As part of your forex education I am going to give you some points which will indicate whether you have what it takes to win so check the points carefully before you start to trade, as understanding them could save you a lot of money.
First if you agree with any of the statements below, sorry you’re probably going to lose.
– Forex scalping, day trading or short term trading is a great way to make money
– Forex robots with simulated track records are likely to win
– Markets move to a scientific theory and you can predict what will happen next
– News stories if traded quickly are great way to win
– Complicated strategies are far better than simple ones
– My money management is easy – I just place a stop
– Forex trading relies on just have a profitable system- discipline is easy
– I enjoy trading with the majority and consensus
– To win with forex trading signals getting trend direction right is all you need to do
Any trader who believes the above statements will be wiped out.
Forex trading looks incredibly simple and anyone can learn yet 95% take a wipe-out of equity, while the savvy 5% clean up in terms of profit so what do they believe and what makes them successful. Here are some typical statements which apply to winners
– I trade longer term as this puts the odds on my side
– I trust my own judgement and no else’s – I realize success relies on me alone
– Currencies are an odds game and you need to be patient to wait for high odds trades
– I don’t trade news and what be I use forex charts and trade the reality of price
– I have a simple strategy as its less likely to break in the market
– My money management is based on my overall account equity
– My forex system will not be profitable unless I Execute it with iron discipline
– I am a loner and trading and neither give or seek advice
– I Realize picking trend direction can be easy but volatility is the problem of turning it into profit
Forex trading is all about being on your own and trading in isolation and having a simple system, strict money management and a mindset to apply it with discipline through long periods of losses, to hit home runs and become a winner.
You don’t need to be clever and you don’t need work hard to win but you do not to be disciplined and work smart. Forex is a unique combination of mindset and method which if you get it right and understand the above your forex trading strategy can be the route to financial freedom.