What Does Forex System Trading Mean?

A method of trading forex that is based on a series of analyses to determine whether to buy or sell a currency pair at a given time. Forex system trading could be based on a set of signals derived from technical analysis charting tools or fundamental news-based events. The day trader's currency trading system is usually made up of technical signals that create a buy or sell decision when they point in a direction that has historically led to a profitable trade.

Overcoming Fear

Have you ever been in a situation where you have evaluated the market, saw your strategy set-up perfectly and then just couldn’t pull the trigger? You become paralyzed, unable to move even though you know your high probability set-up has just triggered.

This fear is very real for many traders and very detrimental to your account. Fear is a powerful emotion, distorting fact from fiction and often creating an emotional response. Many experts tell you to trade without emotion, but is that really practical? We are indeed human. Remember the basis for the reaction is real, but the fear usually is not.

Fear blocks your ability to execute high probability trades and we must find strategies to manage our fear. With time comes experience and for traders it is the ultimate super hero for fear.

In the meantime, if you are struggling with fear-based execution challenges here are some simple tips to get you over the hump.

Embrace the Emotion

Acknowledge your emotions. If you find yourself analyzing a trade to the point of paralysis don’t try to ignore the emotions. Separate yourself from this river of negativity. Visualize yourself on the river bank as these torrents of emotions are flowing by. You will gain great awareness to the triggers and learn a lot about who you are as a trader.


Separate Fear from Fact

If you fear pulling the trigger because of loss (what if I am wrong?), that will stop you from enjoying the profits the market may make available to you at any given time. Don’t avoid the action that might cause the loss, but re-frame the problem as fear itself. You have evaluated the market, figured out your reward –to-risk ration and accepted your potential for loss through your stop-loss and money management plan. At this point loss is not the obstacle – fear is. There is no such thing as failure, only feedback and that will guide you to consistent and profitable trading.


Re-Think the Consequences

If your mind is off to the races with all sorts of possibilities what’s the worst that can happen if Murphy’s Law gets enacted during your trade? You have already addressed this in your trading plan. Plan your trade and trade your plan. Again fear is trumped and the only way it can be realized is if you didn’t follow your plan. Sticking to your plan is the clearest way to distinguish between a losing trade, which is just a part of business, and a bad trade which is a career killer!

Act in Spite of Fear

Feel the fear and do it anyway. Return to your mission statement or your “why?” statement. The reasons you trading should be big enough to overcome any possible obstacle your fear emotion can conjure up. Acknowledge the fear and do it anyway. You may not have a winning trade, but you will have executed your plan and over time probability will pay you back.

What is all comes down to is the intangibles of trading. Why do I and so many others drive home discipline-based Forex Education and Training approaches. You will never get rid of fear, but with practice you can turn it into a manageable obstacle and deploy it to your advantage.

A Forex Trader’s Lifestyle

Whether you are a novice Forex trader or a seasoned veteran one aspect you must always take into account is to ensure your lifestyle supports successful trading. Forex trading is no different from any other endeavor in life. Whether you are employee, employer or self-employed you must take the time and effort to ensure your environment is conducive to your success.

Take a look at your surroundings and make sure your lifestyle supports you being a successful Forex trader. Take in all the factors of success (how YOU define success) evaluate your factors to make sure your trading is:

Specific – Do you have specific trading goals and objectives? Do you have a trading plan? Ask yourself is your plan to general?

Measurable – Do you have systems in place to objectively measure your performance? If you don’t know your numbers then do you really have a trading business?

Has a Timeline – Do you have a timeline for which you are measuring your goals and objectives against?

Controllable – There are many aspects in Forex trading you can’t control, ensure that the areas your can control are firmly defined and managed with discipline.

Programmed Into Your Lifestyle – Are your Forex trading activities programmed and congruent with your lifestyle? Balance is important so make sure this passes the test!

Taken in Small Steps - This business is a marathon and not a sprint. Start off with small steps and build. The best practice trading principals do not change with account size.

Accountable – Forex trading (or any trading for that matter) can be such an isolated activity. Find ways to have others participate and hold you accountable for your goals. Make it real and measurable!

True Forex success is built through smart work and dedication. By establishing the trading lifestyle that best supports your personality will guarantee prolonged success. Remember, it is your Forex Journey. Be sure you enjoy the ride!

Make Forex Education Your Top Priority

I have been doing a ton of reading this summer. This is not atypical for me. Reading is a way to continue my education and renew my focus on the task at hand. I have recently been exposed to several Forex training evaluation sites, as well attended some of those FREE Forex workshops you see on TV (some of them are still calling me!). It got me thinking

… “What advice can I provide to all those who are eager to learn the currency market with all that information out there without getting burned?”

I have come up with 3 Golden Rules to follow when evaluating currency training opportunities.


1. Know Thy Self – This is probably the most important advice I can provide. There is good training and bad training. Often the worst training has the best marketing plans. First figure out how you best learn information. Are you the type of person that can read a manual on rocket science and build a spaceship or are you a person that needs to be shown things through personal instruction and repetition? Figure out how you receive and process information and align Forex training source that fits your method of learning.

2. Don’t Believe the Hype – There is no golden system and it will take considerable effort to trade currencies successfully. Accepting these realities before embarking on your Forex Journey can save you tons of money and more importantly time spent climbing up the learning curve! If it sounds too good to be true, then it probably is. This should be no surprise! It is buyers beware market out there. Look for a Forex education company that can provide you with some solid aftercare resources.

3. Be Realistic – It is a journey and all good journeys take time to develop and flourish. This can be a remarkable journey, but one where you are apt to lose your account a few times before you surrender to the market and learn to take what the market is offering for profits that day. Listen to recommendations, but make decisions based on your own criteria, because in the Forex market this skill will serve you well!!

When reading internet-based sales letters or infomercial or forums, just remember that everyone has an opinion, but in the end the only one that matters is your!!

The Forex Educational Roadmap

The roadmap to successful forex trading is, in many ways, a parallel road to success in life in general. To balance one’s life also requires a balance of often overlooked skills. These skills include mental, physical and spiritual balance and renewal. In forex trading seminar, after seminar, the so-called “soft-skills” gets mentioned only after slugging it out for 8 hours hearing discussion around ascending triangles and FOMC monetary policy. In the end, one can overcome the technical and fundamental challenges greeting new traders with time, patience and dedication. Unless one also commits to self-mastery over the mental side of trading and develops strategies to gain mental control, long-term success will be unlikely no matter what financial vehicle you chose to trade.
To Roadmap to Successful Forex Training is broken down into 4 sequential destinations:
1. Education
Education is the key to understanding the forex market and mastery of the necessary skills to become successful. There is no substitute for hard work and dedication here and no short cuts as well. I have found no other organziation that can so effectively grow and continue to provide high quality training as you grow as a forex trader. Their community of traders are unmatched. You get to meet traders from all levels and gain from their experiences. That is an asset no trader should be without!

2. Personal Self-Mastery
Personal mastery is bringing balance into all aspects of your life to achieve the necessary harmony which will heighten your education and bring a razor sharp mental focus to all your trading activities. Personal mastery will go a long way in developing your FX trading psychology and philosophy. Two books are must reads in this category; Think and Grow Rich and The Power of Full Engagement!

3. Forex Systems and Tools
One could be the best ditch digger, but if you only had a spoon to dig with your ditch would not be nearly as successful as another one with a back-hoe. Developing a comprehensive trading plan and philosophy will be a critical step on this portion of your journey.

4. Live Forex Trading
Demo accounts and simulated trading is good, but nothing is a substitute for live trading. It is only through live trading that you can accurately assess your skill and balance in mastery of your previous roadmap destinations. Remember, there is no such thing as failure, there is only feedback! This is a personal preference. Open as manay demo accounts as possible and go witht the broker you feel most comfortable with. Just make sure the broker is regulated by CFTC and NFA.

5. Continuous Education and Training

In forex trading, as in many aspects of life, many individuals quite before achieving their desired level of success. It has been said that, like a flower, if an individual stops growing and learning, the dying process has begun. Having a true thirst for knowledge is a guarantee formula for success.

Forex Trading Tools

"This is a collection of Forex 'Tools of the Trade' -- products and services that we have found to be the best of all we have tried over many years, and additonally selected because the companies behind them have demonstrated reliable service, integrity and value. They are beginner-friendly, yet offering a growing trader lots of support. Look for the Forex-Trader discounts.
To trade Forex successfully you will need the basics:

1. A reliable, reasonably fast computer, preferably with high speed access to the internet (DSL or Cable Modem for example). An Internet dial-up account or the telephone becomes your back-up should your primary access fail.

2. Good foreign currencies 'charting software' with a reliable, accurate data feed so that you can track currency movements in real time and perform the technical analysis necessary to trade effectively.

3. An on-line Forex trading account with a brokerage firm which provides a reliable Trading Platform, fair 'spreads', quick execution of trades, good on-line reporting, and excellent customer service.

4. A subscription to at least one Forex Trading 'Advisory Service' which provides market overviews at least daily. This gives you the context and overall directions of the market and will greatly assist in your own analysis and decision making.

Most importantly, you will need effective training and/or mentoring to master the techniques and discipline which 90 percent of beginning traders lack. This can be home study via cd's or on-line lessons, classes you travel to, or trainer/mentors who come to you. "

Trust Yourself

When you turn on the TV (especially mainstream media) you are inundated with news of the demise of the dollar. Business news, national news and even your local news channels are leading into events with reports of the dollar and the economy. Analysts are featured and opinions are smattered across the airwaves in an attempt to provide an oracle response to current economic events.

Beware the source and follow your system.

In these volatile times it is easy to get caught up in the hype provide by all the news media and analyst. It is natural to want to look for guidance. Remember to trust your system and more important trust yourself. You, after all, are the single largest determinant of your success.

Your approach should remain consistent, almost impervious to the events occurring because you follow your plan with discipline and ruthless detail to executing at optimum performance.

Be disciplined and follow your plan. If market conditions don’t suite your style – sit this one out until conditions provide your with your personal edge!