With lots of different ideas and attempts to claim the ownership of a forex “holy grail”, it is still rather questionable whether there is such a thing as a perfect forex trading system. All over the internet there are discussions about trading strategies – what really works and what doesn’t. In my experience, however, most proclaimed perfect systems today are scams and have absolutely no information on how to become a successful trader.
Let’s assume for a moment that you got a hold of a perfect forex trading system. Why would you bother wasting your time, convincing others and selling it, while you can simply trade and make money with it? Besides, it is the nature of survival not to share valuable information. Does a top-notch cook uncover the details of his best recipes? Do high tech companies share programming codes with each other? Does coca-cola publicly announce their secret formula?!
On every forex site you can find newbies asking the same question – what is the perfect forex trading system that will constantly create profits. The answer is simple – it doesn’t exit. If you don’t believe me, you can try wasting money on the scam systems that are widely promoted on the net with commercial expensive-looking sales pages and then waste some more money using them for a while. Once you are done, come back to read this article till the end!
Why the Holy Grail systems fail?
In most cases, forex trading systems are based on technical indicators, which are, simply put, series of data points, calculated by a mathematical formula and drawn on a chart.
Forex, unfortunately, isn’t a mathematical equation and therefore making decisions based only on technical analysis will never give accurate results. Market is full of surprises and sometimes, even when your MA crossover predicts one thing, the market will continue the other direction. In other words, the Holy Grail systems simply lack intuition and human touch!
And here is the paradox! Systems don’t work since they lack human touch, while traders fail to become successful, because they are too emotional! But while machines cannot become human, traders can try to learn to shut down the unnecessary emotions and become successful.
How to create a perfect forex trading system?
1. Follow your trading personality. What are your needs? What are your goals? Do the research, find the trading styles that fit your needs, figure out which indicators work for you etc.
2. Follow the price action – long signals when price shows signs of market going up and short signal when price shows signs of market going down.
3. Follow you trading system with upmost discipline. When trading forex, you have to understand that wrong steps to the left or to the right can result in fatality of your trading account! To avoid such violence, it is important not to fall under the spell of fear, greed, impatience, overtrading, overconfidence and all other things that lead to stupid decisions.
4. More over, keep it simple! This doesn’t have to be scientific discovery for Nobel price. Trade, write down your experience in the journal, research, experiment, except losses as necessity and trade some more. Like any other trader, you too have a chance of becoming professional forex trader.
