Forex Trading Facts - Understand These Key Facts to Win Big Profits

Here are some facts that many traders don't consider if you do then you can win at forex and enjoy currency trading success...

Here are your facts in no order of importance they ALL contribute to your success!

Fact 1. Forex Trading is NOT Easy!

Of course it isn't that's why so many traders lose - 95% but the good news is with a bit of effort, you can win and make a lot of money. You simply have to know what you are doing (forget junk robots and mentors telling you it's easy to follow them), if you do you follow them, you will lose.

Understand you need to do it on your own - but if you do put in effort, your rewards can be huge and this does not mean working hard.

FACT 2. The Work Ethic Does NOT Apply

In many jobs you get paid for the hours you work and are rewarded for the amount of time you spend working. In forex trading you get your reward for being right and this means working smart not hard.

You can learn to trade in about 2 week and in 30 minutes a day or less and earn big profits

FACT 3. Being Clever is NOT an Advantage

Simple forex trading strategies work best try and complicate your trading system and it will have to many elements to break and will lose. Keep it simple is wise advice when seeking forex profits.

Fact 3. Discipline is the Key

You need to have iron discipline, this is the hard part of forex trading, to trade through losing periods and stay on course, until a winning run occurs. If you don't have discipline to follow a system - you don't have one!

FACT 4. Picking Trend Direction is Easy

Compared with staying with the trend. When you trade you must execute your trading signal at the correct level and have your stop and trail your stop so you don't get stopped out by volatility - this is much harder to do and many traders get the direction right, only to be stopped out by random volatility and see the trend go back the way they thought and their not in.

This is a major problem and you need to make a study of standard deviation of price, part of your essential forex trading education.

FACT 5. You need to Know Your Trading Edge

A trading edge is personal to you and something you understand, have confidence in, which you know, if you apply with discipline, will lead you to currency trading success.

Following someone else is not an edge! Its personal and if you don't know what yours is, you don't have one.

FINALLY The Good News ...

Forex trading looks easy yet, few succeed but if you understand the above points you are well on your way to achieving forex trading success.

You have to work and you have to work smart to get a forex trading system, you have confidence in and can apply with discipline. If you do this correctly, the rewards can be life changing.

Forex Money Management

If you want to get rich, no matter how inexperienced you are in investment, then one of the best places to start is with the book the Zurich Axioms and here we will look at some that you can apply to forex trading to supercharge your gains...

In this article we are just going to focus on the risk element of the Zurich Axioms and how it relates to forex trading although the book gives you loss more great investment advice and is one of the greatest books on speculation ever written.

Love Risk!

The 12 major and 16 minor Zurich Axioms contained in the book are a set of principles providing you with realistic management of risk, which can be followed successfully by anyone, not merely 'experts'. When dealing with risk, you have to see it as opportunity manage it and love it, as its your route to trading success

The book teaches you to take risks and meaningful ones at the right time which is what you have to do to make money in forex. You have to manage risk and the Axioms, will show you how.

Several of the Axioms do not conform to traditional wisdom but don't let that worry you, most forex traders lose, yet the Swiss speculators who devised them became rich and the proof as they say is in the results.

Let's look at the major Axiom on risk and how its view is very different to what most so called experts teach.

Axiom 1: On Risk

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough. Put your money at risk. Don't be afraid to get hurt a little... Worry is the hot and tart sauce of life. Once you get used to it, you enjoy it".

Most people are so afraid of risk they actually create it in forex trading. They end up having stops so close their bound to get stopped out or think they can make a regular income etc and then they get the reality check.

Related to the above Major Axiom are two minor ones which most forex traders would be wise to learn Minor Axiom I

"Always play for meaningful stakes".

How many times do you hear experts tell you to risk 2% of your equity? All the time but for a forex trader with a small account the reward isn't going to be much say you have $1,000 and risk 2% that's $20 bucks!

If your stop is that close. Then you are going to lose quickly.

My own view has always been look to risk 10 - 20% of your equity. If the opportunity looks good hit it hard and go for a meaningful gain. This isn't being rash it's how to win and if you don't like doing this then forex may not be for you.

Minor Axiom II

"Resist the allure of diversification"

Diversification is another word for diluting your gains and if you diversify on a small account you will end of getting no where. Why on earth, would you want to simply diversify when you have a great high odds trade?

All you will do will see your great trade diluted by one that's probably an also ran. Forget diversifying and hit the high odds trades with all you have and concentrate your effort on that trade. You don't need to trade often be patient and wait for the high odds trades.

Sure most experts don't agree with the above and it's not conventional wisdom but how many traders are so frightened of risk they never take enough risk and get stopped out by volatility, or listen by so called experts, who tell them forex trading isn't risky, when of course it is by its very nature.

The truth is forex trading is risky and if you learn to love risk, play for meaningful stakes and hit the high odds trades hard, you can win and make triple digit profits.