Key to Winning At Forex

I have come to the conclusion over the past couple of weeks, that the key difference between being profitable at forex trading and being unprofitable, is a mental one.

There are so many systems posted at forums like ForexFactory and yet, there are endless threads of ppl trying to tweak these apparently-successful systems. Trying to "optimize" them, trying to reduce the losses or drawdowns, trying to backtest the hell out of them. Trying, indeed, to make the Holy Grail as they perceive it - the perfect combination of indicators that leads to profits nirvana.

I have not investigated any of these systems in depth but it appears that *some* ppl can make good money using them.

I cite in particular the Hans123 system, the SRDC Method, the James16 method, and Vegas Wealth Builder. A cursory glance at the threads indicates that some ppl are making money using these strategies.

Now, if *some* ppl can make a lot of money using these systems, and *some* ppl continue to struggle and lose, then the only difference explainable is the trader himself.

If the system works for other ppl but not *for you* then the fault is *you*.


And I recommend you get your hands on the Mark Douglas books and the Van Tharp books, and any other trading-psychology books that you can find. ASAP.


I have come a really long way in the past year. A year ago I was shell-shocked, having lost 60% of my account in just a few short weeks. I had gone from uber-confident to cringing in fear. I really f*ed up bad, in other words.

And that was actually not the first time in my "trading career" that I have been in that position.

In the late 90s I traded tech stocks, options and IPOs. Made a bunch of money in a short period of time, thought I was a genius. Turns out I (along with a lot of other ppl) couldnt tell the difference between being a talented trader and a tech bubble. *pop!*

In early 2000-2001, I was trading futures. Found myself a *guru* and hung on his every word. This time I thought *he* was a genius and I was just incredibly lucky to be a groupie. Of course, his "fail-proof" system was anything but, and I found myself staring at an empty trading account.

Then in 2004, I fell into a carry trade, although I didnt know what it was at the time. And over the next year I learned what the carry trade was, and of course I had to learn the hard way what "unhedged" meant.....

which brings me back to my big loss of Dec 2005/Jan 2006.

And my slow-but-steady education throughout 2006, to get to this point, January 2007, where I finally feel confident that I really *know* what I am doing.

I think I am finally to the point, where I will never again find myself lying flat on my back, looking at my empty account, saying "what the F* just happened??!"

And with that knowledge comes the conviction that "the system" is only a small factor in the equation ... the biggest part of being a consistenly successful trader is NOT which system we use.

It is how *well* we use the system.