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Thread: Forex Trading Success - Understand These 2 Equations or Lose

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    Default Forex Trading Success - Understand These 2 Equations or Lose

    Enclosed I am going to give you 2 simple equations and if you want to win at forex trading you need to understand their significance or lose, so here they are.

    1. How Markets Really Move

    Supply and demand fundamentals + Investor perception of the facts = Price

    Well thats nice and simple!

    Yes it is but most traders dont understand the significance of the equation and try and trade the fundamentals (news stories) and think it gives them an edge - it doesnt. Its how investors perceive them thats important, they are highly unpredictable and dominated by greed and fear.

    Other traders think that forex technical analysis is scientific, as of course human nature is constant, they therefore think they need to predict prices but this is impossible as well and they lose.

    If you understand the above you will realize that trading is game of odds -not certainties and it is investor sentiment that drives prices and the best way to win at forex is to use forex charts but not predict just follow the reality of price change.

    2. The next equation for forex trading success is:

    Understanding + Confidence = Discipline = Forex trading success

    Again a simple equation but its one again that most traders fail to understand.

    Trading is more about mindset than method as even if you have a good forex trading system you still have to apply it or you have no system!

    The fact is you wont follow forex signals or systems unless, you understand the logic and have confidence in it. When you hit a string of losses (and you will) you will only trade with discipline if you have confidence.

    Consider how many traders simply buy a forex signal service or system from a vendor and believe the marketing hype - that it will help them win or make them rich.

    What happens? They all lose as they lack confidence or discipline.

    Consider this fact:

    Anyone can learn currency trading and anyone can win - but 95% of traders lose.

    The reason is they fail to understand the significance of the two equations above.

    They dont understand how and why FX markets really move or the link between method and mindset to apply it.

    If you understand the above, you could be on the way to making huge regular profits.

    You will realize that the way to win is based on understanding what you are doing and having confidence in it - it is simple, yet most traders just dont get it - trading success comes from within.

    Forex trading offers huge rewards and if you keep the above in mind and work smart you could enjoy forex trading success.
    blogger.2bull.com

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    Default

    Quote Originally Posted by fxcat789 View Post
    Enclosed I am going to give you 2 simple equations and if you want to win at forex trading you need to understand their significance or lose, so here they are.

    1. How Markets Really Move

    Supply and demand fundamentals + Investor perception of the facts = Price

    Well thats nice and simple!

    Yes it is but most traders dont understand the significance of the equation and try and trade the fundamentals (news stories) and think it gives them an edge - it doesnt. Its how investors perceive them thats important, they are highly unpredictable and dominated by greed and fear.

    Other traders think that forex technical analysis is scientific, as of course human nature is constant, they therefore think they need to predict prices but this is impossible as well and they lose.

    If you understand the above you will realize that trading is game of odds -not certainties and it is investor sentiment that drives prices and the best way to win at forex is to use forex charts but not predict just follow the reality of price change.

    2. The next equation for forex trading success is:

    Understanding + Confidence = Discipline = Forex trading success

    Again a simple equation but its one again that most traders fail to understand.

    Trading is more about mindset than method as even if you have a good forex trading system you still have to apply it or you have no system!

    The fact is you wont follow forex signals or systems unless, you understand the logic and have confidence in it. When you hit a string of losses (and you will) you will only trade with discipline if you have confidence.

    Consider how many traders simply buy a forex signal service or system from a vendor and believe the marketing hype - that it will help them win or make them rich.

    What happens? They all lose as they lack confidence or discipline.

    Consider this fact:

    Anyone can learn currency trading and anyone can win - but 95% of traders lose.

    The reason is they fail to understand the significance of the two equations above.

    They dont understand how and why FX markets really move or the link between method and mindset to apply it.

    If you understand the above, you could be on the way to making huge regular profits.

    You will realize that the way to win is based on understanding what you are doing and having confidence in it - it is simple, yet most traders just dont get it - trading success comes from within.

    Forex trading offers huge rewards and if you keep the above in mind and work smart you could enjoy forex trading success.
    blogger.2bull.com
    thanks for this post it is quiet educative i also believe that if every newbie should follow this your equation they will do well.

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    there are so many similar posts

    boring

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    "Supply and demand fundamentals + Investor perception of the facts = Price".
    that's right, you said the point,
    "Its how investors perceive them that’s important, they are highly unpredictable and dominated by greed and fear."

    so, what can we do with it? Is there any way to predict the investor perception? if not? what can we do then?
    "the best way to win at forex is to use forex charts"
    use forex charts? it's that technical analysis ?

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    this isnt the trading system i guess
    it comes in articles section

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    I must say that Forex is not easy, and many times we feel that someone is doing a conspiracy on us to take our money, but the truth is nothing is impossible, and others successful traders are not more intelligent than us and they are not genius from other planet, the fact is the more you work the more you become closer to become good trader. Do not quit quickly because this business deserves hard work and dedication.

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    Yes you are wright , the psycological effect is important in forex trading

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    I think, the psycological effect is not important in fx trading. In fact, psycology is THE ONLY THING that is important in Fx. All that indicators, news etc are only means to catch us up (our money). That's why fx trader must be patient in studing price river, be calm to differ the real food from the fx lure and, in case of a mistake, be able to spit out a hook in time. We must try to study fx markets by ourselves, try to find price movement's laws and only then we'll be able to live and feed long as an old wizard fat fish.

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    Indicators are good, but useless if one has not mastered his psychology.

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