Forex Trading Systems - Want to win 90% of the time?
by Harold Hsu
Online, you'll often read about Forex trading advertisements that boast of more than 90% winning trades.
Sounds great doesn't it? Would you pay $100 for a trading system that may win 90 out of every 100 trades?
If you answered "Yes", you're in trouble!
Unfortunately, the truth is that a high winning percentage has little to do with being a profitable trader. In reality, it's easy to have 90% of winning trades and still lose money.
Don't believe me? Go ahead a search online search for the "turtle traders". If you're familiar with them, you'll know that they are very profitable traders with only a 20% winning trade percentage.
Allow me to explain...
Imagine you make 10 trades in a month, and 9 of these trades are profitable for $1 per winning trade. This means that you have a winning percentage of 90%, with $9 in profit.
And if you have only 1 losing trade out of 10 (i.e. 10% losing trades), but you lose $10 on that one losing trade. In total, you would have lost ($9 - $10) $1 among all your ten trades.
Can you now see why a high winning percentage doesn't mean that you'll be a successful trader? You see, it's not about how often you win, but how MUCH you win.
So don't fall for the marketing tricks
Many advertisers use high winning percentages as a sales tool to get you to buy the trading systems they are selling. They know that traders like to win all the time, and who doesn't like to win often? These advertisers try to appeal to everyone's desire to win, and unfortunately many people fall for their trap.
Conclusion
It's easy to have 90% winning trades and still be a losing trader. At the same time, you can have a low winning percentage, but be a very profitable trader. In reality, winning percentages have very little to do with a trader's success.
So don't fall into the advertisers' trap when you see their "high winning percentage" claims next time. When people use high winning percentages as a sales pitch, chances are that they know very little about what it truly takes to be a successful trader. Be careful!
FAPTURBO FOREX TRADING PACKAGE
Fapturbo Is The Only Automated Forex Income Solution That Doubles Real Monetary Deposits In Under 30 Days. No Backtest Tricks. The Best Converting And Best Performing Forex Product On The Planet, Period. No Wonder It Sells Like Candy.:
click here for more Information
Showing posts with label Forex Information. Show all posts
Showing posts with label Forex Information. Show all posts
Forex Trading Systems - Want to win 90% of the time?
Saturday, April 4, 2009 Forex Information, Forex Market Timing, FOREX Money Management, Forex Quote, Forex Trading Systems
FOREX Money Management - The Key To Long Term Profits
Tuesday, March 24, 2009 forex experience, Forex Information, FOREX Money Management, Forex Quote, Forex Scalping
FOREX Money Management - The Key To Long Term Profits
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose
Monday, March 2, 2009 forex experience, Forex Information, forex signals services, forex trading, FOREX trading platform, Forex Trading Strategies
Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose
by kelly Price
Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.
Here they are in no particular order of importance.
1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.
These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.
2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.
Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.
If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.
If you don't follow a method with discipline then you have no method at all.
3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.
If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.
4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.
In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.
They work far better than complicated ones as they have fewer elements to break.
Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.
If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.
5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.
If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.
There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.
Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.
If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.
by kelly Price
Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.
Here they are in no particular order of importance.
1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.
These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.
2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.
Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.
If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.
If you don't follow a method with discipline then you have no method at all.
3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.
If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.
4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.
In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.
They work far better than complicated ones as they have fewer elements to break.
Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.
If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.
5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.
If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.
There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.
Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.
If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.
Forex Information Resources For Better Trade Decisions
Monday, February 23, 2009 Forex Information, Resources, Trade Decisions
Forex Information Resources For Better Trade Decisions
by Paul Bryan
The concepts of Globalization have changed the forex trading dramatically over the past several years. New investment strategies and instant electronic trading now ensures high returns for the investors. Therefore it has become quite important for the traders to have authentic forex information. Internet and other electronic sources like CDs, DVDs, etc., are fast replacing the conventional resources like books, magazines, etc.
The advantages of these electronic sources are there 'interactive' modules and ease of navigation, which make them faster and more effective for even beginners to comprehend the information. Dynamic features like search or graphical representation of live data with two or three dimensional charts, graphs, and 'easy to learn' e books are presented quite attractively to help the readers in understanding the subject.
You can have online forex information on:
· Forex definitions and terms including glossary,
· Market background information and the developmental stages of the trading,
· Trading strategy and decision making,
· Different methods of Technical and Fundamental analysis,
· Controlling the risk.
Forex trading has long been recognized as a superior investment opportunity and the market is expanding to the individual small or medium traders than ever before. If you are powered by the knowledge and keep yourself informed, you have huge potential for earning from the market. Internet sites offer you wide ranges of e books which are classified in different groups like: forex books for beginners, books on market in general, on market profile basics, money management, trader's psychology, strategy and even books for advanced traders for supplementing their knowledge.
Forex information in the form of articles is again an exhaustive resource. One single site may present 2000 featured articles from which you can read any depending on your needs. These articles can be on brokerage, technical and fundamental analysis, money management, general tips or strategy building etc.
There are vendors or market professionals who offer forex tips and signals, which you can have by subscribing to their services. You can have information on forex market analysis, charts and technical analysis, trading platforms, facility to open demo account, etc. Different forex forums and groups are again a very useful resource for authentic information. You may find your queries being answered by veteran forex traders and the best thing is, most of the time, these tips are free. These traders very often share useful strategies and tips that proves to be extremely helpful. Other than these electronic resources, you can always authenticate the forex information from books and magazines. Crash courses and short term seminars organized by different universities also prove to be helpful for those who are comfortable with the conventional class room mode of learning. Another advantage of these seminars is you get your doubts cleared by the experts directly. So the buzzword is to get informed and educated before you tread into the trade.
by Paul Bryan
The concepts of Globalization have changed the forex trading dramatically over the past several years. New investment strategies and instant electronic trading now ensures high returns for the investors. Therefore it has become quite important for the traders to have authentic forex information. Internet and other electronic sources like CDs, DVDs, etc., are fast replacing the conventional resources like books, magazines, etc.
The advantages of these electronic sources are there 'interactive' modules and ease of navigation, which make them faster and more effective for even beginners to comprehend the information. Dynamic features like search or graphical representation of live data with two or three dimensional charts, graphs, and 'easy to learn' e books are presented quite attractively to help the readers in understanding the subject.
You can have online forex information on:
· Forex definitions and terms including glossary,
· Market background information and the developmental stages of the trading,
· Trading strategy and decision making,
· Different methods of Technical and Fundamental analysis,
· Controlling the risk.
Forex trading has long been recognized as a superior investment opportunity and the market is expanding to the individual small or medium traders than ever before. If you are powered by the knowledge and keep yourself informed, you have huge potential for earning from the market. Internet sites offer you wide ranges of e books which are classified in different groups like: forex books for beginners, books on market in general, on market profile basics, money management, trader's psychology, strategy and even books for advanced traders for supplementing their knowledge.
Forex information in the form of articles is again an exhaustive resource. One single site may present 2000 featured articles from which you can read any depending on your needs. These articles can be on brokerage, technical and fundamental analysis, money management, general tips or strategy building etc.
There are vendors or market professionals who offer forex tips and signals, which you can have by subscribing to their services. You can have information on forex market analysis, charts and technical analysis, trading platforms, facility to open demo account, etc. Different forex forums and groups are again a very useful resource for authentic information. You may find your queries being answered by veteran forex traders and the best thing is, most of the time, these tips are free. These traders very often share useful strategies and tips that proves to be extremely helpful. Other than these electronic resources, you can always authenticate the forex information from books and magazines. Crash courses and short term seminars organized by different universities also prove to be helpful for those who are comfortable with the conventional class room mode of learning. Another advantage of these seminars is you get your doubts cleared by the experts directly. So the buzzword is to get informed and educated before you tread into the trade.
Subscribe to:
Posts (Atom)
