Forex Trading - Why If You Try and Predict Your Guaranteed To Lose!

Forex Trading - Why If You Try and Predict Your Guaranteed To Lose!

By: monica hendrix

Many traders who trade forex markets think they need to predict what will happen to win but all this does is ensure they lose. 95% of forex traders lose and most try and predict forex prices so don’t join them.

You can win but you need to understand the fact below:

If you predict – you are hoping levels of support or resistance hold!

Now if you “hope” in any form of trading, kiss goodbye to your cash.

So how do you win? let’s find out.

Firstly, on the net you will see a lot of people saying their systems predict the future but this is marketing hype nothing more and never comes with any real track record to back up the claims.

These vendors will tell you markets move to a scientific formula, but of course this is not true – if it were:

We would all know the price in advance and there would be no market!

The fact that markets are unpredictable and based upon opinions makes a market move.

So first get out of your head all those scientific ideas that the far out crowd like to go on about like:

Elliot wave, Gann and Fibonacci numbers, cycles etc - they don’t work and if they did the person who discovered them, would be to busy making money to bother you.

The key to market success is to see trading as an odds game - similar to blackjack.

The successful blackjack player knows that if he plays when the odds are in his favour and increases his bet size accordingly when the right conditions present themselves he will lose some hands but over time he will win and win big.

It’s no coincidence that some of the top traders in the world came from the world of poker and blackjack – their success is simply down to playing the odds.

How Do You Get The Odds In Your Favour?

Its simple don’t predict or hope or predict trade with price momentum.

For example, if prices move toward support don’t hope it will hold – wait.

Look for price momentum to turn up above the level and trade with it.

There are two great indicators for measuring price momentum so learn them - there the stochastic and RSI and their covered in our other articles.

If you wait for price momentum to turn in your favour the odds go up dramatically in your favour and you can get the odds on your side.

Trading is an odds game and don’t let anyone tell you otherwise.

Good luck and good trading!

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