If you want to win at Forex trading, you need to know how and why prices move and while this may sound obvious, most traders simply believe common myths, base their trading on them and lose all their money.
Most losing traders believe one or all of the myths below and if you want to win at Forex trading, you need to avoid them at all cost.
Forex Prices Respond to the News
Forex prices don't respond to news at all, prices respond to a traders view of the news and you often see markets collapse on bullish news and rally on bearish news - why?
Because we all have the same facts to look at but we all draw our own conclusions from what we see and our view is influenced as much by our emotions as logic.
If you want to trade successfully, forget trading news stories and look at the market price on a chart and trade price action only and you will be trading the reality not opinions.
Forex Prices Move to an Equation and can be Predicted
This is a favorite story of the Forex software sellers but they all their systems get wiped out. If there really was a way of predicting Forex prices in advance or they moved to a set equation there would actually be no market - prices move on uncertainty not certainty!
Traders have been trying to crack the code of the market since trading began but have never found it, because there isn't one.
If you want to win, simply understand Forex trading is an odds game and while you will lose at times, so long as you cut your losses and run your profits you will make a lot of money.
You can trade Daily Ranges
Forex scalping and day trading works on the theory you can work out what millions and millions of traders can do in a matter of minutes or hours but the fact is all short term volatility is random, you can't get the odds on your side and you can't win.
In days gone by when the floor trader had the price action before everyone else, he could get a quick trade in and make money but with the rise of the internet and instant price access for all, this advantage has gone.
If you want to win, you need to trade longer time frames where you can get the odds on your side and forget trading the short term market noise.
Understand the Following and Win!
If you want to win use a simple system and simply trade the reality of price change and forget prediction and tracking the news then, simply focus on the long term trends and learn to cut your losses and run your profits and you can make a lot of money.
Forget perfection it's not possible and focus on trading the odds and making money.
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