Successful Forex Trading Strategies
You’ve probably come here in search of a forex trading system that will make you rich in a matter of days. The problem with that idea is that there is no system that will do that for you and that doesn’t risk draining all your money in the same amount of time.
Sure, there are plenty of systems for sale on the internet. You can find systems for as little as $39.95. Sure, something you buy on the internet for under $40 will make you millions. Sounds plausible, right?
It’s more likely that the person selling the system will make it to a million dollars before you will. If you have ever read about the gold
rush in the 1800’s, you might be surprised to learn that most of the people that got rich were actually the merchants selling tools to the prospectors that were looking for gold.
None of this is to say that there isn’t money in trading forex. There absolutely is, just not in the way that you typically hear about it. Forex trading is similar to stock investing, but there are more opportunities for both success and failure.
So, how do you find a 100 percent accurate forex trading system? Stop looking; they don’t exist. There is just no such thing as something that will make you rich, risk-free, or work-free.
The good news is that you can develop a solid forex trading system that keeps the odds tilted in your favor. You can find some trading systems out there that will yield some results. You just have to accept that nothing is perfect. Early in my trading days, I traded a system called the Bunny Cross. It was a basic system traded by a member on a forum that I frequented while trying to learn forex trading. It worked OK, but it required me to be up half the night waiting for a signal, and that was no good for me, so I moved on.
Finding a trading system comes down to finding something that you feel comfortable with that actually works. It’s about managing your risk appropriately and not getting in over your head. There are some systems that work really well if you have tight forex risk management. Trading forex online doesn’t have to be ultra risky. You don’t have to use a lot of leverage just because it is offered. You can develop your own low-risk system that will turn a regular profit for you. It might not be like those systems that you read about that can provide real wealth for
$39.95 (the most impressive part of those systems are always the salespages), but it can be something that will help you earn a steady income from forex trading over the long term.
For example, you may see a lot of “systems” that say that they can bring you a 300% profit in just a short time. That isn’t very likely, but would you be happy with a 3 percent return a month? A 3% return on your money in a month is greater than most banks offer in a year.
Without the effect of compounding profits, 3 percent a month comes out to 36 percent a year. If you are careful, it should be pretty easy to develop a simple forex trading system that will generate an average of 3 percent a month.
The forex trading industry is all about how you look at it. If you were to buy every cheap forex trading system out there, you might just quit and think forex is a scam. Some people probably feel the same about trading stocks. Forex trading is a legitimate investment vehicle; you just need to treat it with a little respect. Trading forex can be a profitable enterprise, but you need to learn what you’re doing and what you’re trading. Develop strategies and test them. Think of this the same way you might think about picking a company to invest in.
It takes time and effort. There are no easy answers.
All of this said, forex does hold some advantages over other markets.
It’s open more days and hours than any other market, and you get the freely available use of leverage. Used properly, these are advantages. It’s all up to you and your due diligence in the end.
