In today forex faq, we have a question from one of our fellow traders asking me regarding is there any sure way to win at forex.
Below is the question
Hello Koon Hwee
I see you have several strategies or trading systems. What I want to know is what you think is the most easy and profitable.
The thing is I’m so tired of losses not know what to do. Is there any sure way to win at forex?
One thing I hate is to wait and wait for all the indicators are in agreement before starting a new investment.
Is there a more practical way to win at forex without losing much time in front of the screen burning eyes?
The ideal for me would be to get into a winning trend at any time. Is there any way to do this?
Really I need an extra income every month, I do not need too much.
I thank you in advance if you can help me win with ease.
I shall divide your question into 4 main sections for better explanation on each section.
Q1) You were asking me out of my 8 strategies that I am using to trade everyday, which one of it is the most easy and profitable to use.
First of all, I believe that most of you must be wondering why I need 8 strategies to trade and there are some of you who believe that a trader can be profitable simply with one strategy. I have posted an article on why I believe that anyone should have more than 1 strategy to be profitable every month.
Now back to answering your question. Out of the 8 strategies that I am using, the one that is most easy and profitable to use is the break the bands strategy. It is very simple to execute and that is why I place it as the first module of the Forex Street University course so that my students can start to make money from it once they finish the first module.
This strategy has a way to validate whether the setup is valid or not thus allowing us to avoid getting into more losing trades. Besides that, it has a good risk reward of 1:2 which makes it easy for anyone to be profitable every month.
Q2: In this question, you were asking me if there is any sure way to win in forex. Here in this post, I must be very frank to you, there is no way anyone can win 100% of the time in any sort of trading. What we traders should look for is a strategy to have a decent winning percentage of at least 70% and a high risk reward ratio.
If you ever encounter anyone telling you that they have a strategy that wins 100% of the time, then I will advice you to stay away from this scammer. My personal advice to you is to look for strategies that have a good winning percentage and risk reward and you will be sure that you will be profitable in trading every month. However if you are serious about making money from trading, you will have to accept that losing a few trades every month is simply part of the system.
Q3: Is there a more practical way to win at forex without losing much time in front of the screen burning eyes?
Yes, definitely there is a way to trade forex without losing much time in front of your computer. Trading forex is meant to give us freedom to do what we love. If we have to stuck to the computer all the time, it will be no difference from working on a job.
In order not to lose all your time on the computer looking at the chart, you must have strategies that are very reliable and have been tested over a period of time. For me, when I enter a trade, I will walked away from my computer. I can do this because I have been using those strategies for years and they have proven to make money for me month after month. That is why I feel very relax in trading.
I understand that there are a lot of new traders who get very anxious after getting into a trade. You will feel reluctant to move away from the screen as you are afraid that you get stopped out. This is very unhealthy way of trading and to me, the main reason why you feel this way is because you do not know the winning percentage of your strategy.
I am not saying that my strategy wins 100% of the time, however I know that it will produce more winning than losing trades and that is why I do not feel a thing when I get into a losing trade as I know that I will still be profitable at the end of the month.
The next thing you need is to have a strategy that have a very clear setup plan. You just need to glance at the computer and you will know if there is a trading opportunity. If there is, then you will have to be more alert. If there is no setup that can give you a trading opportunity, then you can walk away from your computer for some time before coming back to check again. This is why I can go for movies with my wife in the weekday afternoon as well as going for a vacation.
I just need to look at the computer for 5 minutes and I know whether there is a trading opportunity coming or not.
Q4: You were asking me whether there is anyway you can get into a winning trend.
Yes. Identifying a trend is only one part of the trading plan. Being able to identify a trend does not guarantee a win. For example, you know that the market is in an uptrend. Does it mean that you will make money if you enter a LONG trade now? No.
This is because the market is always moving in waves. Even if the market is in an uptrend at the moment but it will still produce retracement waves that will stopped you out when you enter a LONG trade.
In order for you to profit from the trend, you will need a very good entry point which is what your strategies have to tell you.
I hope that I have answered all your questions and from my experience, it seems that you do not have a working strategy on hand. You are simply trading with your eyes blindfold and you will never be able to make consistent profits if you continue in this way.
My personal advice to you is to put in time and effort to learn several reliable strategies before you trade live with your hard earned money.