Monday, May 26, 2008

Forex Trading - Why You Can NEVER Predict Forex Prices

If you think you have to predict forex prices in advance to win your wrong. It's a sure fire way to lose but you can make huge profits if you understand this simple point... Forex trading is a game of odds

That's all it is but understanding this is your key to forex trading success. There are lots of systems on the net and vendors who tell you that you can predict prices in advance but prediction is another word for hoping and guessing and that won't get you anywhere in forex trading or in life.

There is no way to predict what will happen, as markets don't move to science ( and if they did we would all know the price in advance and there would be no market) but they are not random either - chart patterns come around time and time again you can trade for profit. You won't win every trade but if you win more than you lose you can make money and that's the object of forex trading.

You need to simply trade the reality you see on the charts no hoping or guessing and act like a good poker player would: When you see a good hand in poker you bet on it sure you're not guaranteed to win but if you always bet with the odds in your favour you will win longer term with your forex trading strategy.

A Great Way to Trade the Odds Is to trade breakouts to new chart highs or lows - look at any chart and you will see most major moves start from breakouts. With a breakout, you don't predict you wait for the breakout to occur and trade the reality of the price break. While this sounds simple most traders can't do it. Why?

Because they haven't predicted it and think they have missed some of the move. They therefore want a pullback where they can get in at a chart low and of course the trade does not pullback and they never get in.

Traders like to get in at a "comfortable level" and predict a top or bottom but the odds never favour them and they lose.

The lesson of this article is - trade the reality and forget prediction and focus on the odds. If you trade in this way you can make a lot of money and a breakout forex trading system is a great place to start.

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Article Source: http://EzineArticles.com/?expert=Monica_Hendrix

5 comments:

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Mike said...

Hi
Thank you very much for a great blog!
I am a blogger too and I have tried several affiliate programs to make some money from blogging, such as Forex Yard, E-toro, and Earn Forex.

By far the best program I came across so far is a Cashback program where you get a discount on all your trades. I use it myself and last month I got $270 in cashback from trading two Alpari Uk accounts with a deposit of about $5000 in total. Spreads remain the same so it is essentially “free money” if you are already trading.

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Maybe this could be something for you to promote on the blog or even write about in your next newsletter to your subscribers.


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Good luck!

Best Regards,

Mike

Jacob said...

Hi,,
Generation is probably more money-wise when it comes to investment and financial forethought. And the market is more than willing to take the dollars we spend or invest.

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