Forex Trading Secrets
Most successful forex traders have been asked at one time or another what are their forex trading secrets. People who are fairly new to trading, or who haven’t managed to make any kind of consistent profits on the forex markets seem to be convinced that there is some sort of “secret sauce” or “magic bullet” that successful traders use.
So is there a big secret that these big guns aren’t telling you? Do they know something that you don’t?
Well, no and yes. That is, there’s no secret. But the more successful, experienced, profitable forex traders definitely know something that many “wannabe” traders don’t, and that is the value of discipline and patience in forex trading.
Experienced traders generally don’t make the kind of mistakes that novice traders tend to make all the time. The thing is, they have the value of experience to tell them when to enter and when to exit a trade. One of the biggest “secrets” that new traders seem to have a problem learning is nothing more than finding a method or a trading strategy that works and then sticking with it! It iss always a mistake to chop and change between trading styles and strategies, fore example because the price is not doing exactly what you expect. If you open a trade, then make sure you have an exit plan in place, for both the upside and the downside. Then have the discipline to stick with that plan. Give yourself a profit target and put a stop loss in place then hold on to the position, either until your profit target is hit, or until you’ve cut your losses at a pre-determined point. Never let a losing trade run and run, as far as trading is concerned, that way lies the route to disaster!
This is the other forex trading secret that isn’t actually a secret at all. We are always told that patience is a virtue. Well, in the world of trading it certainly is! You need to have the patience to stay out of the market until your signals tell you you should actually get in and open a position. You should never, ever trade just for the sake of trading. Not unless you want a sure-fire way to consistently lose money.
If you have the patience to only trade when your forex signals say you should, and if you have the discipline to follow your strategies the way they are designed to be followed, then you will stand a much better chance of being a consistently profitable forex trader. It is possible.
So remember, there are no forex trading secrets. There is only good practice in trading. Discipline and patience will take you a long, long way!