Discover The Untold Forex Secrets Used By The World's Top Millionaires To Generate Massive Amounts of Passive Income To Feed Their Families For Decades! http://urlnews.net/forexsecrets In this article I separate fact from fiction and take an objective look at how to understand the proper approach to Forex trading in general, how to select an EA for trading Forex and how best to use your EA to capture maximum long-term gains. Far too many Forex traders approach the Forex market with the idea that Forex trading is about making money quickly. Forex is not a get rich quick solution. It is vital that you understand this concept well otherwise do yourself a favor and don't trade Forex at all. You must understand that you can accumulate a great deal of wealth by trading Forex but it will NOT happen over night. If you are looking to make an over night killing, you are better off buying a lottery ticket or taking your chances at the casino Take it from someone who has been around the Forex 'block' more times than he cares to remember: Use a logical and analytical approach in selecting your EA for Forex trading. The key feature I look for is consistency. Closely examining accurate back test results is one method to use in evaluating the consistency of an EA. The first thing to look for in the back test results is the percent accuracy of the test itself. Look for a minimum of 90 percent accuracy. Next, look at the number of wins and the average amount won. Look next at the number of losing trades and the average loss. When comparing back test results between EA's be sure you are comparing apples to apples. Compare lot sizes traded, percent accuracy and the results themselves. It would be nice if you could find an EA that never lost a trade. While I agree that such a 'holy grail' scenario is seductively attractive it simply is not realistic and you should beware of anyone promising such results. Forex trading is all about numbers. The numbers that matter most in selecting your EA are the number of winning trades times the average win versus the number of losing trades times the average loss. This ratio will help you gauge the consistency of your EA.
Trust me, if your average win were to equal your average loss then you can do extremely well in Forex if you win just 60% of your trades! Let's talk about two key money management dynamics that can make you or break you in Forex. The first is the concept of consistency. Being able to deal with changing market conditions is a far more important trait for an EA than some pie in the sky promise of winning every trade. Winning Small consecutive wins add up to a big bank account. Forex trading is never about making a huge amount of money in a short time. It takes time for a Forex trading account to grow. Let me repeat, if you are after big wins in a short period of time then stick with gambling in the casinos and leave the Forex market alone. The Forex trader's biggest enemy is greed. Don't try to go over the top. Trade a good system. Place small trades and be patient. If you have selected your EA well then it will pay off. I promise. Far too many Forex traders will purchase an EA, plug it in, and trade it for a few days. The first time it loses a trade they are back on Google looking for a new EA. This is a big mistake. In Forex, learning to control your greed is a prerequisite for achieving great wealth. Take controlled risks, never let your greed take over your decision making process. Every EA has good times and bad times. Be ready to treat the bad times just as you would the good times. If you have selected your EA well then the good times will out weigh the bad times and you will make progress. Does that mean that you will never have any bad times? No absolutely not. A losing trade will happen at some point in time. Maybe not tomorrow, next week, or next month, but eventually you will lose a Forex trade. Your job as a Forex trader is to treat that loss with the same respect that you treat the gainers. Your job as a Forex trader is to manage your money in such a way that when the inevitable loss comes you stay in the game and recuperate. Not to jump around and find another so-called solution. Remember the story of the tortoise and the hare: slow and steady wins the race! key to long-term success in Forex is to include correct money management into your Forex trading. The bottom line is to control your risk. Never trade more than you can afford to lose. key is to grow your Forex trading account little by little over time. Yes you will get losers but if the Forex trading system you are using is accurate enough those losers will be recovered. Again, this is where patience comes in by not jumping from one solution to the next. second, and even more powerful, key dynamic is 'profiting on your profits'. In other words, compounding.
It is amazing how an account can grow when you begin to profit on your profits and you are patient and disciplined. That is the secret to winning the Forex game. Small consecutive wins boosted by the profits on your profits concept. trading is all about numbers. No more no less. As long as your winners out weigh your losers you are on your way. Start small - grow big.trading is not about making money quickly; it is about intelligently growing your account over Finding a consistent EA is great but that's not enough. Your job is also to learn how to use the EA properly. It's not enough to just purchase the EA you have to be smarter than the others in using it.
I hope I can bring you closer to what Forex trading is all about. Forex trading can be very profitable so long as it is done correctly and not perceived as a get rich quick solution. If you: Apply good money management rules Avoid the get rich quick mentality Control your greed And be disciplined... Then you will be light years ahead of the competition. You belong to that special top 1% percent group. The group that looks at the 'hares' and understands how silly their approach to trading really is The name of the Forex trading game is to grow big but at the same time to be strictly disciplined. If you understand that the statistics are on your side then you won't let a losing trade deviate you from your objective of making it big time in this exciting venture. If you take to heart the concepts we have talked about here today then you will surely get your fair share of the Forex market - the largest and most liquid market on earth. Article Source:http://EzineArticles.com/?expert=David_R_Jaymes Discover The Untold Forex Secrets Used By The World's Top Millionaires To Generate Massive Amounts of Passive Income To Feed Their Families For Decades! http://urlnews.net/forexsecrets
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