Home » Finance » Currency Trading

The Characteristics Of A Profitable Forex Trading System

Sep 8, 2008
It's not easy trying to come up with a successful forex trading system. In fact some people never manage to do so and end up losing lots of money. Other people find success through buying a commercial trading system or learning how to trade from a mentor or professional trader. So what are the characteristics of a profitable forex trading system?

Well everyone's system is different and unique in it's own way but a lot of the most profitable trading systems share the same qualities. The first of these qualities is repetition. The best systems find the same types of high probability set-ups and trade them over and over again.

This is the reason why technical analysis is used by so many forex traders to make trading decisions. Technical analysis is basically a way of displaying various trading patterns, so by finding a combination of technical indicators that are good at predicting future price moves, you can use these indicators to display these reoccurring and potentially profitable trading patterns.

Forex trading should be like a full-time job where you trade the same system every single day. Every trade should be like the preceding one, and there should be very little difference between one trade and the next. You need to develop a system that can detect future price moves with a reasonable success rate and then simply stick to this system all the time.

Another characteristic of a profitable trading system is that they will nearly always use solid money management rules. So they will only risk a small percentage of their bank on any one trade. A good system also generally applies strict stop loss rules and will target price moves that are further away than this stop loss level. This means that you can still make money from a particular trading system even if you have a modest win/loss ratio because your winning trades more than make up for your losing ones.

Some of the most profitable systems go one step further and will use a strict stop loss, but instead of having a fixed target price for exiting a trade, they will let their winning trades run for as long as possible with the use of a trailing stop. This is another way that people make money from forex trading without necessarily having a very high win/loss ratio.

So overall a profitable forex trading system will generally use a tight stop loss policy and will either have a greater profit objective or will let their winning trades run. They also trade the same trading patterns over and over again and do not deviate from this strategy.
About the Author
Click here to learn about some of the top selling forex systems on the internet which includes details about Forex Roboteer and many other forex trading products.
Rating:
Please Rate:
(Average: Not rated)
Views: 151
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources