I spent countless hours trying different trading systems when I was a beginner in Forex. I used to jump form one trading system to another as soon as it gave me a couple of losing trades. Are you familiar with this situation? I was always asking the question which trading system is profitable? Which one can I use to become successful?
I believe the right Forex trading system and one that will make you profitable is the one that suits your trading style and psychology. In my opinion many people nowadays are too impatient. Everyone wants to get as much as possible in the shortest amount of time. That’s why so many people fail in trading Forex. Patience is the key for successful trading currencies.
When I made my first trade I thought that once I executed a trade price should go straight to the profit level. All those fluctuations of price made me agonize watching how market went against my position. That kind of emotions made me susceptible to errors. I either got out too soon or moved my stop loss order hoping that market will come back.
Now I know that as long as a trading system has a positive mathematical expectation anyone can make profit with it. I mean anyone who has discipline and patience to follow through the system exactly without deviation.
I always here traders discuss which trading style is better. Is long-term swing trading better or very short-term scalping technique is better? I believe that it all depends on personal traits. If someone has a great control over his emotions then to trade short term may be the best choice for him. Someone who has more patience and can wait a few days for a trade to mature will be more profitable with long-term trading such as swing trading.
Personally I don’t like short term trading style, especially scalping. In scalping you target something around 10 pips and make many trades during the day. The problem is that for each trade execution there is a spread – difference between buy and sell prices that goes to a broker. So by making several trades a day you are losing quite a large number of pips.
On the other hand longer-term trades have much larger profit targets in some cases well over a hundred pips. A longer-term trader pays the spreads only once to have that profit. So personally for me it’s much easier to take a trade that can last a few days and bring me a large profit entering market only once.
At the end you are the one who decides if a Forex trading system suits you the best. You need to study yourself and not only the market. Once you find your preferences then becoming a profitable trader will not be a big deal for you.