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Tag Archives: system

What Is The Best Forex Trading System

Good question.

First of all you must define the word system. Does system mean an automated trading program? Or does system mean a manual method that produces consistently high results?

I am not a big fan of automated trading programs, trading software, expert advisors, or whatever else you want to call them. They are very good at emptying your trading account, and the brokers love them, as they put a lot of money into their pockets.

Having said that, a good proportion of Forex trading is done by automated trading robots, but the banks that use them spend millions of pounds developing them, and they are constructed by the best trading brains around, and use complicated algorithms that trade by the millisecond. They work very well but you are not going to see those automated trading programs selling on the internet for a few 100 dollars im afraid.

So what are your options if you are looking for the best Forex trading strategies. The only real option that works consistently well for the retail trader is a manual trading system. I use a manual trading system. I like to call it a method rather than a system. I think the word system sounds a bit like trying to beat the house at roulette, which is not what i do. I do the exact opposite actually. I don’t try and beat the house, as you will never beat the house, the house always wins. What i do is trade with the house. The house makes money, i make money.

So how do you devise a trading method that will produce consistently high results? Well first off you need to know what you are up against. When you trade Forex you are trading against other retail traders, banks, hedge funds, brokers, market makers etc. Now statistically 95% of retail traders lose money trading, so you need to be in the 5% of traders that make money. To be in the 5% you need to know exactly how the markets work. When you have that knowledge you can work on your trading method.

A lot of traders say that to be successful you have to have patience and discipline. I will agree with that. But think of it like this. Trading Forex is like crossing the road. When you were little you did not know how to cross safely, you had to be taught. When you had learned how to cross the road you could cross even the busiest road safely, because you knew when to cross and when to wait. You don’t have to practice that much patience and discipline when you cross the road, you just wait until its safe to cross. Trading is very similar. When you have learned how to trade correctly you just have to wait until its safe to trade. Patience and discipline is a lot easier to manage if you are educated. Why would you want to enter a trade if you run the risk of getting hit by a 30 ton truck? You can see how important education is in any walk of life, and Forex trading is just the same.

When you have the education and you know how the Forex markets work, you no longer have to look for the best Forex trading system, as you already have it. The best Forex trading system is knowledge, and always will be.

If you want to educate yourself and learn how to trade like a professional Forex trader, please consider my Forex training and mentoring program here.

Forex Trading Systems

To be successful in the Forex business you have to have a system. Well that is what the majority of traders say. I don’t like the word system. System makes me think of automated trading systems, and as far as i am concerned they are a no no. All as automated trading systems do is blow out your account, so please don’t waste your money on them. While i am not a big fan of the word system i do believe that every trader needs a trading method.

A trading method as i see it, is a set of rules or conditions that must be met in order for you to enter or exit a trade. Yes i did say enter or exit a trade. A common mistake that a lot of traders make is they are always looking for a set up to enter a trade, but have no idea where to exit a trade. Exiting a trade is just as important as entering in my opinion. What is the point in waiting for a great set up and taking 10 pips profit when you could have taken 50. So exits are just as important as entries in my book.

So how do you devise a Forex trading method that you are happy with. Well the first thing you need to do is to find a Forex trading strategy that works consistently well. Only when you have found a trading strategy that works consistently in all market conditions will you have the confidence to develop a trading method around it.

Following a strict trading method is one of the hardest things you have to do in Forex trading. Setting entries, exits, price targets, and stop losses is a major part of becoming a successful Forex trader.