Forex trading software is in no short supply these days. A simple Google search for “Forex trading software” or “Forex trading robots” will turn up well over a million search results. The prevalence of these relatively new market analysis and trade-execution programs poses a very relevant question: Which is more effective at analyzing and trading the markets, the human mind or computer programs?
If you are currently on a losing streak in the markets, today’s Forex trading lesson is for you. All of us experience losing trades, it’s just part of being a trader, but if you are finding that you’re losing more money than your making and you don’t know how to stop it, you probably have some bigger issues that you need to face and fix before you can stop the bleeding. I am going to give you a two-part program in today’s article that will hopefully provide you with the insight you need to stop losing more money than you are making in the markets.
Over-trading is perhaps the most prevalent trading mistake that Forex traders make. This article will fully explore over-trading and provide some solid tips to help you overcome this extremely destructive emotional trading problem.
This article is going to challenge some of your beliefs about trading, especially the beliefs you hold about how often you should trade and the consequences that your trading frequency can have on your forex trading account. Hopefully after reading it you will gain some powerful insight that will help you stop over-trading or prevent you from turning into an over-trader like the guy in this picture on the right.
The Forex market has its own language. This language takes the form of price movement. In order to understand and “speak” the language of the market you must learn how to read the price action that occurs on a clean, indicator-free, price chart.
A Case Study of Random Entry & Risk Reward
Over the last two weeks I have conducted a trading experiment in order to prove a point to anyone out there who might be in doubt of the power of risk reward combined with price action trading strategies. This article will take you on a journey into my mind and will hopefully prove to you that if you simply implement proper risk reward and have a willingness to learn a high probability trading strategy like price action, you have all the ingredients to become a consistently profitable forex trader. This article will open your eyes, I suggest you read it, start to learn about the concepts discussed.
Price action trading is an art form
• The “music” of the markets – Just like painting a beautiful picture or writing a hair-raising song, if you want to succeed at Forex trading you must implement a refined sense of human discretion. Art allows for unbounded expression and freedom, similarly, chart reading has infinite boundaries since the markets are always in motion. There are many different ways to trade and invest in many different markets, but price action trading gives us a means to read the “music” of the price charts, no matter what market we choose to trade.