Apologies for not posting for a while, but i have been really busy with new students. As Christmas is nearly upon us and the markets are pretty quiet, i thought i would write a post about how to find the best Forex trading strategies.
Can you really find a great Forex trading strategy?
Every Forex trader is looking for a great Forex trading strategy, but finding something that works consistently well, is very difficult for the average retail Forex trader. There are 100’s of strategies you can use to trade Forex, most will fail miserably, but with strict money management, you may find a few that you could make some money with.
The problem with the majority of Forex trading strategies that are employed by retail traders, is that they are based on beliefs about the Forex market that are inaccurate. So a trading strategy based on those beliefs cannot be successful long term.
How do i trade?
I am a very matter of fact trader, and i trade a rules based method, based on a complete understanding of the market, and advanced price action trading. I enter and exit trades at key reversal points to maximize profitability, and to minimize losses. Forex trading as far as i am concerned is very black and white. I don’t waste my time trying to find strategies that work. You really don’t need to do that. All as you need to be a successful Forex trader, is a complete understanding of how the market works, and the ability to read the chart. I have that understanding and ability, and i trade very successfully based on knowledge, rather than weak retail trader strategies.
There are only really 2 ways to trade as far as i am concerned. The right way and the wrong way. On one side of the fence you have retail traders, or the 95% as i like to call them. And on the other side of the fence you have the professional Forex traders, or the 5%.
The 95% waste years trading and back testing 100s of trading strategies, strategies that are never going to work long term, as they are based around rules and beliefs that are inaccurate. The 5% know how to trade, so they spend all their time trading and making money. Now if you are reading this and thinking “this guy does not know what he is talking about, i have been testing this really good strategy for a few months now, it just needs a little bit of tweaking and it will work just fine”, you are more than likely in the 95%, and you need to forget about back testing, and start learning. What i do works, it has always worked, and it will always work. It does not need back testing.
Finding the missing piece in the Forex puzzle.
I remember when i first started trading, it was really hard. Nothing seemed to work well enough to make money consistently. Everything i tried was not quite cutting it. It was as if i was almost there, but i just needed the last piece of the puzzle to be consistently profitable.
Now if you are in the same situation right now, i am going to let you into a little secret. You will never find the last piece of the puzzle, because the puzzle was created without all the pieces, so no matter how hard you try, you will never find that missing piece.
Traders that join my training and mentoring program often say that they need my help to find the last piece of the puzzle. When i show them how the market really works, and how to be consistently profitable, they are completely blown away, and they quickly realize that the puzzle that they have been trying so hard to complete, can never be completed.
And the reason it can never be completed is because its based around beliefs about the market that are inaccurate. So how can you complete a puzzle if the pieces are wrong to start with? When i teach my students the full story, they can then embark on their journey to becoming a consistently profitable Forex trader.
So what are your options? The education and understanding that i give traders totally transforms their trading, so the best advice i can give you is to enroll on my Forex training course, but if you do not have the money to invest in that, then i suggest you forget about trying to find the best Forex trading strategy, and concentrate on studying charts.
All the information you need to be successful in trading is in the chart. Study the lower time frame charts like the 5 min and the 1 min and see how price moves. Its not going to be easy, and it could take you 1000s of hours of study, but i can honestly say that time you spend studying the smaller time frame charts, will be far more benefit to you than back testing weak Forex trading strategies.
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