2Bull Forex Blog

Many forex traders think that prices move to a scientific theory and that they have to predict to win at forex trading but this is one of the biggest trading myths and will ensure you lose. Read on and find out why and learn a better way to guarantee currency trading success.

The myth that forex prices move to a scientific theory has been spread by vendors who sell predictive trading systems that they say will make a trader rich and they appeal to greedy or naïve traders.

Of course they don’t work - why?

If prices could be predicted with scientific accuracy we would all know the price in advance and there would be no market!

Markets move because they are uncertain.

Of course if somebody really had found a scientific theory, they would be to busy making money to sell it to you.

Predicting forex prices is simply another word for hoping or guessing and if you base your forex trading strategy on that you don’t have one!

Famous Scientific Theories that Don’t Work

There are lots of scientific theories and many are based around the Fibonacci number sequence (which was actually devised to solve a problem to do with the copulation of rabbits in the 12th century) this is not to insult Fibonacci who was a brilliant thinker - but even he would be surprised at how his theory has been hijacked by the far out investment community.

Also in the hall of fame is Elliot and his Wave Theory (lets ignore the fact he died a pauper) and look at his trading system.

There is nothing scientific about the theory.

It’s all subjective! If a theory is scientific it should be by definition objective.

Finally we have Gann and natural law - well if he knew how the markets moved why did he lose all his money and have to sell courses to make a living?

None of the theories are scientific.

They appeal to the lazy, naïve and the far out crowd, who love them.

The problem is they don’t know the scientific theory of market movement and no one does - because there isn’t one.

Let’s get in the real word and focus on making money with a forex trading system based upon sensible logic

The Good News!

The good news is that human nature is constant and you can spot repetitive price patterns that can be traded for profit. You won’t win every trade - but if you trade the right set ups and execute your trading signal at the right time, you can win longer term.

Forex trading is simply a game of odds but that doesn’t mean you can’t win - you can and the rewards can be huge.

Trade The Reality and The Odds

The best way to trade forex markets is to use forex charts and look and act upon the reality of price change. A trader who uses technical analysis doesn’t care how or why the markets move, he is just wants to make profits when they do.

If you are looking for a level to hold or break wait for confirmation that it has first and go with the trend. Don’t anticipate - wait until you see the reality and then execute your trading signal.

So if you want to learn forex trading the right way and get good forex education, understand that trading is a game of odds not certainties - but if you learn to trade them you can make a lot of money.

Forex trading is easy to learn yet 95% of traders lose money. The reason for this is that forex trading is more about mindset than method. It’s the mindset of the millionaire traders that sets them apart from the losing majority. In this article we will look at how to get the right mindset for currency trading success.

The minority of traders that make really big gains all make their money with different methods - but they all have a certain trait that set them apart.

Let’s take a look at them.

Success comes from Within

If you think you can follow someone else and be successful your wrong - success comes from within and to be successful you need to accept responsibility for your destiny. You need to have a desire to succeed and a willingness to work smart to get the knowledge you need.

Now you need to understand this key equation:

Understanding + Confidence = Discipline

Most traders don’t understand that - if you try and follow the herd, the news, a guru or mentor you will never have the inner belief in the trades. If you understand what you are doing, you will have confidence - and confidence is required to apply your system with discipline through losing periods.

Keep in mind this simple equation!

Simple Forex Trading Method + Applied with discipline = Forex success

If you don’t have the confidence to apply your method with discipline, you have no system at all.

There are no secrets to forex trading that many people would have you believe - ALL The knowledge you need is available for you to learn but you need to learn the RIGHT knowledge and then apply it with confidence and discipline.

Most forex traders then that discipline is easy to acquire but it’s not - as you are confronted with total responsibility for your actions.

You have to confront an all powerful being (the market) and only you can be wrong and it’s all always right. You have to have the ability to create your own rules and have the discipline to apply them.

In 1983 legendary Richard Dennis taught a group of people who had never traded before a system in just 14 days and sent them off to trade.

The result?

They made over $100 million dollars in four years.

These traders were all taught the same system - but some scored far bigger gains than others and this is purely mindset as they had all been taught the same method.

You can learn forex trading and you can adopt the mindset of the millionaire traders but you need to do your homework, gain the right knowledge, to instill confidence and discipline will follow.

The big difference between the losing majority and the elite traders is a difference of mindset.

There are a lot of forex trading systems for sale and most are junk. You can find out if a system is likely to make you money by looking at one key factor which is the subject of this post.

Let me ask a question first:

Would you take driving lessons from someone who hadn’t past their test?

Of course you wouldn’t!

With forex trading systems however traders buy systems that have never been traded and then wonder why they lose. If you are looking for a forex trading system online they will all give you a track record that’s profitable. However the way to discard 95% or more of them is - to look for the disclaimer below or similar one - read it carefully:

“cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

What this means is that a vendor can publish or make up any track record he likes knowing the closing prices and simply put this disclaimer on it. Most traders never question it - buy the system lose and then wonder why they didn’t experience the same gains as the track record.

If you are looking for a forex trading system then always be cautious when you see the above disclaimer - you have to ask yourself the question:

If the vendor has not had the confidence to trade it why should you?

This is a very valid point and you need to use common sense.

In forex trading to many people are blinded by greed and see forex as an easy way to riches but of course with the rewards on offer its not that simple. You can make a lot of money but you need to get the right forex education.

The Route to Currency Trading Success

Forex trading requires you to do your homework - no one is going to make you rich only you can do that, so seek out sensible down to earth advice and learn it yourself and you can build your own forex trading system - which we will cover in our next article.