The best forex trader.
The best forex trader software system is a dime a dozen. There are literally hundreds of them to choose from. Some claim to have the best indicators while others brag about their winning rates. However, what is the one thing that is consistent among all these systems? That's right; it is the fact that most of them don't work!
A well known figure in the Forex community is that 90 percent of successful Forex traders end up failing. Some books quote failure rates as high as 98%. Despite the high number, even with having exchanged hundreds of trades over the past years, I can tell you that these figures are not very far off. This then begs the question, how can you identify which of the many Forex trader systems out there are the best?
The simple answer would be to try them all. If you have traded in the past and have had some successes, then by all means continue trading that particular system. The reason for this however, is that since there are so many of them, each system has been tried and tested on a number of clients. This gives the average person an advantage over them, because they will already have had some success using said trading system. Therefore, they know which strategies work and which don't.
There are however, other things you can look for in a trading strategy to ensure that it will be effective when used in conjunction with the right software. The first thing you should test is your ability to interpret trends. The best traders are also the most adept at interpreting price action. Therefore, it would only make sense that if the price action is your forte, then you should be looking for a system that enables you to do the same.
A good place to start your research would be to look at how experienced traders interpret price action. The best traders are able to identify strong trends, support and resistance levels, breakouts and trend reversals within the market. Once you understand the basics of price action, you should begin looking at a number of different Forex trading strategies. Some traders prefer to use more than one strategy at a time in order to learn each one's strengths and weaknesses, thus making them more effective and reliable in executing trades.
The best traders know when to walk away from a trade. Those who continue on regardless of the consequences aren't actually doing very well. They are the ones who take a very active role in their trading. However, many traders are either too comfortable staying in and watching the prices go up or down, or they are not willing to risk it and pick up and leave when they see no clear direction in which the market is moving. While there are certainly times when it can be very profitable to buy and hold, this isn't always the case. When you are consistently losing money, it is a sign that you might be better off going out and finding another approach to trading Forex.
The best Forex trader is one who knows when to quit. If you don't have the discipline to follow through with your trading decisions after you have made them, then you shouldn't even be in the industry. Many successful traders have continued to make money long after they thought they would no longer have a chance in the highly volatile and leveraged environment of Forex trading. It takes discipline to stay in a losing position, but it also takes a strong will to ride out any waves or temporary market losses to maximize your profits. Many people give up on Forex trading because they are afraid to lose money, or they are too worried about executing a single trade and end up being convinced they can never make any money trading. Both of these fears can paralyze a trader and prevent them from ever breaking even.
The best Forex trader isn't someone who has a great looking website with fancy-but-empty words that say they can instruct others to trade the same way they are doing. It isn't even a person who is really motivated to become a successful trader. The best Forex trader is an ordinary person, someone who goes into the market at the end of each day with the same goal in mind: to have a profitable day. And if they do, they probably have an extremely high success rate.