Forex Trading System That Suits Your Psychology

Published: 11th September 2008
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Most people when they first come to trading Forex start jumping form one Forex trading system to another as soon as it gives them a losing trade. I was one of such traders. I was looking for the perfect trading strategy that never fails. I know by now that a trader can be successful regardless of the system.

It is interesting to see how even successful traders argue about which trading system is better and which strategy is more profitable. Usually they advocate their own system and trading style since they are making profit with it. What they don't realize that the system they pick suits them better than other systems.

If one trader is very patient then he will be more successful trading longer-term strategies. He can patiently wait a few days while his trading position matures. Another trader may not be so patient but instead he can have a better emotional control in a shorter period of time. Then such a trader can more successfully trade short-term trades or even scalp the Forex.

Personally I hate scalping. First of all its to emotionally challenging for me to watch that small fluctuations of the market. The second reason is spread. As you may know Forex brokers do not charge commissions for trades. There is a spread between buy and sell prices that goes to a broker. Now if I traded a scalping system I would enter the market about ten times a day to make a significant profit.

Let's say I am trading currency pair that has two pips spread. By entering the market ten times I lost twenty pips already. It ads up into 100 pips a week or 400-450 pips a month. You see how it's hard to succeed with such a system. On the other hand for swing system I enter the market once in a few days and target profit is usually over hundred pips. This kind of style suits me the best.

I don't mean to put down any trading style. If scalping works for you by all means continue doing it. My main point here is that first you need to study yourself. Once you know your preferences, your strengths and weaknesses then success in trading will becomes much easier for you.

Albert Schmidt is a part-time currency trader. After quite a few months of struggle he learned to make consistent profit trading in Forex. Review a trading strategy that he is trading successfully. Or read another article about 10 Minute Forex Wealth Builder.

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