2Bull Forex Blog

If you are considering forex and currency FX trading then you this article is for you and will give you the basics you need to know to succeed…

The first fact to keep in mind is that around 95% of traders lose all their equity and lose it quickly. If you want to be in the small minority of winners then you should consider the following and whether you have the mindset and motivation to do what it takes to win.

Don’t Follow ANYONE!

There are many vendors on the net who would like you to follow their systems and they all promise you will get rich - but you shouldn’t follow them. Most are selling unproven systems, with simulated track records which have never been traded and we can all make money on paper.

There are no secrets to successful forex, Currency and FX trading and success really is down to a good forex education and the right mindset to succeed.

Why You Can Win If You Want To

While 95% of forex traders lose - it is a known fact that everything about forex trading can be specifically learned. It’s not easy and you wouldn’t expect it to be with the potential rewards on offer but it can be done and that’s very encouraging.

So What Do You Need to Be a Winner?

Well you need a simple forex trading system and the simper the better. Simple systems have always worked best, because they have fewer elements to break than complicated ones. Now comes the hard part:

You need the mindset to succeed and execute you’re trading system with discipline.

Always keep in mind if you don’t have the discipline to execute your trading signals in line with your system, you don’t have one!

Discipline is The Key

Mindset and discipline are the keys to success.

It’s a fact that most traders simply cannot acquire these traits and to be fair, it’s not easy - but you can do it, if you are prepared for the following:

- To do trading signals that disagree with the majority.
- To ignore news stories and expert opinion.
- To follow your rules with discipline even when you are taking loss after loss.
- To look stupid when the market wrong foots you.
- To be prepared to take a majority of losing trades and pay for them by running a minority of winners.
- The discipline to hold trades even short term dips in equity are costing you thousands in open profits.

The above list contains just a few of the factors you will face, where you have to stay disciplined and keep your emotions and bay which will be telling you to do the opposite of what you should do - Easy?

Far from it, it’s very hard - but if you can do it, then you will be rewarded with long term currency trading success.

Winning traders have a plan and execute it with discipline.

They are prepared to stand along and not rely on anyone else. Its uncomfortable being along and standing away from the crowd - after all, man is a pack animal and seeks approval of his peers - but in forex trading run with the crowd and you will lose.

There are few occupations that give you the earnings potential of forex currency FX Trading and providing you are prepared to get the right education and learn to get the right mindset there is no reason why you cannot enjoy currency trading success.

It is the aim of all retail Forex traders to make money from the market. We read books, take courses and search the web for all kinds of Forex-related information to best educate us on how to trade profitably.

Unfortunately, most of the time retail traders are looking to learn about the wrong kinds of things. We spend our time looking for the “best and latest” techniques and systems with the hope of making money once we adopt them.

The truth, however, is that there are other more important aspects of Forex trading that we should all be paying attention to… and these are the aspects that separate a consistently winning trader from a consistently losing one.

Forex Education Topic 1 - Understanding Leverage

One of the biggest attractions of Forex trading is leverage. We are all aware that in the Forex market, we can trade with a large amount of currency using only a fraction of our own money.

What most retail traders don’t realize, however, is that leverage actually plays a major role in how they should manage their money (and risk).

Simply put: the more leverage one trades with, the smaller the stop-loss allowance would be available to them. If you don’t know why this is so, I highly recommend that you study the impact of trading with leverage more carefully and how it affects your money management system… too many beginner traders have wiped out their accounts because they didn’t truly understand the risks involved here.

Forex Education Topic 2 – Understanding Yourself

Among all the aspects of profitable Forex trading, this is arguably the most difficult to master. You can have the “best” trading system in the world; but if you find it hard to trade according to its rules, then it’s still useless.

Understanding your own risk appetite is a crucial component of deciding which trading system you should adopt. If you’re an aggressive trader, find a trading system that reflects your style. And vice versa if you’re a conservative trader.

An old trader once told me, “The market is the perfect place to discover your true flaws”. And now, I finally realize what he meant. My flaws of greed, fear and discipline have all been exposed to the market… and it’s through the conquering of these flaws that you can emerge as a profitable trader.

Don’t trade if you’re not prepared to have your vulnerabilities exposed by the market.