Want to hear a scary statistic? Well, here it is – whether you want to hear or not: “At least 70% of traders lose money” in the stock market. This is according to a report from the North American Securities Administrators Association (NASAA). The report goes on to add that “70% of public traders will not only lose, but will almost certainly lose everything they invest.”

Yikes! Everything? How can that be? Especially with all the charting tools, the stock trading simulators, the books, courses, coaching, and seminars from stock-trading gurus that are available today.

One more little statistic from that report: In all, only “11.5% [of traders] might profitably trade” the markets.

And yet you constantly read about people raking in bushels of cash by day trading – most especially penny stocks. It doesn’t seem to add up.

The Difference Between Winners and Losers?

The difference between the 70% of losers and the 11.5% of winners is – what do you think? The best strategies? Guess again. It is, hands down, a good foundational education about trading and about the markets.

Case in point. A number of years ago a man named Ralph Vince (an expert on the mathematics of trading) conducted an experiment. He chose forty highly educated people – all with doctorate degrees — and gave each of them $1,000 in play money. He then invited them to participate in 100 rounds of a computerized stock trading game. They were even supplied with 100 trades that had a 60% winning percentage.

At the end of the experiment only two of these highly educated individuals – armed with winning strategies – made a profit. Thirty-eight failed! Why?

Specifically because winning strategies do not a trader make!

The criteria that will turn you into a successful trader is time, knowledge, experience and proper guidance. In a word, find some good day trading courses and see which one fits your needs.

Two Ways to Learn

As with most any endeavor there are basically two ways to learn. The first is, obviously, through reading and studying (seminars, online courses, books, videos, etc.). We might call this the formal training.

The second is by experience. The hands-on sensation of the actual day-by-day buying and selling which trigger your roller coaster highs and lows of wildly gyrating emotions. Most day-trading courses included both.

The formal training allows you to learn from the mistakes of others. From their teaching you can learn to avoid the worst of the pitfalls involved in day trading.

Hands-on training helps you get the feel of entering and exiting a trade. The feel of watching that chart move once you’ve pulled the trigger on a trade. The act of exiting at just the right moment to make the profit!

Can you imagine learning to drive a car from reading a book? Or learning to swim from reading a book? So much of it has to do with getting the “feel” of what you’re doing. Trading penny stocks is the same way.

Hands-on training will also help you to know yourself. (It is highly recommended that you begin by paper trading or other means of simulated trading.) What are your basic emotions with regard to money? To investing? To winning? To losing? You had better know ahead of time. Believe it or not, your own basic emotions will play a big part in your success or subsequent failure in day trading penny stocks.

Watch Those Emotions!

Fear is that emotional state of anxiety due to a real or an imagined presence of danger. Fear can impair judgment and cause a trader to recoil from making a trading decision, or to delay a trading decision response.

On the other hand, a self confident person, one with a positive attitude, has a more positive expectation. That person is more likely to take action in spite of a sense of fear. Consider this: winners manage their fear; losers are controlled by their fear.

However, even the most fearful person can overcome that fear with the proper education and training. Using day-trading courses can help to develop self discipline. Self discipline will evolve into self confidence. Once you fully believe in your own abilities (to successfully trade and profit from penny stocks), you will be able to assess and accept risk, and then take decisive action.

If the fear seems overpowering, it is vital that that fear be analyzed. Where does it stem from? From childhood? How can it be faced and worked through? The answer most usually comes through more and more education – both formal and hands-on.

Day Trader’s Traits

Successful day traders must think outside the box. They have to think quickly and wisely. When stocks are fluxuating at split second intervals, making a wrong decision, or ignoring a trade could result in the lost of a great deal of money. Does that describe you?

From the outside looking in, it may appear that day trading penny stocks is akin to gambling. And of course, some traders would prove that assumption to be correct. But they are not the ones who are consistently in the profits.

Day Trading as a Business

Rather than gambling, day trading penny stocks should be thought of as a business. You are both the employee and the boss in this business. You will need another employee – your broker. There will be competitors – the other traders out there, and of course the stock market itself. Just as with any business, there is buying and selling going on. The difference with day trading penny stocks is that this business is extremely fast-paced. (Roller coaster, remember?)

Another part of your day-trading training is to take a realistic look at your day trading business and make plans that will carry you through the long haul. What are your goals and aspirations? The first of course is to make money. But, just as important, is to make money consistently. How is that going to happen?

Working Capital

Understand that your working capital is vital for your business’s survival. Capital preservation is more important than capital growth. Reinvesting profits back into your business should be high on your priority list. What percentage of your total portfolio will be given over to penny stock day trading? Part of it? Half of it? All of it? Make that decision before you plunk down your hard-earned cash.

Can YOU Profit With Penny Stocks?

So can you profit with penny stocks? Absolutely, you can. I encourage you to learn all you can about day trading. Look for good day-trading training courses. Day trading penny stocks can be exciting and rewarding. And with regard to those statistics cited in our intro – they’re really not that scary – as long as you are in that 11.5%. And you can be. Keep your feet firmly planted in good basic foundation of education, and don’t allow yourself to be swept along by hype and high-pressure come-on’s.

Do that and you too can enjoy the cash rewards from successfully day trading penny stocks.

Three of the better day-trading training programs out there are outlined here.

http://www.squidoo.com/daytradingcourses

There are plenty of freebies offered to get you started. There are simulators, coaching programs, webinars, mentoring. You name it, it’s included! And you’ll see there is something here that fits your wallet precisely. If you think education is expensive – try ignorance!! http://www.squidoo.com/daytradingcourses

If that is the case, it is unlikely to be the strategy that’s the problem. Profiting from Forex can be done through any number of tried and test strategies. Just purchase a training package from many of the reputable online traders or brokers and you will find them.

The main problem that stops traders from profiting from Forex is in the mind! Successful Forex trading involves a whole range of mind control skills and mental disciplines that take some time to develop.

So if you are still struggling after one or two years of trading the Forex, start to focus your time and energies not so much on searching for a new strategy or trading methodology, but rather on yourself and how you approach and manage trades.

Monitoring Emotional State

How can this be done?

By monitoring our personal responses and emotional state during the course of a trading day.

Once we have a strategy we have confidence in, it is merely a case of waiting until the setup appears where we can employ that strategy.

Here is the problem. The Forex market goes through long periods of consolidation and low liquidity. The anxious trader will desperately look for trading opportunities and deviate from the strategy they have selected.

So things may not be quite right, but it looks reasonably favorable so in they go only to be dismayed when the trade turns against them.

It takes much mental discipline to restrain oneself from going into trades that do not match the criteria the strategy demands.

Once in the trade, mental discipline is again required so the trade is managed properly.

Have you ever found yourself doing this?

You enter the trade after examining risk and profit potential. Your stop is strategically placed 25 pips from your entry point. Price starts to go against you. It gets dangerously close to your stop and you think to yourself, “the trade needs a little more room for maneuver so I’ll push back the stop by another 5 pips.” Price continues to pull back getting close to your new stop.

The novice trader now thinks, “Just another 5 pips to make sure I’m not needlessly going to get stopped out of this trade” and moves the stop back to 35 pips.

Almost predictably in this scenario, price continues stopping out the trade at 35 pips. The trader has now suffered a loss of 35 pips instead of 25 pips which was originally factored in.

Continuing to trade in this manner makes profiting from Forex pretty remote! It takes mental discipline to stick to the plan!

Winning And Losing Responses

Then come the emotions associated with winning or losing.

The newer Forex trader will feel emotions of elation on getting a winning trade. In fact, the whole day can appear bright and cheerful with just one winning trade.

On the other hand, a losing trade can put the same trader into the depths of depression or despair. The day seems grim and hopeless leading to flawed judgment on the next trade which also goes wrong and compounds the attack on the trader’s level of confidence.

It takes mental discipline to keep the emotions in check trying to avoid feeling either elation or despair on the basis of a winning or losing trade.

The disciplined trader approaches order entry almost mechanically realizing there will be winners and losers and that the strategy, if adhered to, will in the end win out!

So how can we develop this tough mental condition and strong mindset if ever we are to see the day when we are actually profiting from Forex?

Just as the trader will keep monitoring the charts, watching price action and candle formations during the course of a trading session, the same monitoring activity needs to be applied to the mental and emotional condition.

Self-Monitoring Sessions

This can be achieved by constantly asking questions of oneself. For example:

• What am I feeling right now?
• Am I in a relaxed state or am I anxious, agitated, or frustrated?
• Am I desperately looking for trading opportunities when no high probability trades are setting up right now?
• How did I react after my last trade whether it was successful or not?
• What can I learn from that and how can I better handle my emotions next time?
• Am I enjoying the experience or am I nervous of the markets?

Many sports participants and Olympic medalists spend huge amounts of time and resources on getting the right mindset. Coaches work with them to develop mental discipline and mind conditioning so they perform well under pressure and become aware of their own emotional state and feelings.

Often, it is not so much the level of skill or physical strength that makes the difference between the winner and the rest, it is competitor who has mental toughness who has the edge!

Focus On Mindset

So if you have been trading the Forex for one or two years already with mixed results, why not focus on your mindset.

Select a strategy that has a tried and tested track record by other traders and professionals who are already profiting from Forex, and then spend most of your time and energy developing the mind skills necessary to get into the small percentage of traders who actually make money on the Forex!

To learn how to preserve your mental and emotional resources in addition to your account equity click here:

http://www.vitalstop.com/Forex/Advisor/forex-day-trading-mental-equity.htm

Do you know the important lesson Mohammed Ali teaches us about Forex trading? Read it here:

http://www.vitalstop.com/Forex/Advisor/forex-online-trading-mohammed-ali.htm

For a free pivot point calculator, Fibonacci calculator and the best free economic calendars click here:

http://www.vitalstop.com/Forex/tools.html

Match Your System with The Market

Of course, whatever style or method you choose to trade, it needs to be profitable. Mathematically, this means that at the end of the day (or month, or year), if you clump all the winners and losers, you’ll end up net positive. Statiscally, this is called having an edge, or having a positive edge. You must make sure, through backtesting and managed forward testing, that your system is indeed profitable. You might be asking, “But I can’t seem to follow my trading plan.” We’ll get to that later, but for now, let’s assume that you CAN follow your trading system perfectly.

Matching your system with the market means that the system works for that market at the time. Keep in mind your system might work for the EUR, but maybe not for the CAD. Also keep in mind that the system might have worked for the previous 6 months, but something happened to the market that the participants are acting differently now; this would mean that your system was profitable for the past 6 months but the market change has nullified your system’s edge.

Let’s assume that your system is somewhat profitable if you could follow it perfectly. So what’s next?

Match The System With Yourself

At this point, you might be thinking, “Hey, I was looking for a How to trade forex article, not some self-help psychoanalysis article.” Do yourself a favor, and read through the entire article, because this might be the key ingredient your trading has been missing.

This is the part where 99% of the traders don’t seem to understand. If you happen to talk with other traders, please feel free to point this section of the article out; it might be the missing key ingredient in your entire system.

It’s pretty obvious that if you have a profitable trading system written down in your trading plan, but you can’t seem to follow the rules, that trading plan is as good as useless. So why do you deviate from you trading plan that you’ve researched so hard for? There are two primary reasons: 1) Your expectations as an analyst versus your expectations as a trader. And 2) Your trading system doesn’t match your personality. I could write an entire book on the first issue, but we’ll focus on the second issue in this article.

To trade with consistency, you need to understand how your subconscious mind works. If your trading system contradicts who YOU are as a person, your mind will NATURALLY pull you away from that trading style, and SUBCONSCIOUSLY gravitate you to a particularly different trading style. A lot of people get confused here, and this is one tough concept, (and really, not too many people want to learn about it) so don’t worry if you’re confused. Let me give you a few examples, the first ones illustrating basic principles, then drilling down to more subtle points:

First example is John. John likes playing video games. He loves playing 5 handed table Texas Hold’em (poker) with his friends. He likes playing hardcore sports. He is a risk-seeker. His natural trading style is day trading and/or fast swing trading. He cannot naturally trade longer time frames because that’s not who John is, and John is a fast-paced guy. So no matter trading system he’s researched, backtested, and written, he won’t be able to trade it unless it fits his naturally fast-paced personality. Also note that his personality has gravitated John towards all these other fast-paced activities like video games and poker.

Let me give you a more subtle example: Susan was an underdog all her life. So she pictures herself as David who fights against all the Goliaths of life. Whenever there’s a competition, election, or basketball game, she always roots for the underdog because subconsciously she relates more with the underdog.
How does this affect her trading? She’s naturally a fader. Fading the market means going the opposite of the major trend. So while trend followers go with the majority of the market participants’ decisions, Susan is the opposite; she naturally likes to bottom/top pick and go against the trend. This means that she has to either 1) change herself to match the trend following system (which is hard), or 2) find and develop a profitable fading trading system (which is easier). Mostly likely, she’ll have a better time trading sideways markets, fading at the edges of the channel. Of course, how she decides to trail also depends on her self-image.

At this point, you might be thinking, “Ok, this is starting to make a little more sense now. But I don’t really know how to do all this stuff.” Let’s move on to the final point.

Know Yourself

Schedule a 1~2 hour block of free time and go through this this action plan:

• 1. Make a list of all the activities you enjoy doing.
• 2. Make a list of all the people you naturally enjoy hanging out with.
• 3. Make a list of all the movies, TV shows, sports, etc. you naturally find pleasure in.
• 4. (Insert more questions you can make up)

Take a close look at all those items, and focus on analyzing what kind of item it is. For each item determine:

• 1. Is this fast-paced, medium-paced, or laid back? Are you a New York City person or a Southern California person?
• 2. Is this more number smart or people smart? Are you naturally good with numbers or with peoples’ feelings?
• 3. Is this more of an underdog or topdog activity? When you watch a tennis match, do you root for the topdog or the underdog?

All these things reflect who you are at the time. The more laid back you are, the larger the timeframe you need to trade (because you would trade less frequently and the trades would take a longer time). The more fast-paced you are, the more you should swing trade or even day trade. The more number smart you are, the more systematic, quantitative, and progamming-oriented you are with your backtesting and trading. The opposite would be much more of a discretionary trader. The more topdog-inclined you are, the more of a trend-following system you need to trade. The opposite would be fading at the edges of a sideways channel.

But keep in mind that most people are a combination of the two. Explore yourself. Take some time for self reflection. Here’re more questions for you to really think about:

• 1. What does this list say about how I should trail my trades?
• 2. How should I enter and exit? Partial profits or not?
• 3. Which markets should I trade? Which session should I trade?
• 4. Should I consider trading stocks, options, or futures instead?
• 5. Should I use technical analysis, fundamental analysis, or both?
• 6. Am I even right for trading?

Let’s look at one last example:

Mathematically, if you don’t take partial profits – that is, you enter and exit only once, and not exit multiple positions – you would make approximately 3~4 times more profit than traders that do take partial profits. To clarify, let’s say you’re long 3 contracts, and you unload 1 lot at +25 pips, the second at +45, and the last at +60: this is what I mean by taking partial profits. But let’s say you’re short 3 lots, and you decide to exit all 3 lots at +47 pips. That would be the opposite of taking partial profits.

But again, let’s take a closer look at what I talked about in this article and relate it to this point: Sure, on paper you’d be more profitable, but then again, all trading plans are profitable. It’s just that you couldn’t follow that plan in the first place. Just as likely, not taking partial profits is more profitable, but it’s the same principle – it’s easier on your mind to take partial profits. It’s a trade off between psychological ease and economical gain.

There is a deep underlying reason why every trader naturally wants to take partial profits, and I could write a separate article on it, but suffice it to say that everyone initially is naturally inclined to cut profits short and let losses run. (As a teaser, it’s about how we grew up in society/school/parents that has instilled beliefs that are beneficial to us in society but detrimental in the markets.) The more question is can you trade this way? Should you trade this way? Forget about what’s more profitable on paper. Focus on being able to trade with consistency by trading according to your natural self.

Well I hope this article has shed some interesting insights with your trading. Perhaps you’re ecstatic at this new finding, perhaps you thought this was a waste of time, or perhaps you don’t even have a trading system yet. Don’t worry, take your time.

So what now?

So now you’ve done your due diligence and now you know what your ideal trading system is. Well, good news! We’ve done most of the research for you. My website has compiled most of today’s forex trading system. If you’re somewhat of a discretionary swing trader, I highly suggest this Forex trading system. Feel free to browse for the right system for you. Feel free to even browse for more Forex education.

Now, before I finish, I’d like to leave you with this: Risk is not a function of the market, but a function of the investor. The greatest thing you can invest in is not in a specific instrument or market. The greatest thing you can invest in is yourself. Never stop reading, never stop learning.

If you think you can win at forex trading:

What’s your trading edge?

A trading edge is – the reason you will win, when 95% of traders lose and lose quickly, so what differentiates you from the vast bulk of losers:

What’s your edge?

If you think following the news, a vendors mechanical system, or day trading, to name three losing ways of trading – you don’t have an edge.

So what is an edge and how do you get it?

The answer is you need understand the following equation for forex success and here it is:

Learning the RIGHT knowledge + having Confidence in Your Knowledge (and knowing your edge) + The Discipline to Follow your plan – Forex Success

Forget about following forex trading systems with simulated profits – you will NEVER Win. Even if you find a profitable one, you need to know how and why it works and how it gives you an edge – success is on your shoulders, no one else’s and by far the best way to achieve success is to do what all successful traders do:

Take responsibility and do it yourself – ever heard of a successful trader who is a follower? No neither have I – so don’t try it.

Forex trading success to a degree relies on method – but if you don’t have confidence in your method, you will never have the discipline to apply it and without discipline, you simply have no method at all.

A trading edge comes from understanding what you are doing and why it gives you an edge.
It can be anything, everyone’s edge is different – but you must understand what it is and why it will give you success, when 95% of traders wipe themselves out.

Forex trading looks easy and learning the basics is – anyone can learn to trade forex but very few win and the reasons never change:

Following others, no confidence and lack of discipline etc

Forex trading can give you a life changing income and to achieve this is not easy – of course its not! If there are big rewards to be made then it’s going to be hard to achieve success. There is however a big difference between something being impossible and something being achievable – forex success is within reach of anyone.

Just work smart, have confidence in your edge and the discipline to apply your plan and you can achieve forex trading success.

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For free 2 x trading Pdf’s with 90 of pages of essential info and more on Forex Trading Basics visit our website at: http://www.learncurrencytradingonline.com

The first point you need to keep in mind is 95% of traders lose and only 5% win. While anyone has the ability to learn currency trading and win, most lose.

So what separates out the winners from the losers?

The real difference is mindset and currency trading is really 20% method and 80% mindset and some explanation will make this clearer.

Discipline and Self Control

Anyone can learn a forex trading system but the key to success is, executing it with discipline when you are losing. It’s not easy to keep putting in your trading signals, while the market hands you losses and makes you look a fool. You need to be disciplined until you hit a home run.

You only get discipline from confidence and understanding.

This means, learning currency trading basics, on how and why prices move and getting the right forex education. You can then build a simple currency trading system.

Sheep Get Slaughtered

The traders who act like sheep and try and follow others, by buying forex robots or gurus and mentors never win.

Most of the forex advice just mentioned, is poor and even the minority which is good, a trader who doesn’t understand the markets will never have the discipline to follow it.

You must accept success is on your shoulders and comes from within – NOT someone else!

You must understand what you are doing and why it will be successful and this point cannot be stressed enough.

Getting a Simple System For Huge Profits

Any currency trading system that is successful is simple!

Many traders think the more complicated they make their system, the better the chances of it being successful – but this is simply not true.

Simple systems work best and always have as they have fewer elements to break in the volatile and brutal world of currency trading.

A simple long term breakout system, with a few confirming momentum indicators, is all you need and we have covered how to build one in simple steps in our other articles, so look them up.

Why Anyone Can Win

Its because currency trading is a learned skill – you just need to work smart and learn the right forex education and have the right mindset and now I want to tell you a story to inspire you…

Richard Dennis decided to prove anyone could learn to trade so he picked a group of people of all ages, both sexes and of varying levels of intelligence. The varied in occupation from a security guard to an actor and Dennis set about teaching them.

In 14 days they had completed their trading education and went on to trade, they quickly went on to make $100 million dollars and go down as trading legends.

So why did this group do so well?

They had a good teacher for sure – but he only taught them a simple trading system.

The key element he gave them was the confidence and discipline to apply it for themselves and in later interviews, many of the traders said:

Learning the system was the easy bit – remaining disciplined was hard.

So get a simple system you understand and the chances are, you will be able to maintain discipline and go onto achieve currency trading success.

Anyone can win at currency trading and the real lesson to take from this currency trading tutorial is:

That the market doesn’t beat the trader, the trader beats himself.

So work smart, have the right mindset and you could be making a great second income, or even get on the road to financial freedom and remember – success can be yours if you understand the points in this article.

NEW! 2 X FREE ESSENTIAL TRADER PDFS + ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s and more on FREE Currency Trading Advice and an exclusive risk free course and Currency Trading Tutorial visit our website.

Number of oil rich countries are small states located around the Persian Gulf. Outside of crude production, their economies are not large, in line with small populations. This countries formed a Gulf Cooperation Council, both economic and, to a lesser degree, military organization. Saudi Arabia is the largest member state, with Kuwait, Qatar, Bahrain, United Arab Emirates and Oman making the list. Yemen is a pending member.

Since oil is priced in US dollars, respective currencies of the member states have been pegged to dollar. Over last few years this arrangement created certain problems for the Council states: very high crude prices and weak dollar caused huge inflation pressures. In spite of that, central banks had to lower rates in line with FED, due to dollar pegs, furthering inflationary threats. For example, Qatar’s inflation exceeded 13% in 2007. Not a welcome development.

After years of discussions and planning, central banks of Gulf Cooperation Council,
have approved a draft of a charter for a central monetary authority. This agreement moved the group closer toward a goal of establishing a single currency for the member states. The launch of the new currency is set for 2010, but most experts expect it to be delayed. In project of this complexity and scope working out all the issues almost always takes longer than expected. We all remember Euro.

For example, Kuwait severed its dollar link last year and started tracking its dinar against a basket of currencies to help ease inflation that was driven in part by higher import costs – a decision that could be a major obstacle to reaching the 2010 target date for monetary union. Kuwait has not disclosed composition of the currency basket used for the new peg. Every member would also have to cap inflation within certain range, before the the union can proceed.

Despite set backs like this, at a recent meeting in Qatar, central bank governors reaffirmed the aim of monetary union in 2010 as Gulf states sought to avert additional unilateral decisions on currency policy that could jeopardize the project. Gulf Cooperation Council countries would “push ahead with the implementation of single currency on time”, stated one official.

Once the new currency is introduced, it would likely become available for trading very quickly. Most brokers would like to capitalize on the initial interest as soon as possible. Cost of trading would be another story, however, with rich spread and some illiquid time periods throughout the trading day. Nonetheless, it is certain there are scores of traders eagerly awaiting this yet unnamed currency.

Gulf Cooperation Council members believe that new monetary union will help curb inflation. Among many other stated benefits are increased economic cooperation in the region, easy in money and goods flow. Single currency should also place Persian Gulf States in better position in increasingly border less world economy. And perhaps help them to prepare them for the next big step – life after oil.

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on http://www.spectrumforex.com Spectrum Forex LLC offers numerous services to individual traders. With questions and comments e-mail him at kulej@spectrumforex.com

Over 40% of the water is lost in Mexico City due to poor infrastructure, unauthorized hook ups and theft. Additionally, undeclared wells are a huge challenge. In Mexico City there are 660 declared wells and perhaps five times that many non-declared. Mexico City is sinking due to the ground water being pumped out faster than it recharges by a factor of 2:1, meanwhile the soil consists of clay and is a dangerous situation during drastic changes in hydrology.

To make it worse, millions of people living in slums without water and many that live on the far side of town where any water coming through is highly polluted. Mexico City is said to have some 20-million inhabitants, but the real number could be as high as 25-million now. The officials have no idea what to do if there is an earthquake, the water system will be severely crippled, perhaps beyond repair, as if it is in a state of repair anyway.

Many of Mexico City’s rivers and streams double as wastewater removal canals, it is quite disgusting and very dangerous for human Health for those who live downstream. It also challenges the quality of the underground aquifers and ground water, and without that or even with that, Mexico City is sunk.

There appears to be deep water aquifers at more than 300-yard below the surface, but it costs a lot to make wells that deep and takes a bit of energy to run the pumps, making such options economically non-viable. Other potential water sources to fill the gaps would require bring water over the mountains into Mexico City which sits in a valley, which was once a lake. And folks this is just one major urban area in the World at a pivotal point, and on the verge of complete chaos.

“Lance Winslow” – Online Blog Content Service. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.

I will win at forex trading because: I have a trading edge which is (Defined)

Now a trading edge is something that separates you from the majority of losers and a trading edge is NOT any of these!

- I am following a guru blindly

- I have bought a system that can predict tops and bottoms in advance

- I have a successful day trading system (a contradiction in terms!)

- I am trading news stories

- I trade by my gut instinct

The above are common answers and there all guaranteed to lose you money.

Most people approach forex trading like it’s a walk in the park and its not – that’s why the rewards are so high and so many people lose.

Listen to what I say, because I am not a self proclaimed expert telling you its easy and if your serious about forex trading your wouldn’t expect it to be, there is big money at stake!

The good news is…

Everything about currency trading can be learned by those willing to get the right forex education and who have a desire to succeed.

In fact, if you can get the right forex education and forex trading system the money that can be made is life changing.

It doesn’t matter what your edge is, so long as you know it, it’s based on sound logic, you are confident in it and have tested it.

Mine for example is:

Hitting contrary trades hard by using 3 indicators to spot the set up and two to time entry and hitting them hard even though I am going against the herd.

Yours maybe something else – it doesn’t matter, so long as you know that it will help you beat the losing majority.

A trading edge is a combination of learning, understanding and confidence that leads to discipline to execute your system.

Unless you have confidence and discipline in your forex trading system, you won’t be able to execute it and you may as well not have a system at all.

A trading edge is an acceptance of responsibility for your own destiny and working smart to get a system you know will win.

If you like to follow and blame others do something else.

If you don’t like taking calculated risks or being wrong then again go and do something else.

Forex trading is not for cry babies, it’s a big boys (or girls!) game, where you need to accept the responsibility for your destiny and the challenge.

A trading edge can as we have said earlier be acquired by anyone – if you have the desire to succeed and a willingness to learn, you can be a winner to.

The markets are unforgiving and brutal – they can only be right and you can only ever be wrong – but that doesn’t mean you can’t get an edge and win.

You can …

When you trade the markets you must understand how to play the odds just like the successful card player.

You fold when the odds are against you and bet big when there in your favour.

Sure, you will have losers but if you trade with the odds and an edge, you can enjoy currency trading success and win at forex trading and in many instances, make gains that can be life changing.

The question is are you up for the challenge?

If so, welcome to the worlds most exciting and lucrative business!

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Scalping

Scalping is basically short period trading. These periods where a trader holds a position can vary from seconds to minutes. Scalping is effectively trading the minutest moves in the market for usually a small profit.

To give an example a leveraged trading account with 100,000 EUR/USD position will earn/lose $10 per pip movement. That means a small 3 pip movement either way will add $30 to or lose $30 of the traders deposit.

Even though effective scalping involves highly leveraged positions the exposure to risk is lessened to some degree by the amount of ‘time’ that a trader holds his/her position so large movements are rarer (but beware can occur).

Scalping is a popular method of trading practiced by ‘newbies’ thrilled with the cat and mouse game of the market and some traders make a good living out of it but most traders, in fact close to 90% either break even or lose their deposits.

An added factor to consider is that brokerage houses do not like scalpers. Why? The reason is simple. When a position is taken by a trader the broker has the opposite position and needs to cover that position especially if the broker feels that the traders position is the right one for market conditions. If the broker then covers that position and a few seconds/minutes later the position is squared then the broker has a currency exposure and brokers are companies that generally don’t like exposure. Most make their money on spreads and trading against their clients positions. Those scalpers that make money consistently find that most brokerage houses terminate their accounts. That doesn’t mean to say that it will happen immediately but when a trading pattern does arise of scalping don’t be surprised if your broker ‘divorces’ you!

Day Trading

Day trading is not really referring to the holding of positions by traders for a day but is more descriptive of the type of forex trader that prefers to hold on to a position for a longer period of time than a few minutes at most. These positions usually last for more than an hour, few hours and in some cases days.

A day trader is a ‘different animal’ to the scalper in that he/she is more comfortable with exposure to the risk of larger currency fluctuations. It’s not because they have fatter wallets it’s usually down to having more experience and a different trading temperament.

The profit motive for a day trader is also different. A day trader will look for larger moves within a single trade and be aware of and use for example greater technical analysis to calculate the best entry and exit levels.

Brokers tend to prefer these traders as they can do two things, firstly trade against their client by covering their exposure and go the other way if they have an opposing view or square (net out) the position.

Again there are a lot of losers in the day trade market due primarily to inexperience and a ‘gambling’ mentality that many participants in the forex market have.

The people who consistently make profits understand the market through experience of trading and knowledge acquired and are persistent and understand forex trading methods that are available and in what situations to use them.

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Peter Burke MBA has been writing Journals and Articles for academic publications for over 7 years and is Managing Director of a Consulting Company in the United Kingdom and has 15 years of trading experience.