Powerful laws to win with the strategy Long Term.

Powerful laws to win with the strategy: Long Term. Forex strategy

Rediscovering the basics

If you're a trader with significant experience, you've probably experienced what I am to tell you, if you're a beginner, sometime in your life of trader you will happen: the desire to improve every day our performance as a trader and our consistent profits in the Forex market, leads us to investigate and test new techniques, special strategies, combinations of graphics and more complicated indicators; leading in some cases to get lost within a sea of technicalities such that, at the end, we don't even remember how it managed to win, sometimes even more, with 2 or 3 basic concepts that we driving when we started.

Many of us have gone through this situation more than once. Some have decided that the trading was not for them, others, perhaps like you, that they were losing the North and the passion they had when they started and therefore decided to return to the basics, where everything was easier and maybe even win more.

Today I would like to remind you of those basic, I want to remind you the easiest way to make money in trading, the method that every beginner should be applied when he began his career in the Forex market: our "old friend", the technique Long Term.

Who has just begun?

All have been there, none of us (race traders) "was born learned", as my grandmother used to say. In the same way, all face the fears and doubts of Beginner:

"I don't understand anything about finances! I'm not made for this!"

"It is a risky activity! “There are that have nerves of steel to make trading!"

"I'd like, but I don't have the time to devote to trading!"

"I know that it is something that I am passionate about; that my family and friends tell me I cannot devote to Forex, because it would lose everything as in a lottery!"

Am I wrong or before it went any of these ideas through your mind. If you're a beginner may still have it. Don't worry, if you're willing to learn enough to dedicate yourself professionally to the trading, have good money (Money Management) management and control your emotions to an extent, can calmly make trading and earn more money than you will lose.

Let me tell you that this is the key; there is no crystal ball that will tell you exactly what to do to win always. On the other hand, often lose money in this famous market Forex, because no technology is foolproof. The secret is to make more money than you lose.

The good news is that today you will know the basic rules that you must follow to use the technique Long Term with a 70% success or long term. 

First law: Dedicated only 5 minutes a day

If you're a beginner, it is likely to have a primary occupation which you occupied all day. Possibly you have decided to invest some of your savings in the trading, seeing the "depressing" bank interest rates.

This technique requires only a few minutes a day to review the daily graphs (1-d) or four hours (4 H), finally, graphics of large periods of time. You don't have to spend all day behind the movement of an action or a bonus. You simply take a look when you return from work, it can be, and make your decisions based on the movement of the day.

If you think about it, this technique is ideal for a beginner, you commit not few mistakes all day in front of a computer, you're thinking if you should buy or sell.

Second law: It defines the trend

First thing you should do a trader who chooses to apply Long Term technique in the Forex market is to observe the movement of prices on the market, to set the trend in which price moves with the greatest possible safety.

How do I do it? If I suspect that it is a bullish trend, stroke a line that touches the minimum that has touched the price during the rise of the price. This line should point upwards; in this case we are in the presence of an uptrend.

Conversely, a tendency to lower, or bass, I suspect that the price falls and the line would be draw playing the maximum prices that has "drawn" the price while I was down. If the line points straight down, we have found a downward trend.

One way of helping us understand the direction of a trend, is with the use of a moving average of 21 periods (21 EMA). If the sails are above the moving average is an uptrend. If they are below, it is then a downtrend.

This graph has been mapped an ascending line touching the minimum requirements (points indicated) that price played in its upward movement. This line represents the tendency, in this case, bullish.

Third law: He expects a setback

"Everything that comes up, need to get off". "Any trend must breathe." We could define as well recoil, let me explain better: If you see the graphics of any financial instrument, you will notice that the price never moves in a straight line, on the other hand, draws a sort of waves, rise and lower setting minimum and maximum.

When price goes up, for example, in a bullish trend, "take breaks" to "breathe". I.e., at certain points, the price reverses slight and momentarily, in this case down, then return to your address, the main upward trend. This is a kick.

Here the problem is recognizing it is a kick or a reversal of trend, thing that could "lie us strategy".

In this case, it more advisable is requesting the help of the good Fibonacci. This indicator is optimum to establish the progression of a trend, indicating us if the recoil of the price in a trend bullish or bearish exceeds certain percentages; in that case, we could be in the presence of an investment.

The graph, which represents an upward trend, has identified the moments in which the price has moved in reverse to the main trend direction. These corrections of the price are called kicks, and are normal in the movement of the price of any instrument financial.

Fourth law: It identifies the signal and enters

Everything is ready. If you've identified the trend and saw that the reverse occurred, now only you can expect the start signal to enter with your position.

Now that price was a setback, the trend should return to your main course. You should take advantage of this new movement of the price. But when?, how to identify if the price will continue its trend?

Here come into play various theories, I'll only give you one of the safest; one that it has brought us Forex totaled the most positions with profit in the Forex market. You cannot always cause this signal, but for us, when this candle is draws it is as when in the 100-meter starting firing is heard.

I'm talking about famous call (drawn in a candlestick chart) sailing: PIN BAR or Hammer (hammer, because of its shape).

In an uptrend, the PIN BAR will be drawn with the body (the head) to top and the nose (the longest line) down. It will obviously be contrary in a downtrend.

This is your start signal to place your orders on the Forex market.

In a candlestick chart, are "drawn" different types of candles, depending on the price of entry and closing, as well as the highest and the lowest. In this case a candle Pin Bar of a bullish trend is highlighted. He is characterized by a formation similar to a hammer, this is also known as "hammer". In the Pin Bar, the "body" is located in one end of sailing, having this "body" as no more than 1/3 the size of the entire sail. It usually indicates the end of the "kick" and the continuation of the primary trend.

Fifth law: It protects your orders

A mistake many beginners make is to believe that everything is already done. Nothing further from the truth. If we do not place backorders position output could easily lose a very good entry or even turn it into a huge loss. Therefore, that is of vital importance to protect entries with a STOP LOSS and TAKE PROFIT.

If I open a LONG position, i.e., buy; immediately after purchasing I place STOP LOSS below the BAR PIN which it was drawn.

Then I fixed my TAKE PROFIT at the same relative distance, above my entry. For example, if my STOP LOSS 100 pips put it below the price of entry, TAKE PROFIT will place it 100 pips above the entry price.

However, it is possible to place not only TAKE PROFIT, but it could be two or more, thus increasing our risk/benefit (Risk Reward) to 1:2 or 1:3.

This benefit will further increase when the price has reached the first TAKE PROFIT, because at that time I can level my STOP LOSS up to the price of entry (ENTRY). Now my operation will be zero risk.

This graph indicates how ideally should be provided after entry into a position pending orders, then that has been created a Pin Bar. The blue dotted line indicates the entrance, the Red the position of Stop Loss and Take Profit area green.

Conclusions

Possibly this is not one so picturesque strategy for traders who love the adrenaline in the Forex market, but it is, without a doubt, a winning strategy, which has shown an average of 70% of earnings.

Another advantage that is worth considering is the fact of working with graphics daily or 4 hours, finally, graphics with Time Frame so long, makes the market, news, rumors not influencing prices, producing wrong signals.

If you are a novice trader or if you want to go back to basics and enjoy peace of mind while you make trading and earn money, I advise you to try this technique. You can devote part of your capital to this strategy, if you want to try other routes, but not discard, and above all, remember to respect the "powerful laws of the Long Term".

REFERENCE: http://profesionforex.com/mercado-forex-5-santas-leyes-long-term/

How to draw support and resistance

How to draw support and resistance

Both the resistance and the brackets are two of the most basic concepts in the technical analysis of financial markets. And when we talk about basic concepts we mean that they are very simple to understand and they are one of the pillars on which are founded the technical analysis. First that all are going to define its support and that it is a resistance.

Resistance is defined as a level or price above the current price at which sales force stop and finally exceed the strength of purchase with which puts an end to the bullish momentum. This causes that the price starts to fall and even reverse the upward trend. In a graph like the one shown in the following figure as previous highs reached by the price before falling resistances can be identified. In an uptrend, as ever higher maximum resistances can be displayed.

The concept of support on the other hand is the opposite of resistance. Defines support as a level or price below the current price, in which the purchase force even and finally exceed the sales force, whereupon the bearish momentum looks stopped what will cause that the price goes up and even reverse the downward trend. Usually in a graph stands reached minimum can be identified until the price begins to rise. In a downtrend, supports increasingly lower minimum can be identified.

The following image shows several real-world examples of resistance and support.

RELATIVE STRENGTH OF THE SUPPORT AND RESISTANCE

Some experts and analysts use a classification of supports and resistances and divided them into strong, middle and weak. However there is some controversy regarding the validity of this classification since it tends to be rather subjective. However, there are some criteria that most analysts agree to determine the strength of a resistance or support level. These criteria are as follows:

A resistance or support is considered strong depending on how many times has been tested by the price without having been crossed permanently. I.e. more times has been touched a level of resistance or support by price keeping as such, can be considered that that level is stronger than one that has resisted less time to have been tested for the price.

A resistance or support level is strengthened as quotes go away from it (it) after having it tested. For example, if the price moves by 10% with respect to a resistance or support, this level is deemed stronger than other which price turned away only about 5%.

Between greater times that has existed a resistance or support, stronger. For example, a resistance that has been in force for 2 years is considered stronger than a resistance that has only a few days of existence.

THE TREND AND THE RELATIONSHIP WITH THOSE SUPPORTS AND RESISTANCES

When analyzing the trends in price charts, you can see that they are formed by a series of valleys and ridges that are produced by the movements of the prices. It is so in an uptrend there is a series of valleys and ridges successive increasingly higher, i.e., a succession of resistances and supports increasingly older.

When the market is in an uptrend, the levels of resistance represent breaks or rest areas in the path upward, which stop the action of the price temporarily, unable to do it permanently. An upward trend is to continue, is required the price exceeds the resistance level earlier, in such a way that reaches a new peak. Each time that the price tests a previous peak, the upward trend is in a critical period during which it could happen that the price does not exceed the previous resistance, which would indicate a sign of weakness in the prevailing trend. Likewise, it is necessary that the minimum are successively larger than the previous minimum. Where the price of the asset falls and reaches the front bracket, it is at a sign of weakness in the trend. 

Finally, if the price falls below the level of the front bracket, it is likely you are before a possible change of uptrend bassist.

Price Action Strategy. Forex

FOREX TRADING STRATEGY. Price Action Strategy

Forex strategy revolves around the principles of the analysis of the price action. Below explains the method of Forex in detail so that you can understand it and operate it successfully.

Keep it Simple

The key principle of the price action strategy is to keep things simple. We are against complicating the trading more than necessary. Much simpler is the method, the more effective it is.

Some strategies are full of indicators absolute chaos. This is not the way for trading.

The Price Action Strategy aims to keep the graphics as clean as possible. In fact, the only thing that put candle charts is a few lines of support/resistance. The method is based on the reading and the understanding of prices by the reading of candles and the use of support and resistance lines. 

This means that the method is very simple to use and relatively stress-free. Here's a picture showing my chart of the EUR/USD

1 hour.

This is one of the benefits of using the analysis of the action of the price.

Indicators needed for this Trading strategy

So there is this Forex strategy trading indicators to use. Yes, you heard right, there are indicators.

If you want to take action on the basis of what is happening with his pair of currencies at the moment, then, only you can be based on data at current prices so it should use the price action analysis.

Currency pairs Forex in that this strategy works

The Forex Trading strategy will work on any currency pair that is free floating and be negotiated regularly. This is because the method relies on the behavior of the price. This means that you can use this trading strategy to successfully negotiate any currency pair on its platform of operations.

Having said that, I prefer to concentrate on only a few currency pairs because it is very annoying to treat of keep a record of many pairs at the same time. I think that it should be a teacher who does so. So I concentrate mostly 2 currency pairs. I mostly business the pair EUR/USD and GBP/USD pair. I usually operate. 

These currency pairs, since they are the most predictable and its movement is smoother. You don't find jumps randomly unless there has been a news very unexpected, which is quite rare. Also prefer to operate in the session of London, which is when these pairs are most active.

This strategy works best on longer periods.

Once again, since this method is based on the action of the price can be negotiated in any time frame, I like 1 hour upwards. I mainly focus on plots of 1 hr., 4 HR and daily. These are always the more profitable, because the patterns are easier to detect and lead to more consistent earnings. 

Analysis of the price action types 

First of all, I use two forms of analysis of the action of the price:

Support/resistance lines.

Analysis of candles.

How to enter a transaction through my strategy Forex Trading?

Due to the recent economic uncertainty of the countries that have been in danger of losing its ratings of credit, etc., the money is not negotiating as you normally would, so now I only do trading of reversions. Miro reversion settings forts that are formed on the side top/bottom of my areas of support/resistance. Once formed a pattern that indicates that a change has been established and I find price activation, entered in the trade. I do several trades each week and so far I've had a rate of 85% gain.

The objectives and the stops of the strategy

Goals: My goal is approximately 30-50 pips per transaction.

Stop the: put my stop between 15-30 pips away from the entrance.

These objectives differ in different market conditions, so please check the minimum/maximum in the he joined the operation to have more up-to-date information.

How to adjust the strategy around the economic news

I use the Forex Factory calendar to keep track of economic data that will come out and that affect the pairs that I operate. If there is any news of high impact (red/orange), that it will be for the dollar American, the euro or the British pound, then remain out of the market in that currency. I will not go in a 30 minutes before the news or after the news operation.

As you can see the Forex strategy is simple and allows you to make pips in any market condition, with the majority of Forex currency pairs.

Areas of support and resistance

One of the most common mistakes and it bothers most new operators is that they completely ignore areas of support and resistance. Sufficient importance is not to support and resistance areas in web sites and books of Forex. Most of the people prefer to focus on support and resistance lazy. These are the lines that are they calculated using formulas such as points pivot or Fibonacci. While the areas of support and resistance lazy have some use, place their own areas of support and resistance, is a much better and more accurate.

Reference: https://g8fx.files.wordpress.com/2012/05/nick-2012-es.pdf

Strategy to capture pips on the opening of Forex

Strategy to capture pips on the opening of the markets of Forex

Probably the most noticed that the price moves a lot of pips at the opening of the main markets in the Forex (European, American session, etc.). Therefore, any trader take these movements and obtain some pips would like. The only problem is that during the opening of the markets, it is difficult to know in that direction will move the price, since the behavior in the first few minutes is quite chaotic.

For that reason, we present the following trading strategy that can help improve your chances of winning some pips whenever it opens an important market. An important aspect of this system is that it does not use technical indicators, is based solely on the price action.

As we will see below the rules are complex, but require attention and practice.

This strategy is similar to the following which was developed to operate for important news on the market:

Market news based trading system

System configuration

Ø  1 chart of candles with a time frame of 5 minutes or 1 minute.

Ø  Recommended currency pairs: EUR/USD, GBP/USD and GBP/JPY. The system was originally tested with these currency pairs, but can try to apply to another.

Ø  Important market openings: United States, Europe, United Kingdom and Japan.

Ø  Technical indicators: none.

System rules

At the beginning it is not necessary that the trader knows the direction of the market movement. To enter, we're going to enforce orders buy stop and sell stop running only if the price reaches them.

-First place a buy stop order around 5 pips above the maximum and a sell stop order around 5 pips below the minimum of the first candles that form after the opening of the market.

-The amount of candles which we will take into account depends on the time frame in which we are operating. In a 5-minute time frame we use 1-2 candles; in a 1 minute time frame we use 2-5 candles.

-For the stop sign of losses we have 2 possibilities:

Place a stop-loss at a distance of 20 pips of the point where the initial purchase order would be executed.

Place a stop-loss 2-3 pips above maximum (sales order), or under the minimum (purchase order) of the initial candles used to determine the price to open position.

In this case we use the stop-loss that is closest to the input level.

-For the profit taking is recommended to move stop loss 5 pips below (operation of purchase) or above (transaction) current price once the market has moved at least 6 pips in favor of the operation. But we can move the stop loss so close, we can use the shortest possible distance and began to follow the price with the stop loss once the price has moved this distance more 1 pip. But we can move the stop loss at all then you can use a fixed Take Profit of 5-10 pips.

-If there is one or more pending orders without running once after 5 minutes from the close of the initial candles (used to place orders buy stop and sell stop) formed after the opening of the market, it should cancel these orders and wait for the next opportunity.

Considerations

-This strategy probably works in some cases for the news, but if we want it to apply during these events have to be careful if we operate with a broker that it significantly increases the spreads. This significantly increases the chances of losses.

-System I have not tried so far it is not my favorite style of negotiation, why is recommended to evaluate it before with a demo account to see your current performance.

-The system was originally developed to operate in the pairs listed at the beginning. If you want to apply in another pair of currency or type of market trader should be a preliminary investigation before risking your money.

Reference: http://www.tecnicasdetrading.com/2017/02/estrategia-capturar-pips-apertura-mercados-forex.html

The risk can be default, earnings do not

The risk can be default, earnings do not

If there is an inviolable when it comes to trade the markets rule is always respect the stops. Before opening a new position we must know our level of accepted risk. This is the best way to ensure that our losses will be under control and we will not let us dominate by emotions when it comes to operate.

The truth is that trading is hard, and the proof of this is that the number of traders who fails is much greater that succeeds. However, traders who fail to do contrary to what many may think because their ideas about the market are wrong, but because they let their emotions become involved in the process. This failure is due to the fact that they close their positions very soon--even the winners - and let run their losses too. The key here is that the risk must be default. Logically the most appropriate time to consider the risk is before entering the market, when our mind is open and the decisions are not affected by what happens to the price.

On the other hand, if we have an open position we want to stay with it until it becomes a winner, which unfortunately happens always. We must always think of the worst possible scenario and place our stop-loss in a monetary or technical level that is consistent with our strategy of monetary management.

Once again we must emphasize the fact that the risk must be default before entering the market, and we must stick to the parameters that we have set for this purpose. Emotions should be abandoned to not allow that they dictate the point in which we place our stops.

Each operation, no matter how safe is your development is basically an educated guess. In the market, nothing is certain because there are many external factors that can affect the movement of prices in the markets, and the Forex does not escape this phenomenon. Sometimes the basics move the market without prior notice and cause changes in trend, in other factors intervene, how the actions of the major central banks or a change in the rates of interest for example. Faced with this reality, the traders must be prepared before the unexpected, for which there is no better tool than the stop orders that limit losses since they allow us to predetermine our risk.

Unlike the risk, earnings may not have anticipated. For example when moving currency pairs, the movement can be broad or the opposite short. It is here that the monetary management becomes essential. Some professional traders tend to operate based on the opening of several batches at a time instead of just one large. In this way ensures fast with the first batch gain while leaving the second run and move stop loss to the point of breakeven (price at which that lot does not produce profits or losses). This allows trader to operate with more peace of mind since it ensures a profit and saves you from the uncertainty of deciding if you should close or not a position that let it continue could provide higher returns.

Usually the Forexmarket moves in trends which can last days, weeks or even months. For this reason many strategies to operate in this market are based on trends since operate on ranges can be difficult and cause constant losses. Despite this, many traders specialize in operate on ranges since they also present opportunities.

If the market is in a range that lot that left open the trader probably finish without causing profits or losses since the price likely will activate stop loss. However, if a trend emerges that same lot will produce a profit.

When operating in the market, half of our trading plan must be constituted by the operation strategy and the other half by the monetary management. Even if we are losing operations, we need to understand them to learn from mistakes. No and well understood no strategy is safe and works 100% of the time. However if the ruling is in line with a strategy that has produced more successes than failures in the past, accept the loss and continue left single trader.

The key is to get our minds to focus on the general approach of our strategy and see each individual operation as something insignificant. Once we have mastered this skill, no matter if we operate with $1000 or $100000, always follow our rules.

The destructively impulsive trading

The destructively impulsive trading. Forex

More money has been lost operating impulsively by other causes. For example, it is common to hear beginner traders phrases such as: "the market has come down too, so it should start uploading". This kind of thinking is based more on impulsive thinking rather than on the use of reason, which should always prevail when it comes to operate in the market.

It never ceases to amaze discover how behave people highly prepared, disciplined and intelligent in places like Las Vegas for example. Men and women who never in his life would pay more than one dollar that the price negotiated by a product or service in their business suddenly lose $10 000 or more in just 10 minutes in games like roulette or blackjack. Noise, lights, excitement and crowds present at its around transform these people sober and intelligent players unconscious and irrational. The foreign exchange market, with its ever-changing prices, its constant flow of news, and the more liberal leverage in the world's financial markets tends to have a similar impact in novice operators.

Operated by impulse is the same as bet, so simple. You can provide momentary profits when you are on a winning streak, but a single important loss may result in that trader will lose not only their profit, but also all its capital and in less time than it can believe. As well as all history in Las Vegas ends in bankruptcy, the same happens with the impulsive trading. In the market, the logic makes us winners and momentum to kill us.

This maxim is not true since the trading logic is always more accurate than the impulsive trading. In fact, sometimes the opposite. Impulsive traders may have an impressive streak of winning operations, while traders who use logic-based operation schemes can have losing streaks. The cause of that reason will triumph on the impulse is that traders focused on logic know how limited their losses, while impulsive operators are almost always one or two operations remain in total bankruptcy.

Now let's see an example of how both types of traders operating in the market. The operator A is an impulsive trader. It 'feels' the price action and acts accordingly. Now imagine that the GBP/USD is moving upward and it reached a new high. At this point the operator to "feel" that the price has gone up too and open a sell position. And then it happens that the couple continues to rise, which convinces the trader that the market is overbought State and decide to increase your sell position.

What happens then is that the price stops but does not back up. Faced with this situation the impulsive operator is sure that the price is at its highest for which tripled his sales position, only to watch in horror as GBP/USD continues to rise and rise, which ends with a margin call on your account. A few hours later, the price actually reaches its maximum value and begins to drop rapidly, what cause the operator to become submerged in a sea of negative emotions - including the fury - while watching as the market moves in the direction he predicted without that you can do anything.

In this case, the trader was right about the market, but chose the high momentum and not logic.

On the other hand, the operator B employs both technical analysis and fundamental analysis to calibrate risk and estimate the time to enter. He also thinks that the GBP/USD is overbought, but instead of choosing a halt prematurely to enter the market, waiting patiently to which there is a clear technical signal like a red candle in an upper Bollinger band or a movement in the RSI below the level 70 before opening a position. In addition, the operator B uses the height of the movement as the logical point to place your stop-loss with which quantifies the risk.

This trader is sufficiently intelligent to use a size of position which does not risk more than 2% of your account and the operation fails. Even if you make a mistake as A operator, logical and methodical approach to operator B allows you to preserve your capital, by which may operate another day, while actions impulsive operator A led it to lose all of your account.

In the Forex market trends can last a long time, so dare to operate against the trend based on feelings about that is before the maximum or the minimum, can lead to disaster if the trader does not care. In fact, it is not necessary to hold a whole movement of trend reversal for good profit, if we can take advantage of a 70% - 80% of a movement, we can say that it was a very good operation.

While the impulsive trading may seem more exciting, the reality is that the trading based on logic - used by professionals - is what will make us money in the long run.

Forex traders are profitable

39.1% of the Forex traders are profitable

Why so many lose in Forex and what adjustments the losers traders have to do in order to be among the select group of traders who consistently earn Forex?

Well, until we deepen more in the theme, first we will analyze the claim that 39% of Forex traders are profitable. The information was provided by the Forexmagnates site through a report on the profitability and performance of Forex brokers. The most prominent figure was 39.1% of profitability for customers of a broker who had around 24,000 active accounts.

There are also other interesting snippets of information that are worth noting before going ahead.

There was a sharp drop in the number of accounts and levels of activity in 2011, while the percentages of profitable traders increased. This could suggest a couple of points of interest, firstly, traders may be improving collectively in their activities in the market or (and is not mutually exclusive) many beginner traders have simply abandoned the market, returned to work 5-9, leaving the field open more competent traders whose superior results have improved the statistics data. We have also seen a reduction in the number of Forex brokers, which has caused that only the fittest traders supported by brokers to better comply with regulations regulatory end up prospering, when before many traders operated with deficient brokers services that ended up cause them losses.

Forex brokers industry to the United States retail is showing clear signs of slowing down, and in fact these companies report that the number of trading accounts has been backsliding. The extreme regulatory climate has made it extremely difficult for U.S. brokers to attract new customers. However, many customers of these companies show a high level of benefits and are cost-effective in the long run.

It is fascinating to see how many can find this fact quite striking and contrary to some of the most common preconceptions about the Forex. To my and many others claim that only 10% of traders are profitable is nonsense. Although most traders end up losing in the market, there is a lot who operate responsibly and with a sensible and well thought out trading plan, and therefore profit more or less regularly.

A question often posed by this type of statistics of success is "Are the figures by a small percentage of winning traders distorted being?” However, overall percentages, averages, and the distribution of the random data do not work that way, a basic knowledge every trader should have. If around 40% of the operations are profitable then the number of the percentage of traders who have a positive return should be fairly close to that number.

In the first paragraph we raised the question of why are so many losing traders in the Forex market? Armed with this new information one might wonder whether that assumption should not be examined in more detail. If we listen to the data, about one third of United States Forex trading accounts is profitable, or at least was in 2011. Certainly these statistics indicate most traders lose money in Forex, although not 90% catastrophic stating above. In these data, the distinction between full-time and part-time traders is not although we could dare to say that operators presenting best results are those who dedicate more time to this activity, as opposed to traders who enter the market from time to time to bet.

This assumption seems logical if we think that to be trader in time full (at least for a period), the person must have profits, i.e. which has to be profitable over time, otherwise could not engage in this activity 100%. Probably traders today are educated more than before and in addition, some of these people may be traders who started his career years ago and persevered despite initial losses.

Turning to the question posed in the initial paragraph; "Why so many lose in Forex and what adjustments the losers traders have to do in order to be among the select group of traders who win consistently in the Forexs?" Then we leave them with the six main reasons and please feel free to join this blog with your own suggestions or additions. Now we will not investigate the reasons or to provide solutions, is a simple and more complex list, the answers are there, the solution is obvious.

But first, let's recapitulate: If about forty percent of traders succeed in the Forex market, this means that this objective can be more within reach than many have foreseen. This is an important stimulus for novice traders.

The six main reasons why traders fail

1.    Low initial capital

2.    The lack of risk management

3.    Greed

4.    Indecision - doubt plan

5.    Try to choose maximum or minimum

6.    You refusing to accept losses