The Forex Trading Holy Grail Revealed at Last!

May 24th 2010, By Mark Rayner

This is a very special message to everyone searching for the forex trading holy grail system. I intend to reveal it in this article. Before I begin, I would like to say that anything worthwhile in life takes time and effort to master. Forex Trading is no different.

There's a never ending supply of marketers trying to sell you on the idea of easy money. It's all lies designed to part you with your money. Buying useless systems is only the first mistake, trading the system is what really costs you money.

Those who survive their early 'guru advised' trading mistakes, get smart and learn to recognize the lies. Those who don't survive, go away with a bad opinion of Forex. Without the right information, they were doomed to fail from day one. That is very sad.

Holy Grail 1

A profitable trader offered to give his trade calls to a beginner trader. The first 3 trades sent to the beginner, were stopped out and the beginner became fearful and stopped trading.

Because he stopped trading he missed the next 2 trades that were very profitable. Seeing that he had missed 2 good trades, he jumped into the next trade which was stopped out again. Then he quit altogether.

At the end of the month the profitable trader was up 500 pips but the beginner was down 200 pips. So what was the difference? They both had access to the same trades. The difference was what happened in each of their minds.

It's true that two people can trade the same system and one will lose money while the other makes money.

Everything you do comes from your mind set.

So the first and biggest holy grail in trading is: "if your are not in control of your emotions, your emotions are in control of you".

For the most part, our emotions are illogical, and never intended to be used for trading.

If we have a clear system, with a clear set of rules, all that should remain is to look at the charts and make clear informed decisions, based on what the chart is showing us. But alas, the voice in your head starts to worry about loss, get excited by gain and the clarity of what the chart is clearly showing us gets mixed in with the blurry world of emotion.

The emotional trader needs to learn to "trade what they see", Not :trade what they think".

Holy Grail 2

Everything in forex trading is based on raw price action and Not indicators. Indicators should only be used to help enhance price action. We would not drive a car, just staring at the oil, temperature and speed gauges. They are only helpers, we need to watch the road itself.

The market moves the way it does due to the battle between traders buying and selling. It goes up when there is more buying demand and it goes down when there is more selling demand.

So learn to read the market, and understand the mass mentality of the traders driving it. Understand there are two groups of traders in the market, the big [institutional] traders and the retail traders. The big traders know how to play the small players, just like an experienced poker player can outplay a rookie.

Everyone thinks the USD is going up? Now watch the institutional's push it the other way, and take out the retail traders stops. Start to think outside the box.

So the second holy grail in trading is: "Price action is the most important indicator to master, combined with an understanding of what drives it." (here is a great video about price action)

Holy Grail 3

The last thing you need is a good system developed and used by professionals who are willing to mentor you in a live market and show you how to trade the system. We have some great systems here that have been proven to work very well. Watch some of our videos to find out more

Whatever you use, you can never ignore the other factors effecting the market. You must have a holistic view. Did news just come out that strengthens the dollar? is price hitting the top of a channel on the daily chart? It does not matter what system you use to pull the trigger, if you ignore everything else.

You don't have to be an expert on everything, but you do need to know what may spoil your trade. Most of my losing trades are due to something I missed.

So the third holy grail in trading is: "Find a proven system and a mentor willing to teach it to you in a live market"