Recently, I have received a lot of questions from people who want to learn how they can trade the Forex markets profitably using the best Support and Resistance trading strategies.
Today you are lucky because in this article, I am about to discuss all the pros and cons of developing your own Support and Resistance Forex trading system.
One thing that every new Forex trader should understand is that:
It does not matter whether or not you are trading the Forex markets using Fibonacci Forex trading systems or Support and Resistance trading strategies.
The most important thing that differentiates 1% of the successful traders from 99% of the unsuccessful ones is the thing called Forex trading psychology.
This include all the things every successful Forex trader need to do before, during and after he pull a trigger to open a trade.
Here are some of the questions he or she needs to answer to ensure that he is mentally ready to develop his own support and resistance Forex trading system:
Is he discipline enough to follow his or her trading plan, without been easily swayed by big name Forex Gurus out there?
Is he always trading with a trading stop-loss and follow his strict money management plan?
Does he knows in advance how much he is prepared to lose, if the trade goes against him.
Is he discipline enough to stop trading after he or she managed to reach his daily, weekly or monthly target?
Does his trading plan, also clearly define, what to do if the market goes against you and how much money you are prepared to lose?
Now let me explain what is Support and Resistance trading Levels?
At Support level, assuming that the market is trading up for example, there are more buyers than sellers whereas at resistance level there are more sellers than Buyers.
Every time when the price comes closer to these levels, it will try to break them. If it succeeds to break the resistance level for example, next time when it comes back to it to test that broken resistance it will act as a new support level.
The opposite is also true when it comes to a broken Support level as now it will become a new resistance. In order to be profitable Forex trader all that is required from you is to be discipline enough by trading your favorite systems following some strict money management plan.
It is now time for you to go and create your own profitable Forex trading system that will be mainly based on Support and resistance levels using the information you learn about in this article.