Friday, July 30, 2010

Forex Trading Success — Three Popular Forex Trading Strategies That Lose Money To Avoid

Here we are going to look at three popular Forex trading strategies which the bulk of all new traders use and they are all doomed to failure so make sure you avoid them or you will lose to, here they are.

Let’s take a look at all strategies which involve making no effort and buying the vast amount of Forex Robots and Expert Advisors.

1. Automated Predictive Software

How many cheap hundred dollar systems do you see online which tell you they can make you an income for life with no effort, because they have software that predicts the future? Of course, there are lots of them, they all lose and their predictions always turn out to be the opposite of what they claimed. You cant predict markets in advance because humans are not predictable!

Most traders are emotional traders and not logical, if you could predict the future there would be no market, as we would all know the price in advance. Avoid these cheap get rich quick systems, you don’t win in a market were 95% of traders lose by making no effort and spending the cost of a good night out.

2. Any Forex Scalping or Day Trading Strategy

Any system based on the above will lose long term — think about what you have to to win:

You have to decide what countless millions of traders will do in advance, all with different skills, aims objectives and emotional make up and to make it even harder you have to decide what they will do in a few minutes or hours.

All volatility in short term time frames is random therefore, you can’t get the odds on your side and you can’t win. Avoid these short term trading strategies.

3. Using Someone System or A System your are not too Familiar With

This has to be one of the most amusing and dumb ways to trade Forex, I’m not trying to say that system doesn’t work no its does only when you master it very, then you can stick to it as your trading system. in fact, to will in forex market you need to have your personal trading style which is the system you develop overtime.

Personal, as i speak, i have my style of trading which i do give out to people who want to use my style of but i do tell then to try it out on demo before taking it live.

If you want to Win at Forex

Get a simple Forex trading strategy, based upon trading the odds which doesn’t predict but executes its trades on the reality of price change and you can enjoy long term currency trading success.