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So many traders come into Forex trading thinking that there is some magical indicator or system that can easily and mechanically make them rich - quickly.
Well, I am sorry to say but there is no magic in Forex trading (at least not the kind you would imagine). This will probably sound like a broken record for those that are more experienced but nevertheless, it’s worth repeating.
There is no such thing as a perfect trade or a perfect indicator in Forex trading. The flawless trading system does not exist!
There are trading systems that are highly profitable, moderately profitable and not profitable, but there is no strategy that you can be 100% sure in. Every trading system has strong and weak points, but none has only one of them. Once you realize this basic truth you’ll begin to think about trading in the right way and, what’s even better, your results will probably start to improve at a rapid pace.
Trading is a process and a probabilities game. Therefore, the perfect trade or the perfect strategy is really not that important. This business is a marathon, not a sprint and to be successful in the long run you have to think about it in this way. Trying to make every trade profitable would be like sprinting all the time, while the successful trader knows that an individual trade is not what matters.
The point is, it’s not important whether you are right or I am right about one specific EURUSD trade, but rather, "Who has a profitable balance after 100 or 200 trades", "Who has the bigger profits in pips and in real money", "Whose system is riskier and who has a better win/loss ratio".
Once you start to focus on the process rather than on any individual trade your results will improve immediately.
Losing trades are part of the winning process, and the only thing that counts in the end is the final account balance. That 1 particular trade that went nasty a few months ago isn’t that important and frankly, will be completely forgotten when you have another 5 or 10 winning trades. The profitable trader has his focus fixated on the winning process and is looking at every trade as part of the bigger picture.
To be profitable in Forex trading you have to be able to take a calculated risk with the only aim to achieve net profitable results. You also have to be prepared to consciously take trades that will be losers in a bigger strategic move that will be profitable at the end. As contradictory as this may sound, it’s a valid approach as part of a winning strategy, and in fact, a lot of successful traders use such methods (e.g. hedging).
