This article is about what all Forex failure have in common. What makes me the right person to write this article? I am the perfect person to right this article because I have been a Forex failure. I have wasted my time trading Forex in unprofitable ways, I have lost my entire account before, and I've used to much leverage and zero money management. I am the perfect person to write this article because I've experience all the downs of Forex marketing and few of the ups. I am like a better version of most people who try Forex.
What separated the winning retail Forex traders from the losers. First, we must establish that very few people make money trading Forex. I can tell you with a straight face that 90% of the retail traders lose money or barely break even. You will not get rich over night trading Forex. By the way, retail trader is someone one who doesn't trade for a bank and someone who has basic access to the Forex market.
Winning retail Forex traders us money management. Money management is the precise allocation of trading funds. A money management system might only allow a trader to trade 3% of his account in any one trade. Money management is how you don't broke at the speed of light. A money management system will also have limits on the amount of leverage you can use on a given day. It will also account for volatility in the market.
Winning retail Forex traders try to remove as many discretionary decisions from their trading as possible. It is said that the top two things that bad traders and humans in general have a hard time managing is greed and fear. The discretionary trader will change his trading plan based cz rifle review on those two elements. The big banks use computers to remove these two elements from their trades.
Winning retail traders do not scalp and they do not day trade. Short-term trading only works for the big banks with million dollar computers operated my Ivy league mathematicians. I doubt you are an Ivy league mathematician and you probably don't have a super computer in your basement. Leave short-term trading to the professionals and to the global banks. You are just a guppy swimming in shark infested water. Guess who's for dinner?
Winning Forex traders spend most of their time trading higher time frames such as, the daily and monthly chart. They now that it is easier to spot trends on these higher time frames and it is easier for them to earn money trading this way.
In closing, Forex is not easy. It is a market dominated by huge global banks using super computers to trade. Successful retail traders do not go to war with the banks, they just follow their lead by trading trends on a larger time frame. Using money management and an easy to follow system, successful retail traders carve out their own niche.
