Most Beginner Forex traders still don’t understand the concept, structure and programming of the Financial markets. They keep researching and researching for various trading systems that will end up being a ‘Holy grail system’. Forgetting the fact that such does not exist in the Financial markets. All professional traders who have been making consistent profits for years upon years knows that you can’t escape loss trades in this business.
Come to think of it, competent doctors loose patients, competent lawyers loose cases and even a competent pilot does not stop a plane from crashing. So why in the world cant a competent trader loose a trade? Switching from one trading system to another is like a cancer in trading. It keeps killing your equity gradually till there’s nothing left. Have it in mind that every trading system has its own strengths and weakness, its own winning and loosing streaks.
Before implementing a trading system, make sure you have studied and understood it well. How it works, the best time to apply it, its accuracy, the worst draw-down it could experience and lastly how it influences your psychology (emotion). If you are swing trader, focus on your swing trading and dedicate all your brain power in developing and being a master of it. Such applies to trend traders, break-out traders, news traders, scalpers etc. Stop being a ‘jack of all trades’ hopping from one system to the other. Every trading system in the Forex markets works, its the traders that have the problem, this is what i have concluded about Forex trading as a whole.
Lastly the 2 most important ingredients to master when you have finally concluded on the trading system you want to implement with your investment is ‘Money Management’ and ‘Trading Psychology’ . I have met competent traders who presently are still in search for signal providers or fund managers because they lack this factors. Its not that they can’t speculate currency markets correctly but they cant handle the emotions involved in trading. However we all have to learn to master this factors because there is nothing like being in control of your trading career, it gives you a feeling of Financial Independence.