Currency Trading Basics - Making Profits

by : Kelly Price

Here we are going to look at currency trading basics and the most basic question you need to answer before you start trading - If you don't know the answer you will get wiped out and join the 95% of losers, answer it correctly and you could win and win big so here is your question:

My Trading Edge is (defined) .... To elaborate

Why is it you will win what's your edge over the 95% of traders that lose. Think about it carefully and while you are, the correct answer is NOT.

-I have bought a forex robot from a vendor with a simulated track record
-I trade news stories and expert opinion
-I trade the supply and demand fundamentals
-I use a day trading system
-I Employ forex scalping methods
-I use scientific theories to predict market movement
-I am clever and have a complicated trading system
-I like to buy low and sell high

All the above are statements that will see you lose and do not constitute a trading edge and are all commonly stated by novice or naÃ?ve traders.

A trading edge has to be something that is based on correct logic about market movement which, you have confidence in. This then enables you to execute your forex trading strategy with discipline for long term success.

Trading success is something that comes from within and while all traders have different trading edges, they all have certain things in common which are:

- They have avoided all the forex myths (and there are loads of them)

- They have learned forex is an odds game not a game of science

-They know a method is not enough and that confidence leads to

- Discipline the single most important variable of trading to keep emotions at bay

-They know its not the news or fundamentals that are important its how their perceived that determines the course of events

-They have the ability to run profits and cut losses and have a money management strategy

-They know forex systems need to be simple not complicated to succeed

All the above come together and from this comes their "trading edge" the single variable that they have which will lead them to long term success.

The only aim of trading is to make money - its how success is judged.

Forex trading has a lot in common with this poker quote

"See, in my world - the world of high-stakes gin and poker - we play for cold, hard cash. It's all business, pure and simple. Anyone who thinks card playing is a 'game' - I'll show you a loser. Money... M-O-N-E-Y. That's how you measure success. One dollar at a time. One chip at a time. That's how you keep score."

Stu Unger

Know Your Edge and Win Big

Stu knows what the aim of the game is and he also knows his edge over other players and you must as well. It's one of the critical currency trading basics and if you do know it and can use it to your advantage, you could end up in the elite 5% of winners, who make the big consistent profits.