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Wednesday, October 15, 2008

Profitable Forex Trading - Understand This Story and You Can Win at Forex

By Kelly Price

Enclosed you can read about an experiment that saw a group of traders with no previous trading experience become traders in 14 days and go onto to make in excess of $100 million dollars! Understand this experiment and use it as an inspiration for your forex trading strategy...

The experiment was conducted in the eighties by famous trader Richard Dennis.

He wanted to prove that anyone could learn and trade successfully and the experiment, (known as the turtle experiment) was born and had spectacular results.

The Challenge and the Result

Turn people of all ages, both sexes and of varying intelligence levels, into competent traders in 14 days.

After 14 days training, the group were given live accounts and soon piled up millions of dollars and became legends.

So Dennis achieved his aim - it was proven trading is a learned skill.

All you need is the right education and mindset but there is a paradox you will probably be thinking about now - if everyone can learn to trade, why do 95% of traders end up losers?

A closer look at the experiment will show what most traders do wrong and what this group did right.

The Obstacle to Success

The major obstacle to success is mindset, not method. Further explanation will make this clear.

The system taught was straightforward and very simple and was no more than a long term trend following system, based upon breakout methodology, combined with strict money management.

The real problem the traders faced was, applying the method through losing periods with discipline and execute their trading signals in line with the signals generated. Of course if you don't have the discipline to apply a method, you simply don't have one!

Most traders today believe that they can beat the market and losses will be short lived and if you believe many vendors or so called experts, you won't have any at all - but this is not the reality.

The reality is - most traders will have losing periods of many weeks, or even months and you must trade through these periods, as the markets take your money and make you look silly.

Easy? Not at all and most traders throw in the towel.

They fail to appreciate that win long term; you have to cope with losses short term.

Dennis taught his group to have confidence, so they could stay on track and many in interviews, they said how hard it was - but they had to do it and were rewarded.

Trading is not about ego and being right all the time, it's about making money.

How to Win

You may not be as successful as the above group but you can win and be a success and all you need to do is to get a simple robust forex trading system and learn to apply it with strict money management and discipline.

It sounds easy but its not, as your emotions will always try and get in the way of your success.

If however you know that you will face your emotions, you can take steps to be disciplined and stay on course. The above experiment proved anyone can win and it's not the market which beats the trader - but the trader that beats himself.

I personally found this story inspiring, it actually prompted me to trade over 20 years ago and I hope it inspires you too. So get the right forex education, work smart be discipline and you to can enjoy forex trading success.


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1 comment:

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