Forex Trading – Can you Win

It’s been said that between 90% and 95% of all Forex traders lose while only 5% to 10% win. Most people think that winning traders are winning traders because they have come up with a winning Forex trading system. Although a winning trading plan is important it is certainly NOT why some traders win. It’s possible to have a losing trading system and still win money as long as the trades are managed properly. It’s possible to lose 3 out of every 4 trades and still win money consistently by keeping the losses small and allowing the winners to get big.

You might be surprised when I tell you that a winning Forex strategy is really not that difficult to come up with, and that in actuality there are many winning trading systems. And if what I say is true, that it’s easy to come up with a winning trading plan, then why do 90% or more of the traders lose? Two words: mental weakness.

Even after you find a winning system you still have to trade it and that’s where it can get tough. If you could enter a trade and then have the market immediately move a large amount in your favor trading the forex would be easy. But it doesn’t work that way.

The typical inexperienced trader will get stopped out on the losing trades, taking a loss, and then exit too early on the winning trades, not getting the full possible profit. The key to winning consistently in the Forex market is to come up with a winning trading system and follow it, no matter how difficult it is. A winning trader with a winning trading plan knows that he will win 2 out of every 3 trades, or 3 out of every 4 trades, or 4 out of every 5 trades, but he sticks with his plan all the way on every trade, win or lose. He may have 3 losing trades in a row, but on the 4th trade he continues to follow the plan exactly. He doesn’t deviate from the plan because he’s had a bad streak. He doesn’t exit a trade until his plan tells him to.

Read More...

 

Sticking with a predetermined plan, and not deviating from it, is the key to successful trading. Some traders can win 3 out of every 4 trades and still end up losing money. Why? Because they exit winning trades too early, turning potential big winners into small winners or even losses. The only way to become a successful trader is to let ALL of the trades play out according to a successful predetermined plan.

Another important element of trading is money management. Improper money management is without a doubt the biggest reason traders lose. If a trader has too much money at risk on any one trade they will have a much greater tendency to exit trades too early. It’s very important that you know how much money to risk on any one trade, how to manage the trade, how to protect your profits, and how to exit a trade. These elements must be learned if you want to become a winning trader. Learning these important rules can help you become a successful trader.

If you would like more information about Forex trading please visit http://www.ForexTradingRules.com to learn about The ForexPower Trading System, one of the hottest selling strategies on the web today.



Source by J. Brian Keith

Leave a Reply

Your email address will not be published. Required fields are marked *