In certain ways, many forex traders are like video game fans. They love seeing what technology has ahead for them. Just as video game fans stand in 10 hour lines to get the next gen consoles, many traders react similarly to when new forex trading platforms come out. My question is why??? Don’t get me wrong. I can appreciate the benefits of technology as much as anybody else, but I don’t get what all the big fuss is about. The real truth is that there is no best trading platform on the market.
I suppose I am old fashioned but I believe the trader is what makes money, not the equipment. Now, I know a lot of fans of eSignal and TradeStation would beg to differ with that statement, and their certainly entitled to. But my philosophy is, either you know and understand the markets or you don’t. No thousand dollar platform is going to be able to do that for you.
As traders, we’ve been told that we need all these bells and whistles in order to be successful at trading. There is a reason for it. The forex software market is almost as big as the forex market.
The past few months have seen some once-in-a-lifetime trading opportunities come and go. If you have been asking yourself, “why aren’t my profits as good as they should be?” more often than you like this year, you probably need to step back and take a good look at your trading behavior.
The vast majority of people who try to make money in the markets end up losing more money than they make. You do not have to be one of the herd stampeding towards financial disaster. You can be one of the top five percent of investors and traders who make consistent profits in the markets month in and month out.
The mistakes traders make can be categorized into a handful of slots, but it is very difficult for you to assess your own performance objectively. So, it is a good idea to take some time away from the markets if you have been performing badly. Take time to read everything you can get your hands on about trading systems and trading psychology. Then make an objective assessment of what you need to do to turn your trading results around.
You can make money in the markets if you do all of the following things, and do them consistently: First, you have to have a trading system that is able to make profits under all kinds of market conditions. Second, you have to trade according to your system.
Trading profitably really is that simple. But, it can be the most difficult thing you ever accomplish.
One of the hardest things is being totally objective about your investing results. If you can’t admit that you are doing things wrong, or if you can’t recognize that your particular system has serious flaws, then you need to get someone on the outside of your own head to help you along.
If people realized that all the information they need is on a basic price chart, all these companies would be out of business.
You can have the highest state of the art technology by your side while you are trading, but if it doesn’t amount to anything, then all you have is a thousand dollar excuse to lose money.
John Templeton has been a successful forex trader after learning how to trade price action
Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.
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