The Biggest Secret to Successful Currency Trading

Successful currency trading looks deceptively simple, yet few traders succeed – even with the fact that there is plenty of notes around to show them how. So why is this? – The fact is, much of the conventional wisdom given about successful currency trading, really leads to the contrary – it really causes traders to fail.

So, let’s look at the conventional wisdom most traders follow, and why it really causes them to fail – and how if you ignore the conventional wisdom, you can really make huge profits!

1. It’s Simple to Make Money!

Most currency traders are led to judge, that successful currency trading is simple – and there are plenty of vendors and brokers, who be reliable for this myth – as they make money from this myth.

As we all know in life making money in any area is not simple.

If you reckon successful currency trading is simple, you’re in for a reality check – successful trading isn’t simple.

2. Responsibility

This leads on from the above – if you want to make huge profits, then you are reliable, and no one else.

The fact is, the majority of people in life can’t accept responsibility – and this means they will fail. They reckon a name else can give them accomplishment – and of course, they can’t. Many people rely on guru’s – who, if they could make money themselves, wouldn’t be promotion their advice.

3. Methods Doomed to Failure

There are plenty of methods out there that are doomed to failure.

Let’s take day trading – as the largest doomed method of all! How can you make profits in day, which are huge enough to cover the losses on your losing days, cover large commission and slippage costs? You can’t – but brokers will tell you that you can, as they are making more commission!

There are many more examples – but this is the exact example of how not to be successful in currency trading.

4. Money Management

We all know that money management is one of the keys to successful currency trading – but on small financial proclamation, conventional wisdom states the risking of about 2% per trade! Well your risk on a 10,000 tab is just $200. So what happens? – You take small risks and get stopped out most of the time – and never make any money.

If you aren’t going to take a risk – don’t trade currencies.

5. Market Timing is the Key to Accomplishment

No, it isn’t – this involves predicting the market. Many traders like to follow extrapolative theories such as Gann and Elliot Wave – that try to predict where you should enter the market in advance. These extrapolative theories don’t work.

You simply need to follow market action – and wait for confirmation. You may miss part of the trade, but your odds of making money are far higher.

Some Clear Advice

Successful currency trading depends on the later reputation traits:

1. Party Responsibility – You and you alone are reliable – and you can’t follow, or blame anyone else.

People generally like to reckon other people can give them accomplishment, but life is simply not like that – it’s all down to you.

2. Confidence – To buy this trait you need to do your own investigate, and come up with a trading method you are pleased to follow.

3. Restriction – This follows on from confidence – if you have confidence, you can apply your method with the rigid restriction de rigueur, and achieve currency-trading accomplishment.

4. Method – Your method needs to be long term based and not extrapolative – simply follow market confirmations.

5. Risk – You need the courage to take calculated risks. If you have a small tab forget 2% – 10% to 20% is a more realistic figure – which means you have to trade sparingly – and have the courage to hit the huge trades hard.

The Huge Secret

We can’t cover all the aspects of successful currency trading in a single article.

Though, 90% of traders follow conventional wisdom – and 90% of traders lose money – which tells you, the largest secret of currency trading accomplishment is not to follow conventional wisdom.

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Author: Stephen Todd
Article Source: EzineArticles.com
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