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Never Trade Forex Without A Tested Strategy Besides money management, having a solid Forex Strategy is one of the most important factors of successful trading. Many people come to Forex trading looking for easy money and an adrenalin rush. Unfortunately, these quick money seekers are fooled by quick success that leads to a form of cockiness. If they are truly unfortunate, their early forays into the market are successful, so they in turn start trading larger amounts of money, and then BAM the market takes them for everything they've got. They are left wondering: What happened? This kind of misfortune often hits newcomers who attempt to day trade without a sound strategy, and it especially wounds those lost souls who try to scalp the market without any real idea of what they are doing. Sadly, trading is a zero sum game: Someone has to lose money in order for someone else to make money, and unfortunately it is new traders like you who are the losers. This article will explain why you need a sound Forex Strategy to survive the zero sum game of Forex trading.

Never Trade Forex Without A Tested Strategy (Courtesy of )

Never Trade Forex Without A Tested Strategy

What is your Forex Strategy? Are you simply guessing and making decisions on the fly OR do you have a system that tells you when to make trades? Discretionary trading is not fit for new Forex traders because you do not possess the experience or knowledge to make trading decisions on the fly. Even experienced Forex traders avoid discretionary trading because they know how difficult it is to make sound decisions in the heat of the battles. The big investment banks that provide most of the liquidity in the Forex market, trade using automated computer tested trading strategies, yet new traders think they can trade without a Forex Strategy! Never Trade Forex Without A Tested Strategy (Courtesy of )

Never Trade Forex Without A Tested Strategy

On the fly trading results to a lot of emotional decisions, which often lose money. Tactics such as placing stop orders, closing out orders and adding on to a position shouldn't be done while you're in a trade -- These kinds of decisions should be made well before you even initiate a trade. What do you do when a trade starts to go against you? Some inexperienced traders have no idea what to do; all their answers and on the fly decisions are based on either fear or greed. Yes! Fear or greed: They either decide to turn their short-term trades into a position trade hoping to make more cash (greed) or they prematurely close trades out of fear. All bad trading decisions are based on fear or greed, and without a sound Forex Strategy you will eventually lose all your money. Never Trade Forex Without A Tested Strategy (Courtesy of )

Never Trade Forex Without A Tested Strategy

The right way to trade Forex: The right way to trade Forex is to know beforehand -- where you will place your stop loss, where you will take your profits, how much money you will risk, and why you are making each trade. Rookies like the excitement of making these vital choices on the fly, and they eventually go bust. The truth is that most people lose money trading Forex, but you don't have to be one of the losers. Invest in some Forex trading education, and learn how to form a sound Forex Strategy, so that you can avoid many of the mistakes that new Forex traders make. Never Trade Forex Without A Tested Strategy (Courtesy of )

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