Before we get to talking about forex signals, let’s understand what it takes to become successful at trading. Successful trading involves three equally important factors:
· A profitable Edge
· Money management
A profitable edge means simply having a strategy that gives you a higher than 50-50 chance of making money in the market. It could be based on technical, fundamental, or technical analysis. What it’s based on doesn’t matter. What matters is that it works and it is simple enough to follow. You might need to back-test the strategy to ensure that it has a statistically significant edge.
Once you have a strategy in place you need to have the requisite money management skills. In trading it’s as simple as making more than you lose. Keep your losses small and keep your wins Big. That way it doesn’t matter if you’re winning only 40% of your trades or 80%. As long as your wins overall are greater than your losses, you’re going to be making money.
Finally, you need discipline you might have the best strategy in the world and all the money management knowledge you will ever need. However, if you don’t have the discipline to stick to your plan, then you’re going to lose money. And you’re going to lose it fast.