So you want to make money in Forex...

What makes a successful trader and trading system?

I have been inspired to speak from the heart today because every day I see a new advertised trading system being sold for $100 or more. Why do you think you have to use an automated system to be a success? Are you afraid to trade the markets? Do you want to blame someone else for your loses? It’s time to understand what YOU have to do to succeed in building wealth for you and yours. NO MORE LOSES!!!

First step…Education and Dreaming BIG!
Read everything. Visit every website. This process can take a year or longer; so what. Do it! There are plenty of resources on the web and in your local bookstore. In order to break through the blockade you must understand the history. This is true with any venture taken on the path to a fulfilling life. Some of us have spent 15+ years in our development from a young age to become who we are today. It’s time to take steps backwards to take giant leaps forward and remember our childhood; remember how we we’re educated and the experiences we had that contributed to who we are today. The critical analysis of who we are will give you a purpose behind your trading. It’s not about profits, it’s not about YOU! This is bigger than us and our small deposits are small peas in this big world! The real questions that should be asked are why we trade and what do we want out of it?

I would recommend demo trading as much as possible until you have not one, but many mental breakthroughs. We are all given a unique eye to see the world; to act or react in given situations. Newton’s law states that for every action there is a reaction. Be aware of the implications behind every trade until it becomes second nature and you will be successful. You don’t need to double or triple a demo account, just be consistent.

Step two…A strategy should be based on your risk appetite.
Opening your first account can be quite exciting and you’ll want to jump in and trade ASAP. Be patient! Your strategy should be based on your risk appetite, so make sure you have an exit before you make any entries. Here is a quote from Sun Tzu’s Art of War,

“The general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory and few calculations to defeat: how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose.”

Ask yourself these questions:
1. Do I hold on to losing trades?
2. Do I add to losing positions?
3. Do I have sleepless nights?
4. Do I miss out because I over think entries or exits?
5. Do I let missed opportunities get me down?
If you answered yes to more than one of these then the only person to blame is yourself. You must improve on your thoughts and actions before you can develop an optimal trading strategy, go back to the drawing board. To appreciate and understand the positive and negative experiences could bring enlightenment to you and your strategy. When you can remove yourself and your emotions, you will see the market for the first time.

Step three…Greed, Fear, & Ignorance
I don’t want to write too much on these. Albert Einstein summed it up pretty good when he said these 3 forces rule the world. I would recommend studying psychology. You will see how much it impacts markets moves.

In conclusion, I have seen successful automated systems and am not completely against them. There are just way too many that have been optimized to look attractive. I would recommend saving your money and investing in your own education before using an EA. This isn’t for everyone and it’s ok to walk away. You’ll be a better person through your experience.
Last quote from The Art of War,

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

I speak from experience and I have failed. I wish nobody to go through what I went through. Sometimes you have to crawl through sh** to come out smelling like roses.

Bravo, I applaud a bright side in the ol ff, Nicely said.

My favorite is treat it like a hobby make hobby money
Treat it like a business and make business money.

your insights are helpful. Thanks for your thoughts. The traders who don't succeed are the ones who do not know their own strengths and limitations.

"know yourself and know your enemy"
your enemy is you, whether a battlefield or the market. Sun tse knew this.You make both by projecting your beliefs and then watching them like a movie whilst believing they exist outside of yourself. Einstein said there are only two things in the entire physical universe - nothing and compressed nothing. Quantum physics acknowledges that the objective and subjective realities actually have no reality at all independant of each other. Do you understand this? there is no market "out there". the market you trade was invented by you, is completely imaginary being a projection of your beliefs about yourself. This why you cannot be taught to trade it by someone else. You must find your own way as sleep1Iopen has stated.

"When you can remove yourself and your emotions, you will see the market for the first time."

This is a 1milion dollar phrase

Id say its only worth half of that at most

great post sleep1Iopen.
do i have permission to put your post on my blog ? because i find it very insightful. credit goes to you of course.

Post this anywhere you want. I could care less if anyone puts their name on it. Pay it forward my friend

Good read, thanks for taking the time to post it.

Pay it forward, I love that concept. Think how much better the world would be if we all paid it forward every now and again.

Well, some good points there. I am fully committed to EA trading and as you mention about learning, I understand what my EA is doing because I designed it.

A point if I may add, is it's a shame that there are so many scam artists selling EA's that just don't do as the seller leads people to believe they do. Or that they leave out quite a bit of information on the risk involved when giving the sales pitch to a newbie. That is why your post is mostly relevant to me. If these 100 dollar EA's did as promised, no one would need to understand the forex as the EA would work anyway. Life isn't like that though, and we usually find out the hard way.

One last thing, those 100 dollar EA's are really sold for less than 25 dollars after you take into account the AFFILIATE commissions paid out.

PS: For all those greedy souls out there, lets play a new card game I invented with real money, and don't worry, I'll explain the rules as we go along! http://www.forexfactory.com/images/icons/icon12.gif

If we all did that then society would eventually outgrow the need for the U.S. economic war machine. Who needs 'em anywhere???

great read sleep1Iopen thanks

I am not (yet) a forex trader and has never really ventured into any form of trading. For the past couple of days, I have been researching so much about forex trading that I think I am already overwhelmed by too much information. YOur post is really helpful for me since i really, really want to know how do traders start off. I went through several forums and so far your post (although it has been posted a year ago) is the most concise yet simple to understand that i found. thanks a lot. I hope that this will work out for me.