Winning Forex Trading
The Whole Point Of Trading
Why do we trade? Money. Let's keep that is the front of our minds. Traders get carried away with all the fun fancy stuff they can do. They get carried away with the thrill. They get carried away with the analysis, but trading is all about making more money.
That's the whole point of this website. It's to show you how to win more. Why did you start trading in the first place (or if you're not trading yet, why did you originally think about it)? It was the financial reward. Okay, so together let's take a journey down the path of becoming better traders.
Overview Of Winning
Really quickly, I just want to give you an overview of the three most important things that are forgotten by many traders (dooming them to become losing traders).
- Keep it simple. The simpler your trading regimen and trading rules are, the more likely you are to follow them. Make it easy. Make it simple.
- Don't care. This is the hardest thing for traders to master. You need to figure out a way to not care about your individual trades. You start caring, and you start stressing. You start stressing, and you'll make a mistake. Make a mistake, and you've lost. I guarantee you this is the reason professional fund managers never consistently make large returns. The managers are thinking way too much about what the investors will think of their every move.
- Be sure you have an edge. For much more detail on this see my trading systems page.
P.S. Why Trading Isnít Gambling
There appears to be a lot of correlation between gambling and trading. Both can seem random. Both have more losing participants than winners. Both use similar terminology.
So, is trading gambling? No.
You see, trading does one thing that gambling doesn't. It creates value. When two businesses in different countries want to do business, they need to exchange currencies. When a traveler visits another country, he/she needs currency exchanged. When a high net-worth individual wants to invest overseas, currency needs to be exchanged yet again.
Yet, if there were no small forex traders, there wouldn't be anyone to take the other side of the trade for these necessary transactions. So trading creates value, because it allows money to flow freely from country to country as business is done.
Gambling on the other hand creates no value. It was created strictly for the entertainment value, and that's the difference between the two.