Successful TraderTrading may be quite a complex method for some people. But it may actually come to knowing the simple basics that actually matter the most. As some traders get the feel of trading in various markets, they also seem to be bombarded by various other trading strategies based on complex indices and indicators. Although some of these might be quite accurate, the complexities may sometimes mislead you into taking the basics into consideration. Even with complex trading strategies, they can only be as successful with the positive results that they can provide.

Simple Or Complex

A lot of traders are being led to believe that complex trading strategies employing a number of complex factors and indicators may seem a better method to follow than simpler ones. It may somewhat look logical for traders that the more information being factored into a trading system, the more reliable it becomes. But traders should also bear in mind that logic does not work all the time in the market. Sometimes the results that come out may defy logic and this might defeat the purpose of the complex trading strategies being reliable most of the time.

Price Eventually Matters

No matter how complex some trading strategies are, it all boils down to one thing- price. After all is considered and analyzed, it all matters on the price changes. Focusing on the price and its movement may be the simplest thing that would provide the trader with a real means of creating profits if he knows how to properly gauge this all important trading factor.

Focus On Range

Another simple take to trading would be to focus on price tendencies of a given stock within a specific time period. Traders can focus on the average daily range, most especially during the last 20 trading days. To get the average daily range, high price during the day is subtracted by the low price. To get the percentage, the result is simply divided by the open price of the stock.  It is simply adding up the percentage moves each day for a period of 20 days and then dividing the result to the same number of days to finally get the average. 

Trading need not be based on complex methods and strategies in order to be successful. All it requires is for the trader to have a good feel of the market and knows the basic factors that affect prices and their movements. Being able to make the timely decisions is based mainly on this idea no matter how complex some trading strategies might be.