Wednesday, July 08, 2009

What Successful Forex Traders Already Know

Forex Nitty Gritty
Most Forex Trading "Robots" Don't Work

Most auto trade "robots", "expert advisors", or "black box" systems don't work over the long haul. Sure they look great on paper, but that's because most of them are "curve fit" and programmed to work with historical market data. Think about it: if these "robots" really did what they say they could, don't you think your broker and everyone else on the planet would be using them 24 hours a day? As a successful trader, you don't even consider these gimmicks.

There Is No "Holy Grail" of Forex Trading

As soon as you realize that in order to get ahead in the Forex markets you WILL have losing trades... you're on the right path to becoming a successful trader. Instead of trying to predict the future, which is impossible; you, as a successful, independent trader know that all you need to do is put the odds in your favor on every trade. Then, predicting the future doesn't matter, and you have everything in place you need to come out ahead.

Blindly Following "Red Lights" & "Green Lights" Is A Surefire Way To "Get POOR Quick"

If you think you can "get rich quick" buying Forex pairs when a light turns green on your computer, and selling them when it turns red... think again. As a successful trader, you understand the underlying reasons behind your decisions, which gives you way more power and flexibility than blindly obeying a blinking light like a mindless lemming.

Your Broker Doesn't Care About You

Let's face it. You and I both know that your broker is a salesperson. The bottom line is that the more trades you place - win or lose - the more money your broker makes. With Forex, the broker's cut is called "the spread", and sometimes they'll try to fool you by telling you they don't make a "commission". Don't be a sucker. It's the same thing. As a successful trader, you know to place only those trades which give you the maximum amount of potential, and the minimum amount of risk.

Having To Spend Long Hours Trading Forex Is A Myth

Most traders think that in order to make the most money possible trading Forex, they need to stare at their computer and trade all day long. But most traders are not successful. I've found that the more time you spend trading, the worse you do... and that's because you begin to sabotage your trading decisions due to burnout, fear, and greed. Not to mention that you end up not "having a life". As a successful trader, you know that to maximize your results, you should spend no more than 20 minutes a day placing trades... so that you have the rest of the day to spend with your friends and family doing the things you truly love and enjoy.

Waiting For The Economy To Recover Before Trading Is A BIG MISTAKE

Many traders, especially beginners, wait for the media - or their stock broker - to tell them the market or economy is safe before placing trades. This is nonsense. The general state of any markets - stock, forex, whatever - and the current condition of the economy has nothing to do with your potential success trading Forex. As a successful trader with specific rules that tell you what to do (no matter what happens in the markets) you know that the key is controlling risk and when you control risk you have the potential for profit whether the markets move UP or DOWN. It's awesome.

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