Jumat, 01 Februari 2008

You Can Learn The Forex Trading Holy Grail

by Mark Rayner

This is a very special message to everyone searching for the forex trading Holy Grail system. I intend to reveal it in this article. Before I begin, I would like to say that anything worthwhile in life takes time and effort to master. Trying to learn forex is no different

It's quite common to find traders that don't make money even when there were plenty of profitable trades. How does this happen? The short answer is they trade through fear, and fear makes you lose focus of the bigger picture. The bigger picture is that you will have losing trades, and you will have winning trades. The fearful trader loses money because they tend to jump in on the loosing trade, get scared, stop trading, and miss the winning trades.

When you finally realize that your emotions are the cause of your losses, you will be amazed at how a small shift in attitude can turn a losing month into a winning month. You will also find that you can learn forex trading better when you are relaxed.

So the first holy grail in trading is: "if you are not in control of your emotions, your emotions are in control of you" and for the most part, our emotions are illogical. Ask Spock.

One important truth about indicators is that they are only designed to present price action in a different way. Price action itself is the absolute truth about what is currently happening in the market. Price action is what is happening to your bars, and what resistance/support levels are being reached/breached. If you can understand the driving force behind these moves, you can better understand the market.

When you trade, try to think about the other traders in the market. What are they thinking? Institutional players know how to gauge this sentiment, because beginner traders are very predictable. So learn to read the Forex market in this way. Never forget that price is moving because other traders are making it move.

"Never forget that it's the sum total of the actions of all the traders in the market that drives its movements."

Most people search for the "system" first and then try to trade it without understanding why and how it works. This is very difficult to do, as you will not have confidence in it. It is better to find a system that makes sense to you, and is closely related to price action.

When you learn forex trading, you can never ignore the other factors affecting the market. You must have a holistic view. Did news just come out that strengthens the dollar? Did price just reach the 200 ema on the 4 hour chart? Did a head and shoulders just form? is price hitting the top of a channel on the daily chart? It does not matter what system you use to pull the trigger, if you ignore everything else.

You don't have to be an expert on everything, but you do need to know what may spoil your trade. Most of my losing trades are due to something I missed, not the market.

"Learn how to take a holistic view of the Forex market, and keep track of the bigger picture"

It is very easy to overlook and dismiss the importance of this information. It is probably stuff you have heard before. While you learn Forex, you will see this advice repeated over and over again. There is a very good reason for that; all successful traders understand this information, and are successful because of it.

About the Author

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