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Forex Trading Holy Grail, Learn The Secrets Today

Feb 1, 2008
While you are reading this article, you may get the feeling you want to dismiss this message, and go back to looking for the Magical system. If you do, please resist until the end, as I promise you'll learn the truth about Forex trading, and how to become good at it.

It's quite common to find traders that don't make money even when there were plenty of profitable trades. How does this happen? The short answer is they trade through fear, and fear makes you lose focus of the bigger picture. The bigger picture is that you will have losing trades, and you will have winning trades. The fearful trader loses money because they tend to jump in on the loosing trade, get scared, stop trading, and miss the winning trades.

Can you see how the only difference between the winning trader, and the losing trader, is they think differently? One trader learned to not allow the stress of the forex market to control them, the other has not.

If you cannot gain control of your emotional state, your emotional state will control you. Do not underestimate how important this really is.

Too many traders become obsessed with indicators. Without realizing what an indicator really is. An indicator is just a way of smoothing price action. Because it has to use historical data, it will always report a lagging view of the market. You should see indicators as an aid to help you, not as the complete guiding factor. Remember the market moves through the sum total of all the actions (trades) of the market.

So learn to not only read the market, but the mass mentality of the traders driving it. Also understand that there are two groups of traders in the market, the big players and the small players. The big traders know how to play the small players, just like an experienced poker player can outplay a rookie. Everyone thinks the USD is going up? Now watch the big players push it the other way, and take out small trader's stops. Start to think outside the box. Learn to think "what will hurt the most Forex traders right now?" don't trade with the herd.

"Price action is the most important indicator to master, combined with an understanding of what drives it."

Most people search for the "system" first and then try to trade it without understanding why and how it works. This is very difficult to do, as you will not have confidence in it. It is better to find a system that makes sense to you, and is closely related to price action.

When you learn forex trading, you can never ignore the other factors affecting the market. You must have a holistic view. Did news just come out that strengthens the dollar? Did price just reach the 200 ema on the 4 hour chart? Did a head and shoulders just form? is price hitting the top of a channel on the daily chart? It does not matter what system you use to pull the trigger, if you ignore everything else.

Every experienced trader will tell you that a good percentage of their losses are due to missing something, or loosing focus on the bigger picture. This factor is so important.

"Trade your own forex system but never ignore the other factors effecting the market"

It is very easy to overlook and dismiss the importance of this information. It is probably stuff you have heard before. While you learn Forex, you will see this advice repeated over and over again. There is a very good reason for that; all successful traders understand this information, and are successful because of it.
About the Author
It's time to get to grips with your Forex Trading. Learn Forex the professional way by joining us in the trading room.
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