How to Win with Forex

How to Win with Forex

When 95% of traders lose money, what makes you think you can win? To see your chances

of succeeding as a forex trader, here is a checklist for you to see and become one of the elite

traders, who make tremendous long term profits.

Following are a few ways to lose money. You may wish to change your mind immediately if

you are thinking of trying any of them. Do this to avoid losses and continue your forex

education!

1. Following a Forex Robot with Simulated Gains - You can apparently achieve success

without any effort as promised by these. You are asked to accept their track records

simulated going backwards. Your equity will get destroyed by trying them.

2. Day trading and Scalping - Due to the random short term volatility, simply doesn't work.

Like the robots, even people selling these always have simulated track records.

Many more of these all fall into the category of trying to find someone else to give you

success. This does not work in forex markets.

Apart from needing a trading edge, you also have to understand ways and reasons of it

leading you to success. Let’s look at this in detail.

Success Comes From Within

The combination of a simple robust helping you to understand and trade with discipline is what

forex trading is about.

You need to know what you are doing to trade with discipline. This translates into having

confidence, which you definitely don't get from someone telling you what to do. You get

confidence by from your own knowledge and learning.

Discipline & Losses

As you have to keep executing trading signals through losing periods, discipline is hard. This has

to be continued till you hit a home run, even when the market is fooling you and taking your

money.

A Trading Edge

What separates out your forex trading system from the 95% losers is your trading edge. You can

answer what is your trading edge and how will it help you beat the majority. You don’t have one if

you don't know what it is.

Few succeed in the simple looking forex trading. These elements are present in the winners’

forex trading strategy:

Using simple robust forex trading system

- Having solid grounding in the basics of forex trading

- Knowing exactly why their system will lead them to success

- Having confidence and discipline to stick with their plan

- Knowing only they are responsible for their Forex trading success

You have to stand alone, be confident of your actions and be disciplined to follow your plan in

forex trading.

Success is in YOUR Hands

Sounds simple, however it is actually depends on your approach to forex trading - with the right

mindset and getting right education. The trader beats himself, rather than the market beating the

trader in forex trading.

Learn the basic fundamentals, get a suitable system, become confident, get an edge and be

disciplined. Do all of these to enjoy currency trading success.

Dangers of Getting EmotionalAbout Forex Trade

Getting emotional in the stock market is the worst thing that can happen to investors. The same

goes for Forex traders as well. Seeing paper losses in everyday trade is pretty common.

Once to take a decision to buy something and make losses, you still hold on even if situations

turn from bad to worse, only because you feel that things might turn back in your favor once

again. The main problem here is that, the decision to stick to a losing trade for a long time is an

emotional one, since you are in no mood to accept a loss and get out of the trade.

Forex market is largely influenced by the general market and you must always trade on what the

indications based on the market are, and not just initiate one since your heart tells you to. At

times, you might be so emotionally attached to a given currency in the Forex market, that most of

your exposure to the Forex market would be in that particular currency.

Nothing wrong with it, as if you have reasonable grounds to believe that the currency will do well,

then you will actually profit from the exchange. The ‘wrong’ thing is opening up a trade in a

currency just because your heart tells you to.

In the case, if you strongly feel about any given currency, then it’s better to check the reality by

having the look at what the market is indicating. That will give you a clear picture of whether or

not you should trade in that currency.

The basic thing that is needed to be remembered is that once you have initiated a trade, and are

incurring paper losses, and by all indications, things are likely to get even worse for you, then it is

much better to book losses and come out of it rather than sticking to it till a time you ultimately are

able to see some gains from it. Remember, the markets have little room for emotions.

Forex trading is not a win-win situation. Be prepared to lose on some trades as well. That’s the

precise manner in which the market works. It is not really a question of whether you are right or

not, the fact remains that markets move in an unexpected way and they have a knick of surprising

people when they least expect it. All the fundamentals and even experience may be thrown into

the air when the markets decide to do something.

So just follow the indications that the market gives you. If you feel that after initiating a trade,

things are not going the way you had foreseen, book your losses and get out of it. You can invest

the amount in some other trade and make good gains rather than sticking to your losing trade.