If you want to learn currency trading and what it takes to win then you should make this story part of your essential for ex trading education. In just 14 days ordinary people with no experience learned to trade and make hundreds of millions of dollars. How did they do it?
In the nineteen eighties trading legend Richard Dennis decided to prove that anyone could learn to trade, with the right forex trading system and mindset.
He therefore gathered a group of people together who had no trading experience, who were of all ages, both sexes and of all educational standards. The group was diverse consisting of a security guard, to an actor.
He then taught them to trade forex and after 14 days gave them trading accounts.
This group made $100 million dollars in 4 years and went on to become legends.
So how did they do it -after all 95% of traders lose what made them different?
Dennis knew that the problem with traders is not so much method but mindset – they simply cannot stick to a plan and keep going when they incur losses. So although he taught them a simple method, he didn’t tell them blindly to follow it, he taught them to learn it and have confidence in it.
You cannot have discipline without confidence.
Even when your confident, its hard to keep trading when the market hands you loss after loss and makes you look a fool.
It’s a fact that anyone can learn to trade yet, few succeed and the reason is they either get the wrong information or simply cannot stay disciplined.
Most traders are simply unprepared for the fact that they must execute rules and stay on course when they lose trade after trade and don’t believe all the rubbish you read online, about regular income and 90% accuracy – that’s not the real world.
You can win at forex trading but you must be able to take losses to win longer term.
Most traders simply don’t have the discipline to do this.
We don’t have time to explain all the aspects of trading discipline here but it’s hard to achieve but that’s why traders who can trade with discipline are so successful – Dennis proved it.
The forex trading system used was simple ( essentially a long term breakout strategy) but it was the mindset he taught the traders – to stand on their own two feet, be confident and take short term losses, to seek longer term gains which was so important.
If you can learn a simple forex trading strategy, get confidence in it and apply it with discipline, you can win.
Sure its not easy, but you wouldn’t expect it to be with the rewards on offer.
So if you want to learn currency trading the right way get a simple forex trading strategy and focus on your discipline and remember if you can’t trade a system with discipline you don’t have one!
There are big rewards to be made but your on your own and must have courage, confidence and conviction in what your doing – do that and you can enjoy spectacular currency trading success.
By: Monica Hendrix
Posts Tagged ‘Forex Trading System’
Learn Currency Trading – How Did These Traders Make Millions After Two Weeks Training
March 26th, 2010Forex Market Timing – Using Momentum to Trade for Huge Profit Potential
March 20th, 2010
If you want to get better market timing for your forex signals you need to understand price momentum and how it can get the odds in your favour. If you have not used momentum oscillators before, then its time to make them part of your forex education.
Confirmation
If you simply try and buy low sell high by selling into resistance and buying into support your making a fatal error – why?
Because you are predicting which is the same as hoping or guessing and you don’t get rewarded for relying on hope in any venture, let alone forex trading.
Many novice forex traders think that to win they have to predict – but as we don’t know the future, this is not going to help you make money, you simply don’t have the odds on your side.
If you learn forex trading correctly, you will understand that you need to act on the reality of price, confirmed by momentum oscillators which are leading indicators and can confirm trend changes.
Let’s look at the correct way to use momentum oscillators in your forex trading strategy, so you can enjoy currency trading success.
Momentum & Support and Resistance
For example, when a price gets near to support you don’t just simply buy – you wait for confirmation that price velocity is turning away from the level, by using momentum oscillators.
You’re not hoping or guessing – you’re acting on the reality of price change.
We don’t have time to go through momentum oscillators in detail here (there covered in our other articles) but two of the best are – RSI and the stochastic indicator.
Look them up – their easy to understand and use and all you need to do is watch for simple visual setups.
Momentum oscillators can also help you take advantage of some of the best moves which don’t involve looking for support and resistance to hold but help you spot if it will break.
Momentum and Breakout Trading
If you want to catch the biggest moves with your forex trading system you need to trade breakouts.
The fact is the best market trends don’t start from market lows – they take off from new market highs.
Traders who sit back hoping for a lower entry point – end up just waiting as the trend accelerates and DOESN’T pullback.
Buying a new market high is difficult will it continue or do you get the worst possible entry point?
Momentum oscillators can help you decide.
If you have a breakout on your forex chart supported by rising momentum, chances are it will continue and you should go with the break. If momentum on the other hand is weak, it could be a failed breakout and should be avoided.
It’s all about getting the odds on your side and that’s what momentum oscillators help you do.
Momentum and the Odds
Momentum oscillators can help you time market entry better and also help you stay out of trades that don’t have good odds. If you use momentum correctly, you will increase your odds of currency trading success.
So if you are trading forex keep in mind:
Don’t rely on hoping guessing or predicting – rely on trading the reality of changes in price momentum and enjoy greater forex trading success.
By: Kelly Price
Money Management and Forex Trading – The Key to Bigger Gains
February 21st, 2010
Money management is a bit like sex, we all do it but we don’t talk about it much yet, if you don’t employ proper money management you won’t win. Let’s look at some basics to do with money management.
Money management is the difference between making stellar gains or wiping your account out. Here are some important points to keep in mind when adding it to your forex trading strategy.
Risk & Reward
Risk goes with reward this is common knowledge yet, many traders try to restrict risk so much they actually create it and ensure they lose.
For example day traders think their taking small risks as their stops are close but their 100% guaranteed to lose over time because all short term volatility is random.
The risk looks small but the odds are stacked against them.
Another example of trying to restrict risk to much is trailing a stop to close and getting stopped out by normal volatility and sees the trader get stopped out to soon.
These traders need to make a study of standard deviation of price part of their forex education.
Betting to Win
Just like the successful card player you need to load up your bets on high odd hands and fold losers quickly. When you have a high odds trade denoted by your forex trading system up your bet size.
You here many traders bang on about risking 2% per trade but this is ridiculous for most traders.
For example on $10,000 account that’s $200! How close would your stop have to be?
To close and guarantee your stopped out by volatility.
If you want to win bet 10 – 20% on your high odds trades.
Stop placement
In forex trading most traders like to trade with stops behind support and resistance and you will notice on many occasions how many times a price spikes through the stop in the day and then closes below it.
If you can always use a “stop close” this will prevent from daily volatility hitting your stop in the day session or if you cant keep an eye on the market use “at or in the money options”
Trailing a stop
If you are long term trend following you need to give the market plenty of room to breathe and keep your stop back. Don’t jack it up after a day or so like most traders do – leave it alone. When you have good profits move it behind key support say at 40 day moving average penetrated on a close basis which works well.
If you want to follow long term trends, you are going to have to accept that you will give a lot back at the turning point – but if you get 60% of the major trends you will do well.
Targets
I find stop trailing hard and like to work with a target and get out when its hit.
If the move carries on so what? I am happy, as I got what I want.
In shorter term swing trading, targets are essential as these smaller profits can disappear quickly.
Finally Remember This:
How you deal with risk, will be the difference between you losing or winning at forex trading. Try and restrict risk to much and you will guarantee you lose, but take meaningful risks at the RIGHT time, with courage and conviction and you could enjoy fantastic currency trading success.
Remember the old gamblers saying:
“There’s a time to hold them, a time to fold them and a time to get out of town fast”
Its very applicable to forex trading and money management!
By: Monica Hendrix
