What is the difference between those who succeed in Forex and those who don’t?

There is no perfect trading method, no matter the market value

Any Forex textbook will begin by teaching traders about fundamental analysis. Fundamental analysis is an analysis method aimed at long term trades, and thus does not really stand up well in margin trades. This is because fundamental analysis does not tell traders when they should begin or end their trades. Forex trades put leverage on small amounts of deposited money, making trades a risk-taking game. Long term risks are generally connected to disadvantageous trades if the trader isn’t careful. Because of this, technical analysis is also employed when conducting trades, although many traders make the mistake of thinking that there is an all-encompassing method of technical analysis method, and then waste time searching for that special method. In other words, there is no one tell-all method of technical analysis for traders to use. Many traders study technical analysis and hope to find a method that helps them win 100% of the time, thinking that winning all the time is equated to making a huge profit each time. The truth is that, even if you manage to find a “100% win” method, you are not guaranteed a huge payout every time.

 

 

The answer to continuing to make a profit is not just your trading method

So, exactly what kind of investment method are those who continue to win using? To my knowledge, there is not one single trader who has a 100%-win method of trading, and no one uses any form of complicated technical analysis. This may come as a surprise, but, if you ask these winners, they will generally tell you that they use simple technical analysis methods that anyone can learn easily. What is important for them is not difficult technical analysis, but to use a method that they are familiar with. In other words, the chances of simple and easy to understand methods being more useful to you are quite high, because you are already familiar with those methods. Of course, coming as far as some traders means that quite a lot of hard work was put into trading, and losses were probably taken. Many traders may enter Forex expecting it to be easy and only increase their hardship until they realize that it is not.

 

 

If you cannot control your greed, you will not win

Many people begin Forex trading because they want to save up money. The truth is that this want of money is the downfall of many traders. No matter how much you may study technical analysis and become familiar with the methods and systems, ultimately the want of more and more money has a high change of bringing you down. Those who cannot control their greed cannot win when it comes to high risk leverage trades. The difference between those who win and lose in Forex is the difference between their ability to control their greed. Self-control can be difficult, but by deciding your own rules and keeping to them you can keep yourself on track to make balanced decisions about when and how much to trade. It is often said that cutting down your losses is important, and it is said for this very reason. Cutting down your losses in and of itself is not as important as the rules and methods you decide to use, and continue using, to cut losses.

 

As said above, the best way to win in Forex is to master simple and easily understandable technical analysis methods and make and follow your own rules like the trading pros do to avoid loss margins. By doing these two relatively simple things, you can become a winning trader and spend the rest of your time piling up your profits.