The Truth About Forex Trading

“Trading is not rocket science”, you must have heard this statement a fair few times already. I bet you want to know the real truth about forex trading and how to succeed where most people fail.

Let me expand on that famous adage… trading is simply a game of probabilities. It’s just like flipping a coin where one side is your broker and the other side is you.

The two outcomes most likely to occur are, you lose and the broker wins or, you win and the broker loses. The probability of using the above system is 50/50, a win or a loss.

Thus all the Forex strategies that you may have come across rely solely on probabilities. They are not all-50/50 system, some have a very high rate of success, around 80%+ and some have a smaller rate of success but still provides good return.

Whichever trading system you use, be it pivot points, Fibonacci, breakout, Divergence, swing… always remember that it is crucial to follow the rules. If you are using someone else’s system make it a point to understand all the ‘ins and outs’ of the system and stick to the rules that were laid out to you.

The number one cause of failure for many traders learning someone else’s system is that they try to modify the set-up and bring their own touch to it before fully understanding the system. The best thing to do is to follow all the rules and master the system given before thinking of making any changes.

Remember this: “Do not fix what is not broken”

Don’t get caught up in search of the ‘Holy Grail’ as it simply does not exist. Find a trading system that you like and that adapts to your personality, one that you are comfortable with. Stick to it and be consistent while following the rules with a disciplined mind.

Don’t get caught up in this HYPE that are Expert Advisors (or EAs as they are called). Think about it, if those so-called perfect EAs were so profitable, why do big banks not use them instead of having a human trader trade their money. Stay away from EAs that promise 100% to 200% returns in a month. Not all EAs are bad, however, rules will still apply for some of them to be profitable.

Happy trading.

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