In this article I am going to give you some advice on trading currencies which comes from my 21 years of trading and teaching currencies. In this time, I have seen tens of thousands of traders trade and taught several thousand – so here is my currency trading advice based upon this trading experience.

The essential currency trading advice below is very personal but its my view, so here it I hope it helps your currency trading education and can help you make some bigger profits.

Don't Try and Beat the Market – Keep Your System Simple

Forget all the guru's telling you can beat the market and predict the future, if it were true they wouldn't have to sell their strategies to make a living, they would be to busy making money. When seeking trading success, the best advice is your own.

The first point is that currency trading is essentially simple and there is no way to beat the market. Many traders try all sorts of complex theories and indicators but they don't improve the odds of success at all.

You can actually make money from just chart formations and a few confirming indicators. I still use the same system and indicators, I did 20 years ago and it still makes money. Focus on making money and don't look for perfection its not possible.

Blend Fundamentals and Technicals Together and Learn How to Spot Fair Value

While a technical approach is the best way to trade, its always good to establish if the fundamental supply and demand picture supports the view and look at and question the news. All the best currency traders blend both disciplines and you can to. A report which is essential reading for all traders is the CFTC Net Traders Report which is issued each week by the CFTC. The reason this report is so good is because it can tell you if a market is under valued or over valued in relation to the long term supply and demand situation and while I don't have time to explain it in detail here, you can read about it in other articles on this site.

Money Management

Everyone thinks they can trade with discipline and keep losses small but this is before they start trading; when they do start trading they let their emotions get in the way and let losses run and this leads to disaster. It's a fact that even most of the best traders have let losses get out of control early in their career but once they have done this once, they never do it again.

You simply must take losses and keep them small, if it makes it easier - consider you are running a business and all businesses have overheads or losses but they try and keep the overhead under control or they know they will go bust and it's the same in currency trading.

Courage to Trade for Big Profits

While you need to have the discipline to cut losses, you also need to have the courage to hold big trends and not bank early. Its a fact that most traders bank to soon and never cover their losses. You must have the confidence and the courage to hold big trends and profits and this can be hard, when others are saying the trend might and you are seeing open equity dips in your open profit.

The Best Trades are the Most Uncomfortable

Trade in Isolation and Learn that the Best Trades are also the Most Uncomfortable. If you want to be a winning trader, you need to understand that a lot of the time, you will be trading to what everyone else does and as man is a pack animal by nature, its a very odd feeling but you will learn from experience that it's the most uncomfortable trades which often work out to be the best.

Patience

You don't actually need to trade a lot to make big profits and you can do it, with just a few trades a month. Don't try and force profits from the market, wait until the market gives them to you – its a fact that most people over trade.

Hard Work and Intelligence Count for Nothing

Forex trading success, doesn't rely on hard work or intelligence, your system can be simple and anyone can learn a simple system quickly but it really is your mindset which is the key to success. This is obvious from the fact that 95% of traders lose money and always will. When you trade in the market you need to operate in a world of total anarchy, where you must have the confidence, discipline and courage to survive and prosper.

Final Words ..

Can you succeed at Forex trading? The answer is anyone has the potential to learn a currency trading strategy which can win but do you have the confidence, discipline and courage to execute it correctly? If you can then you are on the road to trading success. I hope you found my essential currency trading advice useful.