Consitent Profit in Forex-Learn to See the Present Moment
In order to successfully trade in Forex and make money we should learn to focus on current moment. It may sound counter-intuitive but we do not need to try to predict currency movement and forecast it.
It goes against everything we have leaned in our life. We used to collect as much information as possible, analyze it and make a decision. Based on that analysis we make plans and try to forecast the future events. We learned to avoid mistakes by analyzing the past experiences.
However the experience in Forex shows that such way is detrimental for your success in trading. By making a forecast we start hoping that our trade will bring us profit. Unfortunately such hope is our enemy in Forex. All we need to do is to answer the question where is price going right now and what position did we take? If price goes along our position we control our trade if it goes against we cut our losses. That’s it!
Fore most of us it is very hard. All our experience and education thought us that we need to be right. We worked so hard, collected so much information and made a decision. We can not be wrong. And we continue to hope that market sooner or later will confirm that we were right.
What’s even more we try taking revenge over the market by increasing our position or by entering into opposite position without proper planning. I think it’s a familiar situation for most Forex traders.
You don’t have to believe and hope! All you need to do is to see the current situation. If price goes against your position your stop loss order defines how far you are allowing it to go before liquidating it.
It is very important to understand that not all trades will be winning ones. What’s important to understand that over large number of trades average value of trade would be positive. In that case your trading system will be making money. You can even make money with only 20 winning trades out of 100 if the total is positive gain. However it is very hard psychologically to keep going in such situation.
To be able to trade with consistent profit we need to acknowledge our mistakes. Just take one trend indicator, see the direction of the movement and never go against the trend. If for example EUR/USD is growing then buy it if it’s falling then sell it. It’s that simple.
You don’t have to make up a forecast of the price movement. Just ask yourself: where is market moving right now? Then go along with it. Start planning your trades with writing: I see that price is going up (going down). Learn to see the price movement in current moment and it will not take long before you see consistent profit.
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