The Secret to Forex Trading Profits

By Joshua Geralds

Did you know that 5% of the world's forex traders have on their hands a secret? It is a secret of how to trade and make profits consistently. This is actually an open secret; in fact this "secret" has been tossed around so often that it is a wonder that not more traders have caught hold of it yet! Would you like to know what this secret is?

Have you heard of the term money management? I believe that you must have had heard of it some where. You would also have heard about the psychology of trading and of discipline. There you have it folks! This is the secret that I was talking about, this is what only 5% of the traders in the market practice. Subsequently only 5% of traders in the Forex market actually make money and are profitable. For years I have tried to educate young traders on the virtues of money management but it has never caught on.

Money management is boring and dull. There is just a slew of boring repetitions to do each and every trade. But this boring process is what brings in the pips each and every time! Would you be able to stand a little boring activity to make money? Well the answer depends on your psychology and discipline. Every trader is different and there is no right or wrong answer. Only your account will know the truth, will you have a fat account at the end of the day or would you be left with nothing at the end of the day. This is something you will have to decide and find out for yourself.

Another part of the secret is the psychology of the trader; we touched on that in our previous section and it is considered by many professional traders as the killer or maker of a successful trader. The reason for this is because of the sheer amount of traders who cannot accept losses in the market. When a loss is made, do you walk off and cry about it and get angry or would you shrug it off because you have planned for it after all and then go on and enter the next trader which comes along? It is those who choose the latter that succeed while the first option leads to failure.

Lastly all of the above is useless without discipline. If you are ill disciplined in your approach to wards trading you will realize that the world's best trading plan and psychology along with the most powerful money management rules are useless.

Build your discipline there are many ways to do so and here are some:

1. trading journal

2. physical activity

3. meditation

4. force of habit

A disciplined trader will ultimately out perform a trader with a haphazard attitude towards trading as most statistics show. Therefore build your discipline and you will soon be sailing towards the realms of wealth because you now have in your possession the secret to Forex trading profits.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only!