You want to know the real secret to day trading forex currency? Well, here it is: Confidence and understanding of the market. There you go. There’s your real holy grail. If you can accomplish these two feats then you can write your own paycheck. Happy? Ok, so you probably need a little more information. Fine. Here it is:
Confidence! I cannot begin to tell you how many forex traders in the world are having anxiety attacks watching their trades just as I am typing. If you can’t handle a trade or trading or in general, then don’t do it. You’ll never have success day trading forex currency if you are watching every pip move like it’s life or death. Emotions can destroy a trader. A trader’s fear can cause him/her to hold a trade even though the obvious trend is going against them. It could also have the adverse effect in which a trader closes a trade WAY too early because he’s afraid to hold it, even though all the signs are pointing in the right direction.
I could give you the greatest trading system in the world, but it won’t do you much good if you don’t have any confidence in trading it.
The understanding of the market goes hand in hand with the confidence. When I say understand, I mean just that: Understand what you are looking at. Don’t be like everybody else who has to use indicators to tell them what the market is doing. Does anybody understand what these indicators even mean? Can you honestly tell me what using an MACD Divergence does? It’s colorful and its pretty on a chart, but what does that have to do with the tea in China? Take the time to understand the underlying causes of price and market movement.
Take off the indicators on your charts and see if you notice some repeated patterns. If you can start to see them then you can be ahead of the other 95% of forex traders who end up losing money on the markets. After all how can you have confidence day trading forex currency if you have no idea what you are looking at.
By: Jim Buhs
Posts Tagged ‘Buhs’
The Real Secret to Day Trading Forex Currency
February 9th, 2010Is it Possible to Be a Forex Millionaire?
January 26th, 2010
Well, of course it is! There are new forex millionaires everyday. The bad news is that 95% of forex traders fail to even make money. So the chances of you just making money trading forex are against you, much less becoming a millionaire. So what’s the secret? Why is it that so many people fail and so few succeed.
Well, lets take a look at this logically. When so many people are failing at trading forex, why not just trade the way the successful traders do? I know that sounds like a no-brainer, but why is it that so many traders don’t think about that? The majority are using the same lagging indicators that have been proven to show no forecasting benefits.
If there is one major contrast between the pros and amateurs, its that the majority of the pros don’t need all the bells and whistles that the amateurs just love. If you read many trading journals, magazines, newspapers, you’ll notice most pros mention they don’t even use indicators. They solely rely on price action to tell them when to buy and sell a currency. To those that have only traded with indicators, this may seem like a strange method, but it’s really one of the oldest forms of technical analysis and has been traded successfully way before stochastics were even invented. People like Jesse Livermore became trading legends in the early 1900s by being on the market floor and trading based on the movements of the price. He didn’t even have the privilege of looking at a chart.
So it is most definitely possible to be the next forex millionaire. All you have to do is stop following the herd and learn how to properly read the forex market.
By: Jim Buhs
