In principal, trading forex is same as any trading form in this world. The basic strategy is buy at low and sell at high. But why this simple strategy is so hard to do? Because nobody can control the market. High and low are decided by conclusion and psychology level from all traders in this world. The basic economic law about trading is there must be a balance between supply and demand. When a resistant level of price is broken, the balance is changing.

Why we must think like a real trader? Because trading forex is same as like any trading form in this world. In real life, real trader acts in same way. If an item is too expensive for him, he would not buy it. He will wait until he feels the price is acceptable and profitable. And of course, when an item is too cheap, he would not sell his item because he will lose his money. This very basic formula is also very basic trading psychology for man.

Many beginner traders act just like they are professional. They think that they could control the market. So, when the price is rather high they will follow with all their money, thinking that price will go higher and higher. The wise action is analyzing the movement. Remember the basic economic law. When price is high, the demand will reduce and the supply will over. But when it is low, demand will rise and supply will reduce.