Forex Trading System -4 Things I Learned From A Professional ...

One way to keep informed with the pulse of the market in between periods that you are not trading your trading is to hear from friends about their trading exploits, the amount of money they earned from their successful trades or listen to their sad tales of woe that came as they lost somewhat in their trades.

But it is as we study into their records, especially the more experienced ones who are consistently profitable, that we can learn how they actually trade.

So it was with a great degree of expectancy when my friend Mike, a forex trader who had begun to trade for about a year, but has consistently made profits from his trades, he told me of what had been trading these few days. Although he had been trading for only about a year, I knew he had not had a losing month, testifying to his consistency as a profitable trader.

These are his ?secrets? to his consistency that you might be interested to know of:

first Trade only the four major currency pairs

Mike revealed that he only trade the four major currency pairs. These are:

EURO / USD

USD / JPN,

GPB / USD

USD / CHF

By trading currency pairs only these four, he gets very familiar to the movement of these instruments, and can trade with confidence. This Allows him to stay focused, and to be able to take a loss when it comes Sun that he is able to keep his losses small, but let the profitable trades ride out their price movement as they go up in price. By concentrating on just 4 currency pairs, he was able to take action on any potential trading signal. He then traded

on a mini forex account.

2 Trade only using one trading system

Mike revealed that he had started off trading two trading systems, but after two weeks of testing with actual real money in the market, he found the trading system that was highly recommended to him to be less profitable Compared to a very simple price action method that he had learned. From that time onwards, he only trade to a system that he has proven to have worked for him, giving him confidence to pull the trigger at the next trading signal. Keeping to just one trading system that has proved to be accurate gave him strength to take the trades and to cut his losses short.

3rd Taking all the signals

Mike revealed he had taken on that day all the signals on the four currency pairs. The outcome was that 3 of his 4 trades ended up as losers, but because he had Carried out in a disciplined fashion his trades, the trades that lost money lost three very little. The sole trade that was a winner turned out to be a big winner, as he had allowed the trade to run up in price according to his trading signal generated. That win all the remaining three covered losses, and he ended up with a lot more profit as well.

Let us summarize what we have learned from Mike in the forex market trading his.

Firstly, Mike traded the 4 major currency pairs Exclusively, and so he is able to stay focused on these financial instruments and understand their price movement. Secondly, while trading on reduced risk with a mini forex account, Mike only uses a trading system that has been proven to be profitable to him. By doing so, he is able to maintain a sense of discipline in his trading. Finally, Mike take all the trading signals computed, but always taking quick action in response to signals generated. This normally Allows him to come out a winner despite having losses in some other trades because he always cut his losses almost.

id=?article-resource?> Need more information about forex trading To provide a consistent income? Discover for free how a professional trader creates his 5 figure income trading forex by using 3 powerful proven trading Price-Action trading strategies involving No-Indicators, and how you can personalize these same systems for your own use today. Create Massive Wealth Through Visit Forex Trading [http://1forex-trading.blogspot.com] or go to http:// forex-trading.cashflowpc.biz

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Source: http://www.lovefinanceinfo.com/2012/03/forex-trading-system-4-things-i-learned-from-a-professional-trader-who-trades-for-a-living/?utm_source=rss&utm_medium=rss&utm_campaign=forex-trading-system-4-things-i-learned-from-a-professional-trader-who-trades-for-a-living

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