today. Tell me why. Show me how the tier 1 traders got that currency where it is today. What are they doing? When will they...

Good. A market pulls back because people are selling. Maybe "whales" people with large amount are selling off. A market trends when certain prices are popular or a certain pattern of price action is popular. I do not know what a market retrace is.


I was looking for exactly what you posted. I want to know WHY we do certain things to better understand what we are doing. Many post here start off with "blindly follow the indicator" And it makes no sense to me. Without it making sense I can't remember what it is I am following on the indicator!

Its hard to learn any method of trading like this. If you can show an example of some of the questions you just posted that would help out a lot.
  • #11
  • Jan 19, 2021 10:13am Jan 19, 2021 10:13am
Yep, you are absolutely right.
Trading is exactly that simple.
All you need is a daily average price (last 24 hrs on ANY time frame or any 2-3-4-5-N days avg price - for less entries).
Locate the trend.
Buy below the last 24 hrs avg, Sell above (according to the trend).
Manage positions when the rate moves against you (this is the hardest part).
Closing at TP is easy, once the counter trend correction is over.

Listen not to anyone here, who tells you you are wrong or anything stupid like that...

Trading is uber simple. It is hard to get to the simplicity...

p.s. You can hedge, if you like, helps in the CT movements, lowers down the draw-down (also the profits, but the account equity stays better protected). Open hedges in 3:1 for the trend? And not before the break even point (the zero point for the trade or the batch). Might take you some brains to figure out the hedges, but it is not hard, in general.
Maadik Hugiis. IQ 69.
  • #12
  • Edited 3:05pm Jan 19, 2021 2:40pm | Edited 3:05pm
Quoting hworang
Please tell me if I'm correct.
So I'm going to tell what I understand so far.
Last and not least... the TREND is your FRIEND.
As I have noticed there are several methods of trading.

Trend is your friend. Very good method, but you don't know when the trend starts and you don't know where is ends. Best of the best is LauraT and her thread. Really working approach. I think this is the only one really working strategy.

Reversals/swings. Good. Great. Love it. Here you can find RickM - he is absolutely genius here. The most strange thing happened to me is when I found that there is another one trader who trade/think exactly same way I do. Hope to have him as a friend to share/build.

All other stuff like let's use renko, heikin, bb, RR 1>1, tight SL, always SL, "I was out for coffee that's why I picket only that great entry and missed 20 wrong entries" and "I'm trading 30+ years manually because I feel the market and want to share my great strategy here" - don't waste time for that.

Also all that lovely - you have to beat yourself first. You have to be very ... very ... very ... You you you... You have to be like a robot? But robots can't win the game? Yeah. Okay. Let's ride horses and try to beat tesla.

Last but not least. Most people for example blame moving averages for lag. Serious? AVERAGE price can LAG? AVERAGE? OOOkay. Then let's add stoch and rsi together on the chart. Why the world not? Let's add electronic and mechanic speedometer. To see/check what? The same speed? That simply trigger that they just don't understand how the indicators works, how they calculate and what is the purpose to use them. They can't understand the difference between trend indicators and oscillators for example.

This is not good and not bad. This is just life. "What is your winrate of that indicator?" - when you see that you can click "ignore" and you will never miss a thing.

And of course luck and magic everywhere. Look at the TMS thread! There are 10 years everyday-in-a-row LUCKY entries.

Me approach is that:
1. Avoid word "simple". Trading is not simple.
2. Trend is not your friend.
3. There is no luck and magic around. Only hard work. Study math, not magic.
Observer effect
  • #13
  • Jan 19, 2021 11:32pm Jan 19, 2021 11:32pm
Quoting MoneyZilla
Yep, you are absolutely right. Trading is exactly that simple. All you need is a daily average price (last 24 hrs on ANY time frame or any 2-3-4-5-N days avg price - for less entries). Locate the trend. Buy below the last 24 hrs avg, Sell above (according to the trend). Manage positions when the rate moves against you (this is the hardest part). Closing at TP is easy, once the counter trend correction is over. Listen not to anyone here, who tells you you...
What if its not trending but very violate like bitcoin.
  • #14
  • Jan 19, 2021 11:42pm Jan 19, 2021 11:42pm
Quoting hworang
Please tell me if I'm correct. I'm not a professional trader. I see too many methods and systems just encouraging follow the indicators and not telling WHY. So I'm going to tell what I understand so far. This is how trading really works. Basically you Buy in at a good price, known as the pullback or the dip. Literally when price dips below the average price. So if the daily high is 10 and the daily low 3 you want to buy when price dips to 3 and sell or short when price reaches 10. You are basically buying things at a good price. If you go to a thrift...
Do you have a working system or are you looking for inspiration?
  • #15
  • Jan 20, 2021 12:39am Jan 20, 2021 12:39am
Quoting hworang
{quote} What if its not trending but very violate like bitcoin.

Don’t have enough money to trade bitcoin. Used to check BT chart with gold’s settings and could not find any difference in the price app behavior. Gold, BT, any FX pair, they are the very same thing. The price app moving sequence is exactly the same everywhere. It is just a matter of cash, which one can one allow to trade?

btw, my brother has 4 BTs, but he does not really remember the password. Back then, when BT was around $200, he did propose we buy 100-200 BTs? I did reacted as he was completely lost his mind. Was furious. Looking at his current password issues, I still think I was right... hahahaha
Maadik Hugiis. IQ 69.
  • #16
  • Jan 20, 2021 2:59am Jan 20, 2021 2:59am
Quoting MoneyZilla
{quote} Used to check BT chart with gold’s settings and could not find any difference in the price app behavior.
You are right. The only difference I have noticed between currency pairs and gold/btc is that if you trade reversals/swings (not a trend) is is less risky with currencies. Just because there are no top and bottom with btc. For example it can be 100000$ tomorrow or 200$. And unstoppable trend will smash you. But GBPUSD can't be 0.15 or 5.0 tomorrow. On the other hand since you are using hedges gold and btc are better, because of bigger price movement amplitude.
Observer effect
  • #17
  • Jan 20, 2021 11:02am Jan 20, 2021 11:02am
Indeed Trading is simple you just need to pull some line, place some indicator. But in order to do that you need to learn lot of things. like some technical stuff (Candlestick, Fibonacci, Price Action, Chart Pattern) and a few fundamental (I'm not rely on this but some news are good to go).

Last but not least after you read and learn all of that, you must find your own trading style and conqueror your trading psychology.

Thats all
Become ambassador of happiness, Follow with your own risk
  • #18
  • Jan 24, 2021 1:39pm Jan 24, 2021 1:39pm
New traders need a lot of support. New traders need a lot of help on how to select a broker, how to analyze, how to manage risk. Newbie traders are ignorant about trading when they join trading. And to turn this ignorance into experience, a lot of cooperation is needed.
  • #19
  • Jan 25, 2021 4:26pm Jan 25, 2021 4:26pm
Quoting hworang
Please tell me if I'm correct.
Hi hworang,

Let me answer You in few points.
First of all trading is as simple as little is the pain that You have when price changes not in Your desired direction. If You are overleveraged then simple things, like temporary move "against you" is massively complicating your simple strategy.
If the leverage you use is small enough, then you don't care if you need to wait a little bit more - important is only to be profitable after all.

Another important thing is that everybody is able to say historically on the chart where the price was low and where it was high. Very few people are able to say where the price will be cheap and where expensive in a quite near future. People who trade markets know, that even if the price is low it can be much lower and the same if price is high, than still it can be much higher.

You are right that on forums there are lots of "simple" strategies that are in fact simple paths to catastrophy. Same master strategy for trending market will blow up an account when market turns sideways without significant cause.

Best Regards,
  • #20
  • Jan 25, 2021 5:02pm Jan 25, 2021 5:02pm
Surgery is simple. All you need is forum thread, youtube and knife. Don't make it too complicated. Cut!
Observer effect
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