If you want to achieve Forex trading success, you need to understand the key combination your Forex Trading strategy must contain to win and that is the subject of this article...
It's a fact that forex trading is a specifically learned skill - traders are not born their made yet, still 95% of all traders lose. This is down to the fact they do not understand the two core concepts that Forex Trading Success is built on. Let's look at this key combination.
1. Simple Odds Based Forex Trading System
Most people think that prediction is the way to make money and this myth is perpetrated by vendors selling junk products but its not. Prediction is hoping and guessing and try it and your predictions will be as accurate as your horoscope.
Trade the reality of price change as you see it on a Forex chart and forget prediction.
Trading the Odds is the key to making money, as Forex markets are an odds based market.
They do not move to science or mathematics, as many people claim (if they did we would all know the price in advance and there would be no market!), you are simply trading probabilities. Like the good poker player, you will lose many hands but if you play and bet on the high odds hands, you will make a lot of money.
In general terms the forex trading system you use should be very simple - simple systems work best!
The reason for this is they are very robust in the brutal ever changing world of Forex. Complicated systems break easily and there is no correlation between complexity and success whatsoever.
Putting together a Forex trading strategy based upon the above is easy - execution of the strategy is the hard part and we will look at that next.
2. Discipline in the Face of Emotion.
You now need to execute your trading strategy with discipline and money management through long periods of losses which may last weeks.
Don't think you will have a long period of losses?
You will, all traders do, even the top traders. This doesn't mean they don't win long term - they do but short term they ride out these periods with discipline.
Another big myth about Forex trading is drawdown periods don't last long and it's again put around by vendors selling junk products. Drawdown periods do occur and how you deal with them is the key to your success.
You must keep going executing your trading signals, as the market takes your money and makes you look stupid. You are going to have to stay on course and we all hate losing and have egos but losing is part of winning and you need to understand this.
You can enjoy forex trading success but you must keep losses small and stay on course. This is the hard part of Forex Trading and separates out the winners from the losers.
The above Sounds Easy
However its not and that's why so many people lose at Forex trading.
If you think discipline is easy then you have never traded - the good news however is you can become disciplined and you can win. Like learning a method it's a learned skill.
The rewards of Forex trading are huge, if you can get the above combination right of:
A simple robust forex trading system, executed with discipline, you are on your way to Forex trading success and a great second or even life changing income.

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