What Does it Take to Have Forex Success?

By Jim Buhs

For anybody who is thinking about trading forex, it can be a bit of a daunting process. We all hear about the forex success stories from traders that went from zero to a million in just under a month. They make it sound like an easy process. Well, it' not. Forex takes some time to learn.

The tough part to overcome is that most people just trade forex the same way that everybody else. For every rich and famous trader in the world, there are about 5000 traders who lost everything in their account, due to poor trades and even poorer money management. The problem is that we never hear about all those traders. If we did, people would take this step a little bit more seriously.

This may seem obvious, but the key in having forex success is just doing what the successful traders do. Doing a general scan of the markets you'll see that the majority of the successful traders in the world have one thing in common: They understand the market. They can follow the price and predict to a certain degree where it will go up, where it will go down, and for how much. They are not using some hidden technique that is available only to them. Anybody just staring at a basic bar chart can see the same thing. Its only a matter of being able to see it from a different perspective than the majority.

Now, if you look at the unsuccessful traders, there is a general theme involved. Most of them are using some kind of trading system that is derived from a huge amount of indicators, especially lagging indicators. They look at these indicators as a shortcut to riches. Instead of sitting down and trying to listen to what the market is telling them, they'd much prefer to have a mathematical formula do all the work for them and point to buys and sells. You'll notice that some are successful for a little bit, but eventually all of them fade into oblivion. The reason is because is always evolving and changing. The biggest problem with indicators is that they don't evolve with the markets. It's the same formulas that were used 30 years ago but for a completely different market.

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