Can trading currency markets really be made easy, when such a large percentage of traders lose money? The answer is yes it can but you need to know and understand, some basic facts about trading currencies. Here we will look at some trading tips to make currency trading made easy a reality.
The clear fact that stands out when looking at the statistics on currency trading is the constant percentage of people who end up losing money – its a whopping 90%. It's a well known fact which never changes and never will. This is obviously telling you, the minority are doing something right which the majority fail to grasp – so what do winners do with their trading strategies which losers fail to do?
Winners and Losers and the Constant Ratio
The answer is – winners DON'T think that the trading strategy they have is the most important criteria in achieving currency trading success, they know its actually the way they execute and apply it which is the difference between winners and losers. Let's look at some trading tips to make Forex trading made easy a reality.
Let the Market do the Work – Don't work to Hard
The first point to keep in mind is to let the market do the work and give profit opportunities to you. This might sound strange but its not when you understand Forex charts. If you look at a charts of any currency pair, you will see trends up or down and they will continue for long periods of time, with the best lasting for several weeks or longer.
Your aim is to trade them but most of the time, currency pairs are not trending so don't try and get profits from the market in these periods. Many traders think they should execute trading signals in anticipation of a trend developing, the winning trader know he should wait for a trend in motion and then trade it. The winner also knows, the best trade for the majority of the time is to not trade at all.
Many losers are trying to force the markets to give them profits but the reality is they end of thinking that the more they try to make money and the more hours, they put into their trading strategy, the more likely they are to achieve success but this is simply not so. The market is all powerful and you can't force profits from it. You need to wait for the markets to give you trades with high odds of success and just take them. This is good news because you just simply watch and wait and let the market tell you when to enter a trading signal.
Simple Is Always Best
We have discussed this numerous times on the site but will make it clear again here because - its part of making currency trading made easy a reality. All you need to do when deciding on a trading method is to get a simple Forex trading system and stick with it over the longer term. Again, many traders develop complex techniques and strategies, hoping they will make money trading currencies but they don't - the effort they make is wasted.
Forex trading is a reflection of life – its a human market which is not subject to the laws of science or equations and suits a simple flexible strategy not one which has to many inputs, indicators or rules in it. So while many intelligent traders spend huge amounts of time on there trading system, they simply dont need to.
Forex Mind Control for Profit
We have covered this as the key to success in currency trading in other sections of this site. The point I Want to stress is you are have to be in control of yourself to trade any method with discipline and follow the rules. If you don't follow the rules, ignore or over ride them, you will soon see your trading account drained of equity because, your emotions will take over your trading and you will make fatal errors such as holding losing trades in the market to long and banking your profits to quickly which is what most losing traders do.
So is being in control of your emotions are trading with discipline easy, surely it can't be, when so many traders fail to make money? The answer is it is easy to do you just have to decide to do it. So why don't traders just do it? There are a number of reasons but perhaps the biggest is lack of education and understanding the real reality of currency price movement. My own view is if you get the right education, you will come to the obvious conclusion that its the route to success and make the right choice which is to apply your trading method with discipline.
Trading Should NOT Require Effort
Once you have done your research on how currency pairs really move and have a simple trading system your confident with, you only then have to make the choice of being disciplined when applying it and then, trading becomes effortless. By effortless I mean, you will not need to work hard to make money from the markets, you will simply look at them, wait for the rules of your strategy to be met and generate your trading signals. You will simply look and know what to do and be able to trade for big profits in your spare time from home.
Forex trading success has got nothing to do with intelligence, a high IQ or working long hours, its simply to do with you following what you see and a set of rules you have learned which is your trading plan for success. Your Forex trading strategy is applied effortlessly, the market presents you with opportunities and you simply accept them.
Many traders will think what I have said is to easy and will always, change systems looking for a better one or try and build the ultimate trading system. When doing this they will bespending endless hours working on back testing and researching, huge amounts of indicators but the search for the perfect trading system is a waste of time and effort. The other group of traders, who try and force the market to give them profits are also wasting their time - they should simply wait for profits to be given.
If you have understood this article, you can see why Forex trading is a lot easier than most traders think but they have the wrong advice or education and never see the reality which is once your basic education is complete, trading currencies is simply looking for an opportunity to be presented by the market and having a set of rules and a mindset to take advantage of the opportunity.