2Bull Forex Blog

Today, the internet and the power of desk top PC’s have revolutionized our lives and forex trading. Many traders are looking to computers and currency trading systems to help them make money and that’s what this article is all about.

Let’s first of all start with a rather startling fact:

20 years ago 95% of forex traders lost money and today the ratio remains the same - this is despite all the advances we have seen in forecasting software speed of news etc - the ratio still remains the same.

The fact is computers have helped us in some areas in terms of getting information and ease of use but computers are not the Holy Grail lets look at an example.

Neural Networks - Artificial Intelligence & Chaos Theory

Today the buzz words are neural networks, artificial intelligence and chaos theory and people build complicated computer programs around these theories.

Mostly these trading systems are clever but they don’t make money - Why?

Because they try and be too clever and have more elements to break than simple forex trading systems which have always worked best as there more robust.

Try this Simple System it’s FREE

My contention is that if you took a simple forex trading system like Richard Donchian’s four week rule ( which is free) and applied it ( look it up in our other articles) it would beat 95% or more of the clever over priced systems I have seen and this simple system is very simple - just 1 Rule!

Look at it and you will see why it works.

In forex you don’t get paid for being clever you get paid for being right with your trading signal- and that’s it.

Years ago in the 1990s I got talked into buying an artificial intelligence based program and to lease it in those days was $2,000 per month and I bought the story of it being based on NASA technology etc and it was beautiful in its presentation all sorts of indicators flying around the screen I had never heard of and it wiped my equity $80,000 out in 3 weeks!

If I had thought about it - it was simply based on logic that wouldn’t work and had too many rules but I was blinded by science.

So the moral of this article is computers make our forex technical analysis easier and save time - but they should not be used to create complicated systems.

Your PC is more powerful than the one that was used to land man on the moon - but it won’t help you beat the market.

If you want a computerized currency trading system to make money, simple systems are best and always have been and you should remember this and make it an essential part of your forex education.

You will read a lot of information on the net telling you successful forex trading is easy yet the facts are that 95% pf traders lose all their money. Now another fact is that anyone can learn to trade - so what are 95% of traders doing wrong?

The answer is they are simply getting the wrong forex education and falling for common myths, they also don’t understand the importance of mindset.

The link between the right education and the right mindset is crucial - as they go hand in hand for success. Sure, you need a good logical sound method but that won’t help you, if you don’t know how to apply it with discipline.

First most traders fall for myths and here are the most common ones, believing any of them and you will lose.

- You can follow a system from someone else and win
- You can win at day trading
- You can predict forex prices
- You can trade expert news stories
- The markets move to a scientific formula you can trade
- Buy low sell high is a great way to make money
- Money management is simply placing a stop

Most losers make one or more of the above trading mistakes and lose quickly. In most cases it’s just simply traders are lazy, greedy and naive.

Forex trading is not a walk in the park and you wouldn’t expect it to be with the rewards on offer - but for those willing to learn currency trading the right way there are huge profits to be made.

Let’s take the basics for successful forex trading:

You need to have a system you know the logic of (not just follow one blindly) and you must have confidence in how and why it works - if you don’t you simply won’t have the discipline to follow it through losing periods.

Of course, if you don’t have the discipline to stick with your forex trading strategy, you don’t have one.

The hard part is following a system with discipline.

Most traders have heard it’s important but are simply unable to do it in reality. A few losses and they throw in the towel.

The key to winning at forex trading is of course to get the right education, avoid the myths but also to acquire discipline which is really the hard part of trading

Discipline comes from an acceptance of you are in charge of your own destiny and confidence from your own research and learning - no one else can make you rich, only you can and most traders simply don’t understand this.

Forex trading is NOT easy but

Its not hard either if you get the right forex education and understand that your mindset to apply your method is just as important as the method you use.

So if you want be successful at forex trading - start educating yourself the right way and your efforts will be well rewarded, with big long term capital gains.