If you want to win with your FX trading strategy make sure it contains these key elements otherwise you will be doomed and join the 95% of losing traders.
1. It must be Your Strategy!
Don’t fall for the hype that some junk robot will give you success or a guru or mentor there are plenty sold online with huge profits in simulation but they don’t work – no one gives you something for nothing and forex trading is no different.
Even if you have got the forex education from someone else, you must understand it and have confidence in it so you can follow it with discipline – discipline is the key, you must be able to ride out losing periods and wait until you hit a home run.
If you don’t have confidence you will never be able to do this make sure you have it.
2. You Must Understand Your Edge
Your trading edge is the reason you will win when 95% of other traders lose and you must have confidence and understand what it is and it must be based on sound logic.
Many people think they have an FX strategy based on sound logic and do the following and lose.
- They try and predict market prices
- They follow bogus scientific theories
- They trade news stories
- They day trade and try and scalp
- They follow experts
All the above will see you lose if you don’t know why, continue your forex trading education until you do.
Your trading edge is something that is personal to you and can be based on a simple forex trading strategy you can execute with discipline – that’s enough, remember simple systems executed with rigorous discipline work!
3. Play Defence First
When you are trading on leverage you need to trade great defence first and always protect what you have this means rigorous money management rules and money management is much more than placing a stop!
If you don’t keep your losses small you will get wiped out – sounds obvious?
Well most traders don’t heed it and use leverage of 200 or 300:1 on a few hundred bucks, 10 or 20 is enough.
Forex trading can make you a lot of money but if you expect not to have to work your in for a rude awakening.
Do your homework, get confident and make sure you have the discipline to stick with your FX trading strategy and follow it through drawdown periods, to long term success and the rewards if you can do this are huge.
By: Kelly Price
Posts Tagged ‘Forex Trading Education’
Learn to Trade the Forex
March 15th, 2010
What are the rewards of Forex investing over any other types of investments? When thinking about a variety of investments, there is one investment opportunity that really stands out and that is The Forex or Foreign Currency Market. The advantages of forex trading are as follows:
1.The Forex market is open 24 hours, 7 days a week around the clock. This is the opposite of stock markets.
2. Investments usually require a lot of upfront money, with forex trading you only need a very minute amount. Learn to trade the forex will cost you less than $300.00. For $300 dollars you can create small account that will let you trade numerous amounts of 10,000 units. 10,000 units equal 1 contract and each pip which is a move up or down in the currency pair is worth a $1 no matter if it’s a gain or loss. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
3. The Forex market is also very liquid which is why the forex system is amazing. Forex trading education will suite you well in this situation.
4. Many other types of investments require investing your hard earned money for a long long time. This is extremely ghastly because if you need to use any of your money you will pay a huge penalty.on your money for long periods of time.
5. Forex traders can be profitable in any conditions and unlike stock markets because you do not need stock prices to rise in order to take a profit. Forex traders can make a profit at any point in time no matter how the economy is doing. Forex Trading can be uncertain, but with having the ability to have a high-quality system to follow, good quality money supervision skills, and having self discipline, learn to trade the forexc an be a fairly low risk venture.
6. The Forex market can be traded at any time and from anywhere. All you need is access to the internet and a computer, nowadays you can trade over your cell phone! It is so simple and so worth any investment. There are many forex online trading systems and forex ebooks out there on the internet which some will give you a free coarse and a “mock” trading system which will be almost like the real thing but for play money just so you can get a feel on how currency trading works exactly. Don’t be shy, the internet has so many courses to learn at such as the forex trading robot, you just need to be carefuel when you choose one to purchase for real hard earned money. Once you learn the forex trading system the sky is the absolute limit. There is no telling how much money you could make and how soon you could be doing this for a permanent living. You wanted to work from home right? Oh with forex trading you do not need to travel 2 hours a day and work a 9-5 dead end job your whole life. In whatever you decide to do, I wish you the best of luck!
By: John Callingham
