Actually – there not really secrets, because I am going to tell them to you but there are very few brokers or so called experts, who will. This is because, they either are selling so called secrets to make money or have no real idea, how and why currency pairs move and cannot see the reality of how to achieve success.
Sold Secrets – there not Secrets at All
Its a big industry selling secrets and its not exclusive to Forex trading. You will find secrets sold in all areas of life from how to attract women, to how to lose weight and all the secrets have one thing in common – they make it easy for the buyer to achieve their goal. The secret sellers, zero in on the fact that most people want short cuts or easy ways to do things in their lives. People want to believe there no effort route to success and in our quick fix society, there more popular than ever.
In Forex trading, you can buy secrets of success very cheaply, from the vast amount of people online who are tapping into the desire of many people to get rich quickly. All you need to do is pay a small one off fee and in return, you get an easy way to build wealth month after month, year after year. The idea that the Forex markets have some hidden easy, secret which can be exploited with no effort is - a total lie.
Of course if it were true, the whole world would be sitting back and taking advantage of this no effort route to riches and poverty wouldn't exist, no one would work and it would be utopia but this is obviously not the reality. Ignore the no effort route to riches and wealth because its not true and really if people used common sense they would understand this but as Voltaire said “common sense is not so common” and this quote is very true, in relation to currency traders.
The secret of success of in Forex actually lies in first of all looking at why the majority of people fail to make money on their trading accounts, because we know its always the same percentage. The first place to look in terms of why is - the view most people have of how and why Forex pairs move.
Unlearn Common Myths About Forex Trading
Humans conform to some hidden code which means they can be predicted with mathematical formulas – They can't, there human and by there very nature, humans cannot be reduced to a mathematical formula. This myth is one which allows traders to see what they want to see which is an up-sloping equity graph, with little downside. The idea of trading a market with science is ingrained in the Forex community from large banks to small traders.
Algo trading systems are very popular but they fail as they have always done (no matter how much effort has been put into them) The idea that systems can trade human behaviour and predict it is rubbish and not based on facts. The market is easy to trade in short time frames – no its not and that's why, short term traders and scalping systems lose.
Both the above ideas assume there is some order in the market but the markets have no natural order and cannot be traded with a formula which will make huge profits with low risk. The idea is a fantasy which traders want to believe in but there are no facts to back up this view at all.
The real reality is – simple trading systems make money and while they may have more losers than winners, this doesn't matter, if profits are run and losses are cut quickly. The ratio of winning traders as opposed to losers remains the same as always – 90% plus lose and only, a small handful of traders make money.
The fact this has always been so, shows the real key to success is how the trader trades his system. The pro traders simply have a different attitude of mind – its simply their thought process which makes them winners.
Independent Thought, Self Control and Discipline
In terms of making money trading currency markets the real secret of success lies within your own personality. Just like any other human, you will have parts of your personality and biological make up which can cause you to fail and these need to be kept under control. You need to manage and control, these negative thoughts and emotions and if you can, you will be able to make money trading currencies. If you are aware of these negative inputs, you can control them – then, you need to work on achieving self control and discipline which are the keys to trade success.
The emotions which need to be controlled are – greed, hope, fear, anger, frustration and revenge. We all have these emotions but let them rule your trading strategy and you are in big trouble. The pro trader, keeps these emotions under control and trades in a detached manner and has huge self control and discipline to control losses and ride profits. Sure they may use simple systems but they know they will be profitable if, the trader operating the system.
There is no secret or hidden formula, you can use to trade the markets more successfully than anyone else because currency pairs don't move to formula's the real key to success involves having a strategy which has an edge ( which can be very simple) and then just suppressing emotions which can cause you to run loses, cut profits, trade to much or seek revenge on the markets.
The real pro trader simply controls his emotions, has a system which he has learned and understand which has an edge and then applies it without emotion and with discipline which helps him achieve currency trading success, while most traders believe myths and cannot achieve mental self control and fail. The secret of achieving currency trading success lies within you and all you need to do is understand why and you can keep emotions under control and trading success can be yours. Sure it sounds simple but its the truth but most traders will never accept it but don't let that concern you to much as most traders will always lose money – Period.