Probably, all the things in this world are based on a difference. Two exactly the same cars turn out to be different in further usage – one of them brakes down faster for some reasons. The same ball at hand does not make two basketball players equally skilled. And so is with Forex trading.
From my own experience, I would say that there is no perfectly profitable system, which would suit two traders at once. As a rule, one of them “drowns” (gets losses) and another “stays afloat” (earns profits). And they both were using the same system.
The major reason for this frustrating disparity is that most of the best and profitable trading systems do not have adamantly set rules. When certain market conditions are met, we often clear entry/exit points and get clear instructions to take a trade. However, it’s often left to us, the traders, to only trade the very best set-ups, so we should be capable of reading the markets and using our intuition.
This is definitely my case. Weekly, I usually enter between two and five trades with the major currencies, and, as a rule. I turn down a few trades just because they do not feel reliable.
Trading Forex is close to fisherman’s activity. Year by year you are developing a “sense” of where to throw your bait and what fish is likely to be caught. Forex market sense does also develop with experience. After a while, you begin to stop focusing on the best-probability set-ups only and learn how to avoid some riskier borderlines.
Another reason why profits don’t come easy to some FX traders is lacking of an ordinary discipline. Some traders don’t accept losses at all. So when they have several in a row, they forget about the discipline and begin upping the stakes, trying to catch up. From my own experience, this is a sign of the losing traders, not the winning ones.
And yet, there is a simple reason why one trader is “more Pele” and his friend can’t even kick a ball properly. The core is hidden in time constraints and some other issues. Look, I am the boss for myself and work from home. So I have much more freedom for sitting around and watching the markets, following the news, studying the graphs, doing calculations, etc. All of that is for the sake of the best set-ups. During this time other traders (full-time employed) do not have such conditions.
Furthermore, saying about the disparity reasons, I can’t help paying attention to the “time” issue, which demands smart moves from traders. If I am using my break-out system in early morning (it is 8.00 in UK), my trading pal in the US is definitely experiencing the “luxuries” of the New-York midnight. On the other hand, I give you another example. You may choose the same system to trade with the US market open, but this could be less effective because all the major currencies have already made their moves by then.
So, my straight point is that universally profitable trading systems mostly exist in Internet advertisements. I say “mostly” because of Forex industry specifics – there is always a probability. As two people differently play football, they can also differently read the indicators which are used for trading.
Tips on how to choose profitable trading systems
So here the final out coming tips for you:
· Find your own working system, which is the best for you.
· Stick to this system no matter losses you face.
· Check if this system proves its effectiveness in the long run.
Brought you by Alexander Collins, creator of some profitable trading systems that work since 2007. Feel free to visit http://www.forexeasystems.com/automated-forex-trading-systems where I found best automated Forex trading systems as well as freebie that shows actual Forex news directly on chart in real time and detects trend on each time frame.