If you want to enjoy Forex trading success you need to learn the skills to win and skills needed to win at poker can easily be applied to trading currencies for big profits – let's look at how in this under rated Forex trading tip.
Forex traders are always looking for some secret or holy grail trading system which will give them an edge over other traders but trading currencies successfully is much like playing poker – the skills, that are needed to win are within your mindset – if you have the right psychology you will win:
Acceptance of Responsibility the Key to Success
"Remember this: The house doesn't beat the player. It just gives him the opportunity to beat himself." (Nicholas (Nick the Greek) Dandalos)
The above is true in poker and its also true in the currency markets. Traders blame the Forex robot they have bought, their broker or even the trading tip they got from CNBC. The winner at Forex accepts responsibility for his actions and knows that he has to have the right trading method and mindset to win.
What these losing traders don't understand is trading is not just to do with a good trading method, its also about applying your mind to exploit the edge for profit. Serious traders, trade for profits only and unlike most losing traders, they don't see applying their trading strategy as fun or find placing trading signals exciting:
Pro Trader Skills Applied for Profit
"See, in my world - the world of high stakes gin and poker - we play for cold,hard cash. It's all business, pure and simple. Anyone who thinks card playing is a 'game' - I'll show you a loser. Money... M-O-N-E-Y. That's how you measure success. One dollar at a time. One chip at a time. That's how you keep score." (Stu Unger)
If you want to learn the skills needed to win at Forex, you need to understand its a serious business where, around 90% of all traders lose money. It's not a profession for dreamers or those who want to try and follow others. Forex trading is a profession where you need to get the right Forex trading education, develop a trading strategy with an edge and then, apply it with courage, confidence and discipline, to make you money.
The Basics of Forex Trading Success
If you must play, decide upon three things at the start: the rules of the game, the stakes, and the quitting time. (Chinese Proverb)
The basics of trading Forex Successfully are based on the following: Executing trading signals when the odds are at their best, varying bet size on the best trades and employing strict money management rules to preserve equity.
In poker these skills apply as well. A poker player will not play hands, where the odds have a low chance of success, will not be afraid to cut his losses and quit but will be happy to bet on the high odds hands and vary his bet size, depending on how good the hand looks.
Most Forex trades transact more trading signals than they should and this is because they let their emotions take over there trading plan. They continually over trade and this sees their account get destroyed, as they place trades which have lot odds of success. Losers in Forex just like in poker don't keep losses small and if you want to win -you have to be able to at the table.
The experienced poker poker player will look at the hands coming out of the deck and won't play a hand, unless it as high odds of success and furthermore, he will fold hands quickly which he doesn't think he can win on.
The emotional Forex trader will often put trades in without stops or stops in the wrong place and run his account equity down, until he has lost his entire trading account. The successful currency trader will know the saying below is true and its helps him make profits on his account:
“ There's a time to hold them, a time to fold them and a time to get out of town fast” (An Anonymous Old Gamblers Saying)
In terms of trading signals its common wisdom to bet only 2% of your account equity, on a single trade but the serious poker player never bets the same amount all the time – he will increase his bet size when he is winning and decrease it when he is losing and will at certain times bet big on a really good hand.
In currency trading, its proven that if you adjust bet size in the same way, you will make far bigger profits, than if you always try and bet 2%. Adjusting the size of your trading positions, in relation to the odds and how your account is performing is one of the best ways to make bigger profits. We have discussed this, in other articles so check them out.
Currency Trading Success and YOU
“Gambling is difficult….. Individuals don’t succeed because of the inability to control there own actions. In gambling the only asset you have is yourself” (J Anderson – Poker Sex & Dying)
If you want to learn how to trade Forex successfully, you can learn a lot from poker. Both are a challenge because – you have to control your emotions and trade with discipline to win. The key is to trade a trading strategy that has a defined edge which you understand and can therefore, trade with discipline to achieve long term profits.
The game of poker is a game of odds and the currency markets are as well. In both poker and Forex, you need to understand probability and trade the odds to achieve success.
The Forex trading skills you can learn from poker are:
To accept you are responsible for your actions and you are on your own, patience to wait for the right trades, an ability to spot and play the odds, discipline to help you cut losses and confidence and courage which will not only help you preserve equity, they will also help you trade the really high odds trades for huge profits.
Many of the worlds best traders, have come from professional poker playing and many traders who trade successfully, also play poker successfully. If you want to win at Forex trading think like a poker player and you will soon be trading currencies like a pro trader.