Forex Trading Systems: Do Forex Trading Systems Really Work?
First and foremost in the minds of all new Forex traders is the idea that they must find the "perfect" Forex trading system in order to be successful. In this article we'll look at why this is simply not true, and explore why just about any Forex trading system will make money in the long run.
The path followed by new Forex traders is both well-marked and well-travelled. They are drawn to investigate Forex trading due to an ad they saw or an article they read. Their investigation ultimately leads them to one or more Forex forums, where they are exposed to literally hundreds of different trading systems, along with too much bad advice on why one system must be used over another.
This leads to confusion on the part of the new Forex trader and the beginning of a very bad habit of jumping from one trading system to another, usually within minutes of the original trading system registering its first losing trade.
It's a generally accepted principle of Forex trading that 90-95% of all new Forex traders lose all the money in their first trading account. An enormous part of that stems from the constant switching from one Forex trading system to another.
The fact is, most Forex trading systems will work profitably in the long run, but even the best trading systems available will incur a string of losing trades now and again.
A key to succeeding as a Forex trader is to learn how to shake off the financial and emotional damage caused by those losing trades and simply wait for the trading system to give out its next signal.
This is by far the hardest lesson to learn and abide by as a Forex trader. Seeing your trading method (one you might very well have paid $2,000 or more to obtain) rack up a string of losing trades is enough to give even seasoned traders sleepless nights.
But winning traders know they only need to have faith in their method and the patience to ride out the losing trades before the market will turn and they will once again start banking the results of their winning efforts.
The truth about every trading system is that there will be short periods where it will win the vast majority of trades, more short periods where it will lose the vast majority of trades, and a very long stretch where the system will perform right around the 50% level, meaning you will win and lose trades in more or less equal amounts.
To leave the majority behind, you must learn to capitalize on those times when your system is winning every trade in sight and then learn to do nothing when your system seems like it was designed to spot only losing trades. Obviously you'll never get any kind of advanced warning when the markets are about to shift either in your favor or against, but it normally only takes decent traders two or three trades to realize something is either very right or very wrong with their trading system. That is when you need to make the necessary adjustments in your trading style and money management.
So find a trading system that fits your trading style and emotions the best, and stick with that system through thick and thin. Over time, you'll begin to notice that your account is growing, rewarding you for your patience and determination.
