If you want to enjoy Forex trading success then you need to pay attention to the 3 points enclosed, each of them is essential to making big profits so lets take a look at them...
The points we are going look at struck me when I was reading about how trading legend Richard Dennis taught a group of people with no trading experience at all, to trade in just 14 days.
They went on after their training, to make hundreds of millions of dollars in their trading careers and many still trade today.
This group learned quickly and while they had a good tutor, the three points that stand out for success from their story are these.
1. Simple Systems Work Best
The system was essentially simple and was a long term, breakout, trend following system. Anyone could learn it and while it was simple that's why it worked.
All the best systems are, as they are more robust than complicated ones, with fewer elements to break, they are also easier to understand and have confidence in.
So keep your trading method simple and robust to win.
2. Money Management
The key to success in Forex and other leveraged markets is to make sure that you defend what you have, any successful Forex trading strategy is based on sound money management.
Dennis applied to the system strict rules that had to be followed in terms of money management. In fact, the system had far more losers than winners but because they were kept small, the gains when they came more than compensated for the losses.
Any trading system will take losses and you need to get used to this and make sure you cut them quickly with objective money management rules. Don't ever believe the myths you see online about losing periods not occurring, even the best systems lose for weeks on end and you have to trade through them which leads to my next point.
3. Confidence and Discipline is the Key
All the traders that Dennis taught found the system easy to learn - but found the hard part applying it with discipline and sticking with it. This is hard for all traders.
We don't like losing, as it hurts our egos and our emotions try and get involved but if you deviate from your system, you don't have one!
You must have the discipline to trade through losing periods, until you hit a home run. You don't just get discipline - this comes from the right Forex education, self knowledge and confidence in what you are doing.
Get on the Road to Profits!!
You have seen that Forex trading is a learned skill in this article and you can win but you must pay attention to the points we have covered - but if you do Forex trading success can be yours.