Have you ever thought about how to be successful in forex trading? Do people who are called masters, heaters, pros, and the like, have a hidden key to successful forex trading? But if it’s like that, can there be a lot of trading theories circulating? Instead of being confused alone, you should understand one of the keys to successful forex trading that professional traders always have, namely: the trading system.
In the world of trading, there are many models and varieties of trading systems that are presented. Knowledge is also spread freely and easily accessible on online forums, telegram community groups, internet sites, to YouTube videos. Not infrequently, this trading system is peppered with bombastic words such as “The Key to the Best Forex Trading Success”, “Certainly Profit Trading”, “Risk-Free Trading”, and others.
Experienced traders know that there is always a risk to an opened position, whereas a trader who simply opens and closes a position does not know what they are risking. Even professionals who now have the key to successful forex trading were once beginners. Because of that, you also have the potential to be a “master” in the future as long as your know-how.
A Proven Trading System Is The Key To Successful Forex Trading
What is meant by a trading system is a series of forex trading procedures starting from time, pairs, transaction lots, when to buy/sell, when to close a position, as well as steps to take if loss/profit.
If you think about it, forex trading is an exciting activity. The forex market is a fixed market, in the sense that the object offered does not change, namely the currency of a country. What changes is the trend in the market, so the forex trading system must always develop? Even though you currently fail, there could be a key to successful forex trading that you found through various experiments.
One of the professional traders, Kim Krompass, was forced to move on from the Carry Trade method he used because market conditions were no longer friendly. Likewise, George Soros, the author of Alchemy of Finance, is constantly learning to adapt to market changes. By “Reading Market Minds”, your trading system will certainly be tested even more.
Key Characteristics of Good Forex Trading
The current trading system provides traders with many choices in making decisions. When finding a key to successful forex trading in a promising system, make it a habit to be critical and ask the following questions:
- How effective is the trading system?
- How much profit can you make from it?
- What is the calculation of the Risk / Reward Ratio like?
You can find the answer by doing a test first on a demo account provided by the broker. The effectiveness of a trading system is not something that can be concluded in an instant, so you have to be patient and record the results. What is clear, the key to good forex trading is not necessary to make big profits but to generate profits that are greater than losses.
What does it mean?
Take the parable, you are following a trading system that suggests that at this price, buy, then at that price, sell. After making 10 transactions, 7 predictions are correct, 3 predictions are wrong. When calculated, you profit as much as 70 pips (per position profit of 10 pips), but the loss is actually 90 pips (per position loss of 30 pips).
That means, your Winning Trade is higher because it reaches 70%, but the Risk / Reward is 3: 1 instead. So, your account still suffers a loss even though the winning percentage is more. Therefore, the calculation of the Risk / Reward Ratio is more important than the Winning Trade.
The Key to Successful Forex Trading is In Yourself
Actually, in navigating the world of forex trading, the main focus is not just about gaining Profits and Losses. No matter how good the trading system you have, it will be useless if your psychological condition is not maintained. Emotional feelings, impatience, and easy give-up are the main enemies in forex trading.
No matter how sophisticated and good a forex trading system is, success does not come solely from there, but also from your mentality to achieve success. Even though the purpose of forex trading is to make a profit, its application is not only a matter of money but also a matter of psychology and mentality.
How, are you ready to have the key to successful forex trading with a move combining tested systems and emotional maturity? If you find the right recipe, it is not impossible, even with simple indicators or naked trading, you can achieve consistent profit in the forex world.