If you scour the internet looking for forex trading systems, you’ll find that there is no shortage of methods. The problem for novice traders is trying to decide which one is "the best".
But you need to carefully consider what "the best" means. "The best" might mean that it trades a lot, and that might be appealing to you. Or "the best" might mean that it boasts a very successful track record.
But let’s take a little closer look. The successful track record may have been achieved using very high leverage over a short test period. Or it may be heavily optimized in a back testing model, showing hypothetical results only. This can be extremely misleading! PLEASE be aware of these kinds of pitfalls!
Here’s a short story. In my twice weekly training sessions, I have a client from Australia who I’ve known for quite a long time now, and like most traders out there, he, too has gone through the rough patches that all traders go through.
The kinds of issues he had to deal with were things like getting himself settled into the trading approach that suited HIM best, (meaning the types of trades, plus his time availability). And this has taken him a long time to get clear on.
But to make a long story short, once he found his "place", he committed to following his plan, and he’s up 8% over the past 3 months of trading.
Funny enough, a lot of people would scoff at those returns. That’s because they have warped expectations about trading, and they generally end up losing consistently. They never actually learn to trade properly, deferring instead for a get-rich-quick promise.
But I digress. The most gratifying part of my client’s new-found performance was that, based on what he learned from me and others, he found the approach that suited him.
And he learned to apply other key principles in his trading that are crucial for long term success. For example, he now keeps his losses extremely small. Obviously this is just huge in this game if you want to have any chance at all surviving and prospering. It’s real simple: If you lose very, very small, and you win much bigger than you lose, you’re going to preserve and grow your capital safely over time.
So when it comes to looking for a forex trading approach that suits you, do a little self analysis. Consider things such as when you’re available to trade, what time frame you like to trade, how long you’re comfortable staying in a trade, what kind of discretionary (risk) capital you have available, how much you’re willing to spend on education, etc.
And don’t hesitate to get help in answering these questions. The cost of ignorance is almost always higher than the cost of education.
All the best,
Vic Noble
**To learn more about forex trading and how I teach, I have a FREE e-Book, plus 7 great videos on key trading concepts that I believe will genuinely help you. No obligation, just good useful information!