2Bull Forex Blog

Most forex traders want big profits but they never get them they get small or mediocre profits and lose long term because they simply cannot accept s0ome key facts that are needed to pile up big profits longer term.

The reason trader can’t make money and follow a trend is routed in human nature.

The first reason is that traders try so hard to avoid risk they actually create it.

Many traders get excited when they get a profit and the bigger it gets the more nervous they get - every tick in open equity against them causes them inner turmoil and in the end they snatch it or more their stop to close and get clipped out by normal volatility and get a mediocre profit.

What happens next?

The trade goes exactly the way they thought it would and goes on to pile up $3000, $5000 $10,000 or more and there not in despite the fact they thought it would go that way!

The fact is its easy to pick market direction and trends but quite different trading the trends for profit and most traders fail to make big money even from trends they knew were going to happen and their forex trading strategy never realizes its full potential.

The fact is if you look at any forex chart, the big trends last for months and sometimes years and there are big dips in open equity - but if you want to win on the big trades, you have to accept these dips to make the really big profits.

If you are trailing a stop, you need to wait until the trend is well in motion before moving it up and trail it behind normal market volatility - we use a 40 day moving average a lot of the time and although you give a good bit back at the end, if it’s a strong trend you can pile up a lot of profit.

If you caught just 50% of all the major trends then you would be very rich and that’s a fact.

To hold these trends you need to have inner conviction, based on understanding and confidence which will give you the discipline, to accept dips in equity which will inevitably occur.

You will understand that it’s necessary to do this, to catch the really big trends and take it as a consequence of seeking big longer term profits.

Forex trading is risky (don’t let anyone tell you otherwise) but trading is all about taking calculated risks at the right time and having the courage of your conviction.

If you can do this you can enjoy long term currency trading success.

Many forex traders think they can’t build a forex trading system but they can you can easily do it and within a week or two be ready to trade for big profits. Here we will look at a system that will work for anyone and how to build it.

There are many ways to trade forex but this is a simple system anyone can understand and use - it’s timeless and it WORKS.

1. Support and Resistance

All successful systems are based on the concept of support and resistance and these are levels that if broken are considered valid by the market participants. Generally you are looking for several tests preferably in two or more time periods that are widely spaced i.e. weeks or months between them.

2. Breakouts

One of the biggest myths of currency trading is you should buy “low or sell high” to make money - this is not the way to catch the big moves.

The majority of big moves start from new market highs or lows and you need to buy or sell the breakout. When these moves occur the supply and demand equation has gone in favour of the break and you need to go with it.

Most traders can’t do this!

They want to buy or sell at a better price and wait for a pullback which never occurs and prices sail over the horizon and the trader never gets on board and misses a great move

3. Trade the Reality

Another myth is you have to predict where prices are going - well that’s just hoping or guessing and you don’t get rewarded for that in any venture let alone forex trading.

If you buy a breakout there is no hoping or guessing you are buying the reality of price change and have the odds on your side - and that’s the only way to win.

4. Confirm Confirm Confirm

When a break occurs you need to decide whether it’s a false break or a valid one and here you need to understand price momentum which should support the break.

If you don’t know about momentum oscillators you need top learn (look up our other articles) and great ones for confirming a move are:

RSI The stochastic and the ADX Line

5. Stops

The stop on a breakout is obvious behind the breakout point and you then need to hold it back (don’t trail too quickly) so that you are behind normal volatility and don’t get stopped out to soon - when the trend is underway you can start to trail your stop up - don’t move to quickly.

6. Patience

The big breakouts don’t come that often only a few times in each currency per annum but you don’t get rewarded for how often you trade your forex trading system - you get rewarded for being right.

If you trade the big breakouts you can be in on all the best trends and make huge profits and you will know most traders don’t like buying or selling them - if you do then you can make a lot of money

Finally!

You may think that all sounds very simple and it is - but it works.

Do not confuse complicated trading strategies with success.

It’s a fact that all the best forex trading systems are simple as they are very robust in the face of ever changing brutal market conditions.

A simple method with discipline can lead you to success with your forex trading system and the above system is simple to learn, easy to understand and can be applied in 30 minutes or less a day.

If you want to make money in currencies you need the right forex education and it’s a fact any trader can learn forex trading and be successful but most fail to make money - this article will give you 6 tips so you can enjoy currency trading success.

Here are your forex tips in no order of importance but there all essential to your trading success.

1. Success Rests On Your Shoulders

No one else can make you rich you have to understand what you are doing to get the confidence to follow your path with discipline. If you don’t understand what you are doing then your discipline will go as soon as you have some losses.

If you cannot follow a forex trading strategy with discipline you have no system.

2. Forex trading is NOT easy

Anyone can learn to trade but the really hard part is the mindset to succeed.

Do not believe anyone who tells you that it is and sells systems saying that you will make money every month or they can predict prices they can’t.

There is a huge market for these systems and there mostly junk and come with a worthless simulated track record. As we said success comes from understanding what you are doing and self education is the key that will make you successful.

Forex trading is not easy and wouldn’t expect it to be with the rewards to be had but the good news is - it’s not that hard either.

3. Work Smart Not Hard

Most traders think the harder they work the more money they will make.

In many areas of life this is true but not in forex markets! You get paid for being right with your trading signal and that’s it.

Work smart and learn the right knowledge and avoid all the common myths that most traders fall for which include:

- Day trading systems make money.
- You need to predict forex prices to win.
- The more complicated your trading strategy the more likely you are to win.
- Trading news stories is a great way to make money.

None of the above are true - there all myths we have covered even more in our other articles so look them up.

4. Use Forex Technical Analysis

It’s simply the most time efficient and best way to trade.

You can learn it in around two weeks and then spend just 30 minutes a day executing your trading signals - and that’s it. All you need to do is learn to act on the reality of price change and not predict.

5. Keep it Simple!

Simple currency trading systems work better than complicated ones, as they tend to be more robust.

Complicated systems fail in real time trading as they have too many elements to break.

6. Know Your Trading Edge

Your trading edge is something that will give you an advantage that will allow you to make profits when 95% of traders lose.

You must understand it and be confident that it will lead you to forex trading success.

If you don’t know what it is you don’t have one and its time to continue with your forex education until you do.

As you can see form the above your forex education is all about working smart not hard and getting the right knowledge and mindset to succeed. If you can learn currency trading the right way, a life changing income could be yours.