Here we are going to look at three popular Forex trading strategies which the bulk of all new traders use and they are all doomed to failure so make sure you avoid them or you will lose to, here they are.
Let's take a look at all strategies which involve making no effort and buying the vast amount of Forex Robots and Expert Advisors.
1. Automated Predictive Software
How many cheap hundred dollar systems do you see online which tell you they can make you an income for life with no effort, because they have software that predicts the future? There are loads of them, they all lose and there predictions, always turn out as accurate as your horoscope.
You cannot predict markets in advance because humans are not predictable!
People are creatures of emotion and not logical, if you could predict the future there would be no market, as we would all know the price in advance. Avoid these cheap get rich quick systems, you don't win in a market were 95% of traders lose by making no effort and spending the cost of a good night out.
2. Any Forex Scalping or Day Trading Strategy
Any system based on the above will lose long term - think about what you have to to win:
You have to decide what countless millions of traders will do in advance, all with different skills, aims objectives and emotional make up and to make it even harder you have to decide what they will do in a few minutes or hours.
All volatility in short term time frames is random therefore, you cannot get the odds on your side and you can't win. Avoid these short term trading strategies.
3. Fibonacci Systems
This has to be one of the most amusing and dumb ways to trade Forex, this is no disrespect to Fibonacci but even he would be surprised how his theory has been hijacked by the far out investment crowd.
This theory had nothing to do with Forex and traders who trade it, give you mystical retracements you can buy into where prices are supposed to hold to some universal law - so do they work?
Sometimes but so will any percentage retracement. This theory is supposed to have found the hidden order of the universe but it hasn't quite figured it out in Forex! Do not be taken in by people selling you systems, based upon this theory.
If you want to Win at Forex
Get a simple Forex trading strategy, based upon trading the odds which doesn't predict but executes its trades on the reality of price change and you can enjoy long term currency trading success.
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