Win at Forex With a Master Mind

As a professional Forex money manager I have the unique opportunity to converse with investors from all walks of life, and in the process I've noticed a common question amongst the majority of individuals. Time and time again I'm asked what the chances are of becoming a true success trading the currencies market.

If I answered this question by stating: "On average 80% of today's Forex traders will succeed" you might be justified in calling me crazy, however some 15 years ago one might be inclined to answer with such bold figures. Certainly it would not be uncommon for at least 50 to 60% of the chosen few Forex traders to achieve success in those days. Trading Forex was new and profits were there for the taking. Daily price movements were somewhat more predictable and the competition was not nearly as aggressive as it is today.

As time moved on from the late 80s, early to mid 90s and on up to our Present day the success rate dropped drastically as the Forex market progressively became saturated with day traders; this in turn made for a more unpredictable trading environment. The "white noise" we experience intra-day is in part the efforts of the masses, each trader grabbing at what they can to secure their daily profits. It's unfortunate to take note that less than 10% of the investors currently trading the Forex market come out on top.

Let's take a closer look at the real ratio of winners to losers. You see, it's important to understand that this isn't a luck of the draw situation. When you look at figures like 1-in-10 there is certainly much more than meets the eye beneath these numbers. Let's explore this thought further.

Take 10 traders asking the question "What are my chances at succeeding in Forex" and try to find out which of them has the mind of a champion. The answer is rather disappointing, as those who think big do not ask small questions like this. Thus you will not end up with 1 winner and 9 losers. It doesn't matter how many people you tested this theory on, be it 10 or 500+. But how can this be the case if the odds of success are 1-in-10? That is a very good question as within the answer lies one of the keys to your trading success regardless of which system, method or school of thought you subscribe to.

From those who are winning constantly we notice a pattern. Specifically the pattern of positive questions, they tend to stay away from a losing attitude by not asking self defeating questions such as: "Why do I keep losing trades, am I any good at all?" but unfortunately the vast majority of those who are not making steady growth have no option but confusion as they wonder why they aren't on the winning end of things; constantly asking: "Why do I keep losing in Forex?" and inevitably receiving rather discouraging and uninformative answers. You might find yourself saying "I just don't try hard enough" which doesn't help encourage you in any way nor does it point you in the right direction. It only leaves you looking down on yourself in guilt. Not a very winning attitude at all and it definitely won't help you take hold of your financial destiny. If you don't want to be left in the dark without a lamp then it's time to take control of your mind and give yourself the psychological edge you need and deserve.

Forex Trading - Proven Methods For Generating Consistent Profits

When I see so many people with powerful dreams and desires for their lives looking to the Forex market I really feel for them. I remember when I first started investigating Forex trading and started to get an understanding of what it can do, I could hardly sleep at night because of all the wheels that kept turning in my mind. I kept asking the people I knew who were already involved in Forex trading, "You mean I can now live anywhere in the world or travel as long as I have a laptop and wireless internet?" Yes! "You mean I can start with a very small amount of money and within a year be making more money than I could have after 5 years of real estate investing? Yes! The more I thought about it the more excited I got.

Once I got started learning to trade, however, I started to see that it just wasn't as easy as what the brokers and training salesmen tried to make it out to be. In fact, after visiting some of the forex forums out there and listening to all the negative discussion I began to wonder if anyone really made money in the trading world. I watched many people join various training programs, get discouraged and eventually give up. Fortunately I knew that success was possible and continued to work on my trading while studying every training program I could find. I started to meet people personally who were credible ordinary people who had gotten through the struggling period and actually multiplied their accounts just like the trading plan formulas show. Rather than put 100% faith in a particular program I gathered information from every source I could. During this time I was privileged to have a series of breakthroughs and insights some of which most traders never see. While others would follow a particular trading program like a religion then give it up and "convert" to another guru's system, I continued to take the best of all that I found and put it all together in the testing ground of my own experience.

After a couple of years I was still trading and finally started to see the results I was looking for. The potential results in Forex trading are so amazing and exciting that once you experience it there is nothing else that compares. The first thing I did was quit my previous business and move to Santa Fe to enjoy the sunny climate, artistic community, the beautiful Rocky Mountains and surrounding desert. Next year I may move to Aspen or to Fiji or Switzerland. Now I am only doing what is most fulfilling in my life. I can finally live by T Harv Eker's wealth statement, "I work because I choose to, not because I have to." There are many things I love being involved in and I don't do them for money because the money department is taken care of.

When some of my associates started asking me to show them how I trade the thought of being involved in forex trading training kind of defeated my purpose for trading. I really don't want another job and training is a job. Plus, I never really cared much for "public speaking" if you know what I mean. Well, after some coaxing I realized that with today's web conferencing technology I can show people exactly what I am doing while sitting in my adobe courtyard watching another incredible Santa Fe sunset. Or from the alpine European style lodge where I vacation in Aspen. Plus I do enjoy helping others succeed and that fits in well with my chosen mission in life. So, here we go!

Understand Your Currencies

In the forex markets, it is important to understand the nature of the currencies you are trading. It is worth knowing the characteristics of the currency pairs, since each of them exhibit distinct identities. There is a fact that most of the currencies might exhibit similar movement patterns, which can help a trader confirm price movements. Trader can look at two pairs of currencies that have almost similar or completely opposite price movement patterns to get better predictions. Let take an example of the close relation between the EUR/USD & USD/CHF.

The price movements of these two currency pairs are absolute mirror images. In short, they have an inverse relationship. If EUR/USD is rallying, then USD/CHF should have downward movement, and vice-versa.

How can traders take advantage of this? The most obvious fact is that one must not trade both the currencies at the same time. If one is long the EUR/USD, logically one should not be long the USD/CHF at the same time, since the USD/CHF would have a downward movement.

Neither is it wise to take opposing trades on these two pairs, because if the trade goes wrong, then the trader would incur losses in both the trades (although the trader also might have double profit if the trade goes right, but anyway, in forex trading, we focus on how to not get loss first).

Ideally, one should trade either of the two pairs. The best way to take advantage of this fact is to cross-check a trade by looking for confirmation factors on the other pair. If a trader is planning to take a long position in the EUR/USD, he can look for a similar short setup on the USD/CHF. If such an opposite setup is present in the USD/CHF, it only adds further credence to his long EUR/USD trade. It is just a check.

There are other currency pairs also which exhibit a close relation. This fact serves as a good rule of thumb to estimate the movement of the particular currency. Thus it is worth studying these relationships to gain a higher edge in the market. As you know, sometimes a basic knowledge can also serve as a turning point between failure and success.