How to Achieve Currency Trading Success: Part 2

Choosing a Trading Method While there are many ways to achieve currency-trading success, all methods have the following salient points in common

Choosing a Trading Method While there are many ways to achieve currency-trading success, all methods have the following salient points in common: 1. Simplicity Most of the best trading systems are simple. There is no correlation between how complicated a strategy is and how successful it will be. In fact, the simpler a system the more likely it is to be robust in the face of changing market conditions. Some of the most successful systems of all time have been extremely simple and you don't need much mathematical knowledge to understand them. 2. Liquidate Losers Quickly and Run Big Profits: The basis of any successful trading systems that deals in leveraged products is: You need to be able to run the big profitable trends and exit losers quickly. All good trading methods do this, and use strict money management rules, to ensure preservation of equity. 3. Understand your Method This may sound obvious, but you need to understand your trading method, and the logic behind it, so you can execute it with confidence and discipline. 4. The Importance of Discipline Currency trading success is rooted in a successful method applied with discipline. This means a trader has a method and follows it. This however is much harder in practice than many traders believe. When money is on the line all traders emotions come into play and unless they can maintain discipline, currency-trading success will elude them. Let's look at some ways to maintain self-control and discipline when making trading decisions: Firstly, you must be confident in your trading method. You should know exactly what you are going to do: