As part of your Forex education I am going to give you some points that will show if you have what it takes to win, so review the points carefully before you start trading because understanding them can save you a lot of money.
First, if you agree with any of the following statements, I’m sorry you’re likely 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, when acted quickly, is a great way to win
– Complicated strategies are much better than simple ones
– My money management is simple – I just make a stop
– Forex trading relies only on having a profitable system – Discipline is easy
– I enjoy trading with majority and consensus
– To win with forex trading signals, all you need to do is find the right trend direction
Any trader believing the above statements will be wiped out.
Forex trading looks incredibly easy and anyone can learn it but 95% will take equity wipe out 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 that apply to winners
– I trade longer term as this has the odds on my side
– I trust my own judgment and no one else’s – I realize that success depends only on me
– Currencies are an odds game and you must be patient to wait for high odds trades
– I don’t trade on news and whatever, I use forex charts and trade on the reality of the price
– I have a simple strategy as it is less likely to break out in the market
– My money management is based on my total account balance
– My Forex system will not be profitable unless I run it with iron discipline
– I am a loner and trader and do not give or seek advice
– I realize that picking a trend direction can be easy, but volatility is the problem in converting it into profit
Forex trading is all about trading on your own and in isolation, and having a simple system, strict money management, and a mindset to apply in a disciplined manner over long losing periods to hit home runs and become a winner.
You don’t have to be smart or work hard to win, but you don’t have to be disciplined and work smart. Forex is a unique combination of mindset and method that if done right and understanding the above, your Forex trading strategy can be the path to financial freedom.