In the Film “Dirty Harry” starring Clint Eastwood, the character Dirty Harry has a villain in the sights of his famous magnum hand gun.A few inches away from the villains hand is the villains gun.It’s a tense moment in the film while the villain decides whether to go for his gun on the assumption that Dirty Harry’s gun is empty - or to surrender.Dirty Harry then utters the immortal line “Are you feeling lucky punk, well are you?”Of course, Dirty Harry knows that he [Dirty Harry] has an extremely high probability of a successful outcome to this encounter.A common thread amongst many novice (and some not so novice) traders is that have been placing trade after trade and at the end of the day/week/month they are not doing as well as they expected.Does this ring a bell?One of the greatest myths in trading is that an “active” trader is one who spends their entire trading day placing trade after trade.Some even believe that the “active” trader places trades on several different currency pairs simultaneously and as soon as one trade closes they open another.Many novice traders spend their whole time looking for trading opportunities and become very dismayed if they cannot find one - believing that the market should somehow provide the ideal opportunity for them whenever they desire to trade.These are the very myths and miscomprehensions that cause many novice traders to produce poorer results than they would have wished for.In truth, the active and successful traders are the ones who spend their trading time studying the charts, assessing the possible impact of pending news releases and watching for all of their indicators to move into perfect harmony.Then they start looking for reasons NOT to trade.Yes, I’ll say that again - They start looking for reasons NOT to place a trade!If after looking for reasons NOT to place the trade, they cannot find any, then they know that this will be a high probability of success trade.Then, and only then, they enter that trade. Successful active traders understand that opportunities need to be watched and waited for.They understand that great opportunities regularly come along, they just need to be ready to take advantage of them when the time is right.Successful traders know that they cannot force the pace - the market dictates and they respond, but they only respond when the conditions are as near perfect as can be expected in the forex market.Does this take a lot of self discipline and self control? Yes.Does it make a lot of difference to their overall trading performance? You bet it does.Next time you believe that you are ready to place a trade, try looking for reasons NOT to place that trade. You will be amazed at the difference that this procedure will make to your trading.In future, before you pull the trigger, you need to have the assurance of knowing that you have the highest probability of success - just like Dirty Harry had - and to not be asking yourself “am I feeling lucky punk, well am I!!!”—Martin Bottomley is a full time professional forex trader, acknowledged author, forex tutor and co-developer of forex trading software including The Amazing Stealth Forex Trading system.
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The forex currency exchange market has become one of the fastest growing industries on the internet today. The secret’s out and more and more people are making money on foreign currency trading as retail forex traders and these are people like you and me. Average people with computers, internet connections and a currency trading account can start trading forex immediately. This opens up a whole new opportunity for the average Joe investor and the advent of the internet into all our homes has given us a currency trading platform. For small investors, currency exchange trading has become a very lucrative source of income and everybody is trying to get in on the action.Before you get started, you need to learn and understand what foreign currency trading is and how it works. There’s lots of information out there to help you learn this business, but remember that much of this supposed information and free forex trading strategy advise can be misleading. But don’t let this keep you from seeking real, quality forex education, because this will be critical to your success as a forex trader. Another piece of advice that you should remember is to start small. You can always start out by trading a demo account from your broker that allows you to use fake money with real charts and tools. That way you risk none of your money while you’re learning how to trade. If you do well as a forex trader, you can move on to trading a real money account. As you get better at trading, increase your budget slowly, and make certain you don’t over leverage your account and blow your money. Money management is very important in this business so make sure you have a good balance between your risk/reward.Also, find good forex training courses and resources in foreign currency trading. There are plenty of these resources online or find out where you can attend workshops in your local area. There are also online workshops where you can trade along live with professional traders to see how they analyze the market and execute trades. You not only can make profit while trading with professional traders, but you will be learning a life long skill you can use to trade on your own one day without having to rely on services like these. You can ask questions, which will be answered by experts on live chat, message boards and forums. There are courses on forex currency trading that give you instant access to their library where you can see historical trends and all types of useful literature. Professional forex traders run these forex training courses and offer videos with their own forex trading systems explained in detail.Many of these currency experts have written a number of books on the subject, so try and look for one that is authored by a well-known currency exchange trader, or someone with reliable credentials instead of a self proclaimed guru with no background on the subject. Anyone can claim to have made a fortune but trust only someone who has traded professionally for a number of years with a large financial company or someone newspapers and magazines cite in their articles. The more you research this business, you’ll start to see the same names. Write these down and research them further. You’ll quickly formulate a list of forex trading gurus and find the services they offer so you can trade along with them.There are a number of forex brokers, both smaller firms and large companies, who offer basic forex training when you register with their service. If you’re new to forex currency trading, this can be quite useful. Most forex broking firm have their own charting platform and tools that will teach you to trade and allow you to trade directly from their trading platform. As we mentioned earlier, you can practice your forex currency trading without using real money by demo trading. When you’re ready, you can use your real cash and start generating an income from your trading. It’s very advisable to combine some of your own reading and forex training with some amount of experience of forex trading platform.Finally, if you’re extremely risk averse and would rather not trade yourself, many forex brokerages offer managed accounts. You simply sign the appropriate paperwork and add money to your trading account. The brokers professional forex traders will manage your trades for you while you watch your account balance grow. You will pay a fee for this service and it can be as high as 25%, but if they’re making you money, it doesn’t matter. They’re in this business to make money too, so it’s a win-win for you and the forex account manager.—Andrew Daigle has created many successful websites including ForexBoost, a free Forex trading educational site to learn Forex trading strategies and a Free Forex Training blog for keeping online Forex trading records.
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