Forex Trading Strategy – to Win You Must be Aware of This Key Point or You Will Lose!

The facts are 95% of traders lose money and just 5% win. The vast majority of the losing traders simply pay no attention to the point enclosed but its vital for your trading success and its enclosed. . . Traders can simply get the wrong Forex Education and believe the vast number of myths online but even the ones who get a sound strategy together fail to make money with it due to being unable to apply it correctly. By applying it correctly I mean – they have to trade it through a losing period of weeks and NOT deviate from the system rules. Forget all you have read about from so called gurus in terms of, you can trade with 90% accuracy and have only short losing periods, this is simply not true. Learning to Lose is the Key to Winning – Discipline is the Key to Success!You will lose for sometimes weeks on end, it happens to the best traders and it will happen to you but losing short term and staying on track, is actually the key to winning. You must trade through these losing periods and keep losses small – in Forex trading you have to learn to lose in the short term to win in the long term. So why is discipline so hard to achieve? The fact is that losing is hard you look foolish,, your ego is hurt and the market looks like its out to get you ( even though of course it isn’t!) your emotions then get involved and you deviate from your system and lose. If you don’t trade to rules you don’t have a system, it’s as simple as that. Obtaining Discipline Discipline comes from the right Forex education and knowing what you are doing, this gives you confidence which is translated into discipline. The people who tell you that you can make money without knowing what your doing are wrong and you also cant just follow others, you can learn from them but you need to execute the trading signal, so success is on your shoulders and yours alone. Why the Vast Majority Don’t Have DisciplineMost traders today, want to follow junk systems with simulated track records or get rich quick schemes from so called forex experts of course the systems don’t work but if they did you would still need to be disciplined and that means a sound Forex education. You can Win Because Learning a Forex trading system is easy and anyone can do it the best systems are simple and robust so finding or building one for success is easy – applying it is harder but if you have digested all we have said, you will see how to get the right mindset and apply your system with discipline, for long term currency trading success.

Currency Trading System ? if you Buy One Check This Key Point or Lose

If you are thinking of buying a currency trading system you want one that has a chance of re producing the track record in real time, over 95% of the ones sold on the net won’t do this and you can save yourself a lot of money by checking this key point.

In terms of how a currency trading system may perform in future it’s vital and it’s:

Check if the system is curve fitted.

Let’s look at what curve fitting is in more detail.

Firstly, the best type of trading system to buy is one that comes with a real time audited track record of profits over 2 – 3 years.

If it works over this time period then the chances are that it’s soundly based, but systems with real time track records are in a minority, most rely on simulated track records.

The Dangers of Hypothetical Simulations

Most track records you are going to see are those that have executed the trading signals in simulated trading over back data i. e. a hypothetical performance and you need to make sure that the vendor has not bent ( curve fitted) the system to fit the data.

Bending the Rules to Fit the Data

In simple terms, this is like shooting with a gun at a barn door and then going around each shot and drawing a bulls-eye after the event.

This is what many system traders do – they can’t get their logic to work on the data, so they create rules and parameters until they do.

They simply bend the system to fit the forex charts and prices in hindsight.

Trading Patterns Don’t Repeat EXACTLY

This will simply not work.

It’s obvious why, because the same pattern is never going to repeat itself exactly in the future.

Spotting a curve Fitted System

They normally contain lots of rules, different rules for trading different markets and coping with different trading conditions.

Always be wary of systems that have gains that look to good to be true, as they probably are!

Currency trading systems that have little drawdown (under 25% ) are not going to repeat this in realtime – this is simply not normal in forex trading.

For a system to work it should only have a few rules and parameters and should trade all currencies and market conditions with the same rules.

Furthermore, they should be revealed to the user – never buy a “black box system” where the rules are not revealed.

The net has seen a huge number of vendors selling currency trading systems and the vast majority are simply not going to work and the vendor knows this.

They don’t trade themselves and they do so for a reason:

They know the system is not going to work and they just want to make money from system sales.

Think about it.

If most of the systems on the net produced the gains in real time that the vendor claims, they wouldn’t sell it to you – they would be to busy making money.

Anyone can make money by making a track record up in hindsight, but in forex trading when you are trying to make money you don’t have this advantage – you have to make money in the real world and try and anticipate price changes without knowing the closing prices.

Dont Fall For Clever Marketing Copy! Check The Facts

Before you are tempted to base your forex trading strategy on a currency trading system sold by a vendor, make sure you check it out for curve fitting. Chances are if it comes with a hypothetical simulated track record it will be curve fitted and will lose you money if you ever try and trade it in the real world.

Candlestick and Pivot Point Trading Triggers + CD-ROM: Setups for Stock, Forex, and Futures Markets

Product Description
In his first book, A Complete Guide to Technical Trading Tactics, John Person introduced traders to the concept of integrating candlestick charting with pivot point analysis. Now, in Candlestick and Pivot Point Trading Triggers, he goes a step further and shows you how to devise your own setups and triggers—in the stock, forex, and futures markets—based on a moving average approach. Note: CD-ROM/DVD and other supplementary materials are not include… More >>

Candlestick and Pivot Point Trading Triggers + CD-ROM: Setups for Stock, Forex, and Futures Markets

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