Surefire Strategy For Losing Money In Forex

When it comes to forex trading, here is a trading strategy that is bound to lose you a lot of money in no time: the "Go-with-your-gut" strategy...unless your gut is highly trained and impervious to emotion. The trick to making money in the currency exchange market is to avoid making any emotional decisions and follow a carefully thought out strategy that takes the current market and history into account.



Forex trading is a highly volatile market. Emotions tend to run high – and low – and either of those extremes can influence your trading decisions, unless you have a strategy planned in advance, and stick to it, no matter what you THINK you’re seeing at the moment. The keys to success in Forex are system, analysis and perseverance. Note that emotion is not one of them. Going with your gut is a losing proposition in forex trading.

Letting your emotions rule your decisions can hurt your trading in several different ways. It’s the reason that most experienced traders tell novice traders that they need to develop a system – and stick to it no matter what. The system tells you when to buy, what to buy, when to trade and what to trade for. By sticking to your system even when you want to fly in the face of accumulated data, you’ll maximize your profits.