Tuesday, September 9, 2008

Foreign exchange Trading


Do You Need to Be Clever to Be a Great Trader? No Here's Why .If you think you have to work hard and be so clever to succeed at Foreign exchange trading, you're in for a reality check...

In life working hard can bring you bigger rewards in Foreign exchange trading its all about working smart and learning the right knowledge, If you work extra hours in real life you get more money on most occasions in Foreign exchange trading you get rewarded for one thing and one thing only:

Take care of your trading signal.

It can take you 5 minutes or 10 hours, it doesn't matter it's the result that counts.

In Foreign exchange trading the very best traders are very often not educated to a high level, they use simple systems and in currency trading this works here's why:

work better by using Simple systems
They always have and this can be proved by the fact that 50 years ago 95% of traders lost and they still do today, despite all the advances we have seen in forex forecasting and technology.

If you try and complicate a trading system, it has too many elements to break in the brutal real world of forex trading. Simple systems tend to be more robust.

Clever traders who think they deserve success very often lose.

The problem is they come with an ego and an ego means they like to be right.

Well in the forex markets you are going to be wrong a lot of the time and the market is going to make you look a fool. Remember, there is only one right price and that's the market price.

Of course in forex trading you have to take losses, that's just the way it is - but that doesn't mean you can't make money you can.

Some of the best traders I have seen or read about are card players. Why?

They now how to hold, fold and bet and that's exactly what you need to do in currency trading. A simple system that trades the odds is all you need and that's easy to build.

You then need the discipline to follow your system and be humble - take your losses cheerfully and run your profits.

In my time I have probably taught 5,000 + traders to trade and the most successful one was an 81 year old lady who owned a sheep farm called Louis.

She wasn't smart (which she would admit) but she had a simple system she applied with discipline and she piled up huge profit.

On the other side I have tried to train some mathematicians and of course they were smart but could they take losing when the market turned their clever systems to dust - no, their egos just couldn't take it.

So there you have it education is no barrier and to success and simple systems applied humbly with discipline is all you need.

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