You may think the answer is obvious but its not if it was 95% of forex traders would not lose their money. Most trades simply have no idea how and why prices move -if you do you can become a winner at forex trading.
Let's start with a simple equation which causes forex price action:
Fundamentals (Supply and Demand) = Human Perception of Them = Price
Now that might seem simple – but most traders do not understand its significance or its true meaning and make these assumptions that see them lose:
– You can day trade markets
– You can predict price action
– Forex markets move to a scientific theory
– You can trade the foundations and win
If believe any of the above you are going to lose lets look at why, how to avoid the traps and get a forex trading strategy for profits.
– You can Day Trade and Win
No you can not – it's obvious that with millions of humans looking at the facts you can not judge what this vast mass will do in a few hours – all short term volatility is random.
– You Can Predict Price Action
Prediction is another word for hoping and guessing and that will not get you far in life let alone forex trading.
– Forex markets move to a Scientific Theory
This really leads on from the above and there is no scientific formula – if there were we would all know the price in advance and there would be no market!
– You Can Trade The Fundamentals and Win
It's not the fundamentals that are important its how there perceived that determines the price. We all have the same facts to look at but all draw different conclusions from what we see. So just looking at the fundamentals on there own is a losing game.
The Best Forex Trading Strategy to Win!
The best way to win at forex trading is simply to forget predicting and trying to follow the forex fundamentals and follow forex charts. Why?
The reasons are simple and compelling:
– We all know the news in a split second so all technical analysis does is assume that fundamentals will quickly show up in price action so you do not need to worry about them. Your real aim is to see how investors perceive them and this is shown clearly on the chart, no hiring or guessing, you act on the reality of what you see.
– Human psychology may not be predictable with human accuracy – but it is constant. This means that it repeats itself and this can be seen in high odds chart set ups which can be traded for profit.
You are not bothered about how prices move or why, you just want to profit when they do.
On a forex chart, you are seeing the reality of price change and can execute your trading signal based upon what you see.
With a bit of practice, you will soon be spotting and locking into long term trends and if you have learned the right forex education, you could soon be making big forex profits in around 30 minutes a day.
Perhaps no other business offers you so much profit potential for the time you put in, if you have the right mindset and practice your art, you could soon be piling up some big FX profits providing you know and can act on forex trading price action.