Currency trading success relies on a lot of different aspects but the one most new or inexperienced traders make is the one that we are going to discuss in this article.
You may be surprised that what we are going to discuss is a key element for currency trading success, so lets look at it.
The fact we are talking about is:
You must be mentally prepared to accept huge gains You may say this is easy, well most traders cant do it and heres why.
First lets look at the key to making profits
Run your profits and cut your loses
But this is the exact opposite of human nature
A trader when he has a profit wants to take it and the bigger it gets the more he wants to snatch it.
For currency trading success you MUST follow the longer term trends, most traders dont they simply bank profits quickly and think their clever for getting a profit.
The fact is the profits are never big enough to yield enough profit to cover their inevitable losses
Holding a trend is not easy!
Especially as short term volatility forces the position back causing you thousands in losses. Its here you must have the courage of your conviction to hold it.
If you have a sound method you must only exit when your system tells you
A good system will not trail stops to close but give the market room to move. Moving stops to quickly to lock in profit is simply a great way to get stopped out.
How to fail straightaway
Other traders when seeking currency trading success dont even bother to look for big profits.
They fall for the myth of day trading and short term swing systems.
This ensures that they only target small gains and there losses are just as big or bigger, their transaction costs mount up and they fail.
Short term trading has the odds stacked firmly against you and to win you need them in your favor as much as possible, so catch the big trends and hold them.
Have the courage to see the big picture
Accept short term volatility will hurt you, but thats on paper not in your pocket
Currency trading success is all about the dollars you put in your pocket.
The way to do that is be a long term trend follower and make as much as you can from the big trends, that make the big profits.
MORE FREE BETTER TRADING INFO
On all aspects of becoming a profitable trader including info about legendary trader W D Gann who made a $50 million fortune trading go to our website for an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html