Forex Mentors

Here we are going to look at currency trading basics and one specific question any novice forex trader must answer correctly, if they are going to win with their forex trading strategy, so here it is…

My trading edge over the 95% if traders who lose is (defined)

To win you need to have a trading edge – it’s as simple as that. Here are some answers the bulk of losers will give and they will all see you lose

- I intend to use a forex day trading or scalping method

- I am going to blindly trade a vendors system

- I like to take expert opinion and trade the news

- I have a forex trading system that can predict forex prices

- I believe the markets move to a scientific formula and will take advantage of one

- I have a complicated system that I have refined in back testing

- I am simply going to buy into support and sell into resistance

All the above do NOT constitute and edge and will see you fail at forex trading – keep in mind 95% of traders lose!

If you learn anything in your forex education it should be that forex trading is not as simple as it first appears and to learn currency trading correctly you must end up with an edge that you can define – no two peoples edges are identical but successful traders know what it is and why it gives them an advantage and they have the confidence to apply it with rigid discipline.

Lets first start with a fact – forex trading is an odds game not a game of certainties.

There is no scientific method to help you determine prices in advance.

If there was we would all know the price and there would be no market! Furthermore, if you try and predict forex prices, you will lose because you are simply hoping and guessing and you should really be trading the reality and confirming every trading signal before executing.

Forget complicated trading system!

Simple systems work best as they are more robust in the face of brutal ever changing market conditions and have fewer elements to break.

Forget the news its just stories.

The news reflects the emotions of the losing majority and if you get involved in trying to follow it, you will lose.

You need to trade the odds to enjoy currency trading success.

The best way is to use forex charts, where you can simply see the reality of price change and you can either forex swing trade or trend follow – but never day trade!

Day trading is the best way to lose money out and doesn’t work in the real world.

Forget all the gurus out there with their regular income systems and simulated track records; it’s a loser’s game.

Forex trading is a combination of a simple forex trading system; you totally understand this then allows you to execute it with discipline.

If you don’t have the confidence in your system you will never have the discipline to follow it and these traits come from understanding and knowing a trading edge.

So there you have it perhaps the most important point of currency trading basics to learn but if you do and apply what we have written you could enjoy huge forex success.

Here we want to look at currency trading basics and some points which will answer the question: could you win at currency trading? There are 4 points to consider and if you think you can master them, you can enjoy currency trading success.

1. You and Profits

Only you can make yourself successful no one else can.

Sure you can get knowledge from others – but you must learn and apply it by creating your own forex trading system.

A word of warning:

You will see numerous mechanical forex trading systems sold on the net, with simulated track records and none of them will make you money – they all lose. So forget them. The track records are meaningless as they have never been traded – don’t be tempted to try them!

You’re on your own – but that’s the only place to be, if you want to enjoy currency trading success.

2. Working Smart

You don’t get paid for effort in forex trading you get paid for being right with your trading signal and that’s it.

You can learn all you need to know in about 2 weeks and you’re done. It’s a fact everything about successful forex trading can be specifically learned by anyone.

This was proved by trading legend Richard Dennis, who taught a group of people to trade in 14 days and they went on to make $100 million! Yes, forex trading is a learned skill – so where do you get the best education?

Well you can get a ton of free info on the net and you should also take a look at some books by the great traders from Amazon.

The best way to trade is to use a simple system, based upon forex charts but keep in mind – nothing complicated!

Simple trading systems work best, as they are more robust in real time trading with fewer elements to break.

Learning a trading method yourself is essential, as you will know how and why it works and this will give you:

3. Confidence

If you do not have confidence in what you are doing, you will never acquire the vital trait all traders’ need – discipline.

Most traders who trade don’t have confidence in what their doing – they follow news stories or other traders systems and when they hit a few losses, they throw in the towel.

You need confidence to allow you to accept short term losses as a natural part of making big longer term profits. No trading system is perfect, so you need to have confidence when you hit a bad spell.

4. Discipline

Confidence will give you discipline the vital trait all successful traders have.

To be successful you must follow your currency trading system with discipline and execute your trading systems to the rules of the system- through good times and bad.

If you don’t have the discipline to follow your trading system you don’t have one!

Finally …

Forex trading is 25% method and probably 75% attitude.

The reason most traders fail is they simply cannot accept responsibility for their actions and blame everyone else – from their broker, to the wife for putting them in a bad mood!

If you are not prepared to accept responsibility and create and understand a framework of rules, you have the confidence to follow with discipline, then you need to forget forex trading and do something else.

Forex trading has huge rewards and is a big boys game and not for cry babies.

So if you understand the above and what you need to do and you’re up for the challenge, then welcome to the world of currency trading!

We hope our quick review of the currency trading basics above help you on the road to currency trading success.

Forex trading looks easy yet few succeed, the ratio of losers still remains around 95% with only 5% achieving long term currency trading success.

Anyone can learn to trade currencies successfully, but most novice traders simply do the following and lose all their equity quickly:

They try and buy forex advice from an expert and get their forex education by paying for it.

Now consulting an expert in many fields is a worthwhile exercise. If you want to drive you need a driving instructor and if you want to fix your gas boiler, you need an engineer.

So why not consult a forex mentor guru or vendor and gain from their experience?

Well the answer lies in this question:

Would you take driving lessons from an instructor who had never learned to drive or passed his test?

Of course you wouldn’t!

However that’s what the vast bulk of novice forex traders do.

They pay a few hundred dollars for a system; problem is the vast huge majority of these forex trading systems don’t work and have never worked and have never been traded.

The way to prove this is simply ask the vendor two questions:

1. Are you a trader?

2. Can I see your real time track record of profits?

Of course in the overwhelming majority of cases you won’t get one, so why should you trust your money on a system the vendor hasn’t got the confidence to trade himself?

Many novice traders however fall for the hypothetical track record, which shows huge gains all for $100!

The track record is hypothetical so it’s done KNOWING the closing prices and simply made up to show a profit, they have not been traded.

Now we could all make money if we knew what tomorrow’s closing price is today, but forex trading is not that easy.

The fact is you need to ignore the advice that people try and sell you and do the following:

All the basics of trading are available free on the net and you learn all the essential trading information as well as get some great strategies all free, if you care to look.

If you really want to buy some advice simply go to Amazon and buy the books by the great traders.

These guys have walked the walk and don’t just talk the talk – like most of the vendors on the net and good news it will be cheaper to.

If you pay for advice from a forex system vendor you have little chance of winning, as it doesn’t normally work and of course if it did, they wouldn’t sell it to you they would be to busy making money to hassle you for £100 or so.

Don’t make the mistake of thinking that currency trading success can be bought easily it cant – so don’t fall into this trap.