I remember when I started out on my trading adventure. I was convinced all I had to do was find a system that I understood, a system that felt right, then I would follow that system slowly but steadily and make lots of money.
I read everything I could get my hands on, spent countless hours on the internet and finally decided to take the plunge. I initially had some success and straight away and the lure of big money enticed me to increase my trade size, thinking I could get rich quick. You can guess what happened next , yep, I lost my first bank. Cautiously I tried again, with a new system, with a bit more success, and it wasn't until I changed my whole outlook on what trading actually was that I started to make consistent profits. It took me over four years to get to that stage. It doesn't have to be that way.
I have often thought If I could go back to that point in my trading career and ask for one piece of advice, what would it be. What would be the number one tip to give someone starting out?
Here it is,
There is no "magic" formula or secret, there is no ultimate trading system so stop looking for it.
The most successful traders today use basic systems that have proven to yield profits over time. They have learnt to trade without emotions. This is the biggest skill you will need to learn. You need to be in a zone where you almost don't care if you win or lose, sounds crazy doesn't it?
This is where I struggled, and where 95% of traders struggle. There are ways to get around this and systems you can use to take the emotions out of trading altogether. These systems are called mechanical systems. The great thing about these systems is that they signal when you enter, where your stop loss is placed to limit risk, and when you sell. You can even be out with the kids or having a game of golf and the system can be running on autopilot.
Now this doesn't mean that you won't have losing trades. It's a fact of trading life that you will have losers, what it does mean is that you will exit a trade when you are supposed to, and not stay in a losing position hoping that it will turn around for you ( we've all done this ).
effective forex trading system
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