Pursuing the Perfect Day Trading Forex System.
This article is originally referred from Blog XTrade.
Creating a better day trading Forex system is always possible, for many traders.
Much like business success, different personality traits are needed. The people who make it in the business world are not the ones having the best university degrees. But rather the ones that are bold in taking new risks. A good day trading Forex system is not that different to a new business challenge. The creator of that system has to be bold enough to break barriers and look beyond the obvious.
Many other traders fail to develop such systems because of lack of confidence. Even though they are educated, they are simply afraid to take unknown risks and handle the day trading pressure. Wise Forex CFD traders take day trading very seriously, but lightly at the same time.
They are capable of developing CFD trading systems of extremely high dependability. The whole purpose of having such a system is to feel safe and comfortable. This is their first concern. And because dependable day trading systems treat each trade as unique. They are the closest one can have to a perfect system. Generic systems on the other hand only scratch the surface of the markets. And they fail far too often, as market volatility fools them very easily into giving the wrong signal.
There is no unique way to figuring out the best Forex trading strategy. Many different concepts and methods of analysis may lead to identical trading signals.
This is because there is an underlying truth in the market charts. And this truth is hard to find just by looking at the charts through a simple, naive mindset.
Profitability of a Good Day Trading Forex System
Any good day trading Forex system typically focuses on very few currency pairs, and is not generically used on all pairs. A system expected to predict 20 different currency pairs, through the same methods of analysis, is bound to be a generic system.
And it will be defeated by the markets sooner or later. An efficient day trading system focused on a single currency pair can be very selective. And hence very profitable. Not because it will have many winning trades, but because many losing ones are cleverly avoided. That’s how the best Forex trading strategy can really be made possible.
It’s far more important to focus on avoiding losers, than on picking more and more new entry points. The profitability of such systems and strategies can be so big. That it is practically possible to start with a $5,000 CFD Forex account and make over $100,000 in just over a year.
Traders Need to Pursue Realistic Goals
Traders need to define their goals well. And doing so requires clarification of facts, as to what is and what isn’t realistic. Traders who learn Forex basics dream about making $100,000 in their first year. The money figure is not totally unrealistic, but their judgment on the markets and their skills, probably is.
While, for a slightly more experienced trader, one who has traded for 2 years or more. The goal of having a very profitable year, reaching $100,000 in profits may be realistic. What differentiates realistic goals from pipe dreams is the gravity of the trading system.
This alone reflects many key skills that the trader will have. Profitable Forex trading systems have huge complexity, which varies from day to day.
But if the trade is too hard to figure out, complexity can run in great depth. Poor trading systems on the other hand are generic, simple, and fail to handle the huge complexity of the markets themselves.
Original Source: Blog XTrade