In this article, we will study a group of novice traders, who had two weeks training and then went on to make millions in profit. You may not make millions but if you see how they made money, you will see how you can enjoy Forex trading success.
Richard Dennis was a well known trader who had made millions but he was very modest and claimed anyone could be a successful trader providing, they had the right method and mindset so he set himself a challenge:
To teach a group of people, with no experience to trade in just 14 days and these people would be both sexes, all ages and of a varying intelligence. The group was a good mix and contained an actor, a security guard and a female accounts clerk to name just a few.
After their training, they started trading and started piling up triple digit gains and went on in a period of 4 years to make hundreds of millions of Forex profits. So what was the secret of their success? I have summarized the key points behind their success below and some of them may surprise you so here they are:
The Best Forex Strategies are Always Simple
The best strategies are simple and use technical levels to enter trades. The trading system taught, was so easy to learn it took just a couple of weeks. Being clever or working hard on a trading system, does not guarantee success so keep it simple and you can win.
No Prediction is Needed to Make Money
Despite what many gurus will tell you – Forex prices cannot be predicted! If you want to make money you simply trade price action and watch for confirmation of trend changes. The strategy used was based on trading breakouts and traded long term trends which is always going to make money.
Money Management – Losses Don't Matter the Size of Them Does!
The system lost over 70% of all trades placed but the strict money management rules meant, they were always small. On the other hand, the big profits were run for weeks or months and covered the losses, giving the traders great long term profits.
Forget the people who tell you, that you can win over 90% of the time – its a lie. Most of the successful traders in the world, win less than half their trades but that does not matter, because use proper risk control to cut losses and run profits.
The Key Factor for Success – Your Mindset
It's simple – If you don't trade with discipline you won't make money. Let your emotions get involved and you will run losses which will end up with your account being wiped out. The traders in the group, had no problems learning the system or understanding why it worked – but they all found following the strategy with discipline the hardest part however they knew, that's what they had to do to win and their discipline was rewarded.
Can You Become a Successful Forex Trader?
Yes you can, as you can see from the above story but the one key point to keep in mind is its not learning a method which can beat the market which is the key to FX trading success, its adopting the right mindset.
It is and it's the true secret of currency trading success – understand it and you can make a lot of money trading global Forex.