If you want to make money in forex trading you need to have a soundly based forex trading strategy. This is far easier to achieve than many traders think it is and here we will show you how to build one in 4 simple steps.

1. Success Comes From Inner Understanding

To succeed at forex trading you need to do it on your own and understand EXACTLY how and why your system works.

Even if you follow a vendor or someone else’s currency trading system, you can’t simply follow it you must learn it and have confidence in it.

If you don’t understand how your trading system will help you succeed, you won’t have confidence in it which will lead to a break down of discipline if you hit a losing period.

Keep in mind if you don’t have the discipline to follow your trading method, you don’t have a method!

2. Keep It Simple & Work Smart

Many traders believe the more effort they put into their forex trading strategy the more they will make – this is not true. You get rewarded for being right with your trading signal and that’s it.

Other traders think the more complicated their system is the more chance it has of succeeding but again – this is not true.

All the best forex trading systems are simple and this means they have fewer elements to break and are more robust in the face of brutal market conditions.

This is actually good news, as you need to work smart and not hard to succeed.

Simply focus on the right areas and learn them. If you do this, it will lead you to currency trading success.

3. A Successful Trading System

Here we can’t give you all that goes into a successful trading system – but we will give you some important basic elements you need to keep in mind when building one.

- Do not day trade, as you are guaranteed to lose. All short term volatility is random and you cannot get the odds on your side, either swing trade or follow long term trends.

- Base your system on the concept of support and resistance and breakout methodology.

- Do not predict with your system. Use momentum oscillators to confirm each and every trading signal.

If you predict that’s simply hoping or guessing and you won’t win.

Trade the truth of price action and confirm.

- Always place stops and assume the worst eventuality – you need to protect what you have above all else. As one trader I once knew said:

“If you take care of the losses the profits will look after themselves”.

4. The crucial Point You Need to Understand!

In forex trading 95% of traders lose.

This is simply in most instances down to the fact they don’t work smart and learn the right information.

They therefore don’t have confidence to apply their system with discipline.

You need to understand as part of your forex education that your method is important – but you need the right mindset to apply it.

If you want to learn currency trading you can, in fact anyone can – but you must learn how to trade currencies the right way and build a logical, simple forex trading strategy which, takes into account all the points we have made above.

There are many forex day trading strategies and systems you can see promoted or for sale online – but which are the best? Let’s find out…

The answer is any forex day trading strategy you try won’t work because day trading and scalping by its very nature is doomed to failure – Why?

It’s simple really if you think about it.

You have to decide in a matter of hours or minutes, what a vast diverse group of traders are going to do and this group is countless millions.

Chaos in the Short Term

They all have different aims, educational levels, some are hedging some speculating, there are long term trend followers, swing traders and day traders and many are governed by their emotions, with greed and fear to the fore, so how on earth can you predict what they will do in short time spans?

You can’t! All short term volatility is random and you have no way of getting the odds on your side and you will lose.

What About the Profitable Track Records You See From Vendors?

You may see track records of profits but they are not quite what they seem.

Hunt around for the disclaimer on any of the forex day trading strategies you see sold online and you will see the worlds “hypothetical”, “simulated” and “back tested” written in the small print.

This means done on paper, not in real time! So these track records count for nothing, there simply made up.

Can You Make Money with any Short Term Trading?

Yes you can and rather than think forex day trading strategies think – forex swing trading strategies. Swing trading looks at longer time frames, normally a few days to a week and here you can get the odds on your side and that means you can win.

It’s still short term trading- but the data is valid and you can calculate the odds which is impossible in day trading.

If you like the idea of trading short term this is the way to go.

You can put together a robust swing trading strategy quickly and be making big profits in less than 30 minutes per day.

So don’t believe the hype about forex day trading strategies, go for a short term trading strategy that works forex swing trading.

You can avoid an inevitable loss and get on the road to currency trading success.

By: Kelly Price