In the FX Markets there is one statistic which never changes and that's the ratio of winners to losers – 95% of trades lose only 5% of traders win and this statistic has remained the same in FX markets, despite all the advances in technology we have seen over the years. Here we will look at some myths about technology and how helpful it is and how to win at Forex trading.

The Impact of Technology in the Last 50 Years

In the last 50 years the Forex markets have seen the internet bring instant prices, aster and better news and cheaper dealing costs to traders and the advances in computer technology means your desk top computer is far more powerful than mission control Houston which landed man on the moon but the with all this technological help, the number of winning traders has not increased.

The reason that technology has little impact on trading success is due to the following reasons.

Markets are Based on Emotions Not Science

FX Markets are traded by humans, there not creatures of logic, their creatures of emotion and this means you can never predict where prices may go next. There are plenty of systems, gurus and robots which all claim they can predict prices in advance but they can't and never will be able too. In conclusion, you cannot apply mathematics to a market which does not move in the same way every time! Humans don't conform to a set formula and never will.

FX Markets – Trade the Odds if You Want to Win

The FX market Doesn't move to certainties, it moves to the odds and this means that you need a simple strategy which has fewer elements to break than a complex one. You can win by trading high odds set ups but you don't need a complex system to do that.

Trading Anarchy and Winning

There is no order in the FX markets there anarchy, everyone is trying to make money and beat everyone else – there are no set rules and only a few survive.

When trading in an environment such as the above the human mind is the key to success. Unlike a computer it can think and that's a huge advantage. Contrary to popular belief, the best traders are not all computer boffins or people with masters degrees, there are many high school drop outs and people who have had no formal education but they make huge money and the reason they win is they know being clever and being complex in their trading strategies won't help them achieve success.

Key Traits of Winning Traders

The key to making money in FX markets is to use a simple system which is robust and flexible and trade with a disciplined mindset which allows you to cut losses and run profits. The best traders know, that trading success comes from within them and its the ability to keep their emotions out of their trading and understand the sentiment of the crowd which is the key to success.

Final Words

I have just been reading about a software program which is based on complex mathematics and can predict price moves with stunning accuracy in advance but just like all these programs and the traders who use them, they have no understanding of what is really needed to achieve Forex trading success.