Being successful with currency trading is usually what you want, right? If so why do you still fail in your bid to demystify forex or is forex exclusively for the selected few, or those who like the casinos are given inside information for trading.
I have been trading this market consistently for sometime now and to be precise, what you read about trading the forex market is one thing, trading live on its own is another thing.
Its very easy to pin point to facts that greed and fear are the two brothers influencing most loses in forex, and that is true to the last word, and it is also true that in order to be successful, you must have a trading system that has been back tested with previous charts and used in your demo account and consistent with profit, but what you should really put into consideration before you decide to trade, which to a large extent will influence your success in trading forex is actually your temperament.
What kind of a person are you?
Do you get angry easily when the trade goes against you?
Are you biased in nature?
Do you get angry and refuse to trade when you hit the sell or buy button and you are re-quoted?
Are you sluggish naturally?
Do you say things you don’t do?
Are you easily distracted?
So you may feel that this is not necessary, right?
Have you realized that some people may be given simple instructions, which will not cost them an arm to follow but when it is time to implement they end up doing something else? Is that not so?
The reason why I am being so irrational in this article is this; trading forex is serious business and trading forex successfully is no joke. You need to be able to follow your decisions tactfully, like a tiger looking at its prey and is ready and willing to apply all his experience and strength to subdue its opponent because it knows its life depends on it.
Now, in trading forex successfully, it is a must to understand yourself, find those weakness in you that acts against you trading the market successfully, and find what you can do to eliminate them. This is very important. Are you easily distracted when you are supposed to be trading? Then that is a nature you need to deal with to effective trade forex successfully.
Most traders are not successful in trading the forex market, not because they don’t know how to trade successfully, but simply because they have not understood themselves very well and how their body make acts as obstacles to trading the market successfully. You need to trade with a time frame that suites you as a person. Understand this properly and you will not have problems placing your trades.
I can tell you to implement this in your trading system:
Look to sell when stochastic goes above 80 and MACD is going from positive to negative,
look to buy when stochastic goes below 20 and MACD is going from negative to positive.
This sounds simple right?
Trade based on your strict money management technique. This is one of the most important aspect of your trading system. Remember, you trade to make profit.