How A Proper Forex System Will Keep You From Losing Money

By Author: Samantha Dale
Total Articles: 610
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The Problem:

Forex is designed for the little guy to fail, and unfortunately you are the little guy! What they don't tell you about Forex trading will kill you. They never tell you that the majority of retail traders lose all their money, they never tell you that trading are a zero-sum game, and they never tell you that you will never beat the big investment banks. This obviously sounds very negative, but it's not. It is just the reality of Forex trading! Most of you will fail and it is not for all the reasons mentioned above, but it's because you do not have a Forex system that keeps you from making bad decisions.

You probably have had some temporary success where you were making winning trades, but it didn't last! That kind of discretionary trading is like rolling the dice. You will eventually fail because you do not have a Forex system that works.

The folly of new traders:

The folly of all new traders is not knowing when to put their money in and went to take it out. Amateur traders basically trade with the wind. Meaning that they make on the fly decisions, these are the kind of decisions that ...
... are based on emotions and greed. All money made in the market is made off of someone else's greed and emotions -- basically it is fear and greed that fuel the market. Unfortunately, those trading without a Forex system make all of their trades based on fear and greed, and never have a clear direction. Without the direction of a quality Forex system you are destined to fail. Next to money management having a good Forex system is the next most important thing because it will keep you from making those in-trade decisions based off of fear and greed. A system will keep you from making vital decisions while you are in a trade like where to put your stops and whether you should add to your position. It will give you direction and simplify your trades.

The foolishness of thinking that you can beat the big investment banks:

Many new traders trade in a manner that doesn't take into account what the large investment banks are doing, and in general new traders do not know how to think about trading, they do not have a meta strategy. The Smart traders, the winners, they always take into account what the big banks are doing. It is quite foolish for a new trader to think that they can outsmart the Ivy League educated system traders that the big investment banks hire. If the big billion-dollar banks use a Forex system you should too. The big banks never make in-trade decisions; you know the kind of trades that you often make where you jump in and out of positions, where you make on the fly decisions, where you make discretionary trades. The big investment banks leave nothing up to chance -- what we mean by nothing up to chance is that before they enter a trade they know exactly what their stop loss and profit targets are. Can you say the same about your trading method? A quality Forex system will teach you how to develop a style of trading that will eliminate these in-trade decisions that cause you to lose money.

Stop losing at Forex trading and learn a Forex system that will allow you to make more money by making better pre-trade decisions.

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