This is a very special message to everyone searching for the forex trading Holy Grail system. I intend to reveal it in this article. Before I begin, I would like to say that anything worthwhile in life takes time and effort to master. Trying to learn forex is no different
During a profitable month in my service, a member contacted to cancel. He explained how he took the first 3 trades I sent him, and they were stopped out, and how he became fearful and stopped trading. Because he stopped he missed the next 2 trades that were very profitable. Then he jumped into the next trade which was stopped out. Then he quit altogether.
Can you see how the only difference between the winning trader, and the losing trader, is they think differently? One trader learned to not allow the stress of the forex market to control them, the other has not.
If you cannot gain control of your emotional state, your emotional state will control you. Do not underestimate how important this really is.
One important truth about indicators is that they are only designed to present price action in a different way. Price action itself is the absolute truth about what is currently happening in the market. Price action is what is happening to your bars, and what resistance/support levels are being reached/breached. If you can understand the driving force behind these moves, you can better understand the market.
When I look at the forex market I always try to get a feeling of overall sentiment. One classic example of this is when we know a big news item is coming. The market will go into a range. This is a direct representation of everyone thinking; “I’m not trading until this news is out of the way”. Another example is why pivots work. Everyone who is in a trade is looking to get out, and many are looking to get in at the same point. So the market reflects this by either bouncing or pushing through.
“Price action is the most important indicator to master, combined with an understanding of what drives it.”
The last thing you need is a good system. But it must be your system. I personally like to use EMA’s and support and resistance only, somebody else may like RSI and Bollinger bands, others may use chart patterns.
It is important to know how to ‘look from a distance’ when you learn Forex trading. By looking from a distance you can see more. By trading this way you will see what resistance and support levels may stop your trade. You will see what news is about to be released, or has just been released. You will discover that, trading this way will give you peace of mind and more confidence to trade.
Every experienced trader will tell you that a good percentage of their losses are due to missing something, or loosing focus on the bigger picture. This factor is so important.
“Trade your own forex system but never ignore the other factors effecting the market”
Conclusion: If you feel like I have not told you anything new and are still wondering where the holy grail secret is, I suggest that you trade very small until what I have written fully make sense to you. I have told you the secret of successful trading. It’s not exciting but when you master it, it can make you a lot of money.