You should not trust those who try to make you think that Forex trading is too complicated, and also those who say that it is dead easy. None of them are true.
Like any other business, Forex trading has its own complications. Becoming a consistently profitable Forex trader cannot be achieved overnight. It needs some time, effort, patience and discipline. These are the success factors that can be found in everybody, but not everybody is enthusiastic and serious enough to use these factors properly to become a consistently profitable trader finally.
On the other hand, Forex trading is not as complicated as some people say. As I mentioned, it has its own complications to become a consistently profitable trader, but it is not impossible. You don’t have to be genius to become a good Forex traders. It is like the other businesses. You don’t have to be genius to become a good teacher, doctor, engineer, driver or baker. You just need to start from the right place and follow the right track, and spend some time and energy to learn and practice.
Most people think that in order to become a good Forex trader, they have to know everything about the currency market and technical analysis. Therefore, they spend a lot of time to read too many articles and books, while they don’t know that what they need to know to trade Forex successfully is much simpler than what is written in books. It is good to have a strong knowledge background, but theoretical knowledge or even knowing too many techniques doesn’t make you a successful trader who is consistently profitable.
The question is what makes so many novice traders to spend a lot of time on learning new things every day? Why do they think that they have to know a lot? Why do they believe that what they know is not enough yet?
It goes back to a wrong belief. Most people think that in order to become able to trade Forex properly, they have to be able to “predict” the future price movements. Therefore, they spend several years to learn to predict the price movements. But they don’t get anywhere, and they think they have not yet learned enough and still they have to keep on learning. And God knows when they will become able to predict the price movements.
That is one of the important reasons of traders failure.
The truth is, in order to become able to trade Forex profitably, you don’t have to be able to predict anything. Indeed, it is impossible to predict anything in this market, and also in any other markets. All we can do is that we learn a simple and strong trading system first, and then we know the too strong trade setups based on that trading system. Then, we have to wait for the too strong trade setups to form. If so, we enter the market and set the stop loss and target orders. That is all. We never know what will happen after that. We don’t have to know. If the price moves according to the trade setups and hits the target, that is great. If not, then we will be out with a small and controlled loss, but we take the advantage of the next trade setups that hopefully will hit the targets.
That is all we have to know and do. We don’t have to know anything more than this. It is as simple as that.
Most traders never become profitable, because they think Forex trading has to be complicated. They believe something that makes a lot of money has to be too complicated too. But they don’t know it makes money only when they keep it simple.
According to this, do we have to know about the news and fundamentals, and tools like Fibonacci and…?
No, we don’t have to. As I mentioned, all we have to do is that we wait for the too strong trade setups that form based on the trading system we follow. If you see we also learn and follow the news, and we use things like Fibonacci on our charts, it is because they can help us to take the too strong trade setups, get ready for them, and manage our positions better.
So…
Do we enter the market or set pending orders when a too strong news is on the way or becomes released?
No, we don’t. We enter the market only when a too strong trade setup forms.
Do we enter the market when the price reaches one of the strong Fibonacci levels?
No, we don’t. We enter the market only when a too strong trade setup forms.
Source - http://www.fxkeys.com/what-do-you-have-to-know-to-become-a-successful-forex-trader/