The Forex Holy Grail… Is It real?
Like always, I want to debunk any myths you might believe about profitable Forex trading.
I will start by saying No! A holy grail does not exist the way most people think. There is no strategy that doesn’t take a loss or have a losing streak every now and then.
There is, however, a strategy that you have to FIND (If you haven’t bought a course and you don’t have a mentor) that makes money in the markets.
The (sort of) Holy Grail
Ask any profitable trader that has had to come up with their own Forex trading system.
This thing is a game of trial and error. Shooting in the dark until something sticks most times. You might recognize a pattern in the forex market that you think could be a profitable one, a potential holy grail.
The FIRST STEP is to back-test it. Would this pattern have made money in the past?
If so, does it make money NOW? Which is obviously more important. You forward-test it and analyze your results.
Most times, they will be underwhelming. Either the pattern makes a little money or makes no money at all. Don’t get discouraged if it doesn’t make any money.
The Forex market is sophisticated, and it might take time to find an EDGE in it.
If it does make a little money, though. I suggest you work on it a bit first before throwing it away.
Go back again and see what things you could’ve done to minimize losses and increase the size of your wins. Tinker with your entry and exit signals and see if you couldn’t have traded the pattern better.
If you can, great! If not, then maybe it’s time to move on. This will sound familiar to people who have been told that there is no holy grail before.
Yes! There is no holy grail, so do not throw away a reasonably profitable strategy hoping to find a perfect one, but you do have to search for some sort of grail to drink your pips from.
A system that makes the kind of return you can be satisfied with
Stay away from Perfectionism
After all, you trade the Forex markets to make money, not to prove anybody who has the best returns or makes money the quickest.
Aim to make money consistently. If and When you get there, you will have done better than 95% of people who ever click a buy button in the Forex market.
Pat yourself on the back and then continue to refine your winning strategy until you find its most profitable form. At that point, no one can blame you for seeking new uncharted territory. Excuse the pun.
Then you end up with a completely different system. Try to fight the urge to be right all the time.
If people just focused on Risk to Reward, they would realize that it’s much easier to get BIGGER winners in the Forex market than it is to get MORE winners.
It’s possible, don’t get me wrong, it’s just much harder. Learning how to trade the Forex market profitably is already hard enough as is. Why add more weights on the bar?
Ways to find your Forex Holy Grail
If you know nothing about anything. Then start here on this very website and visit others as well.
Watch online videos and see how other traders are trading. Read Books like “Naked Forex” or “The Turtle Trader” to give you some insight into the kind of strategies that the authors have found profit with.
Don’t be shy to ask for help either. If you know a friend or a friend of a friend who you think can help you find your way.
ASK! You have nothing to lose.
Put in the Chart time. Look at these charts that you are so eager to make money from.
Look at different pairs and just try to recognize patterns in the forex market. Look at swing points where price moves decisively from.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.