It’s either you have a consistently profitable trading system or you stop trading and find one. It won’t matter how much money, time, and undivided attention you pour into your trading business. If you don’t have a winning system, you won’t succeed. Here’s the truth about how to find the most profitable forex trading system.
Another problem with finding a profitable trading system is the fact that a lot of novice traders think of it as a quest for the Holy Grail. Believing that there is one specific system that will win all the time is detrimental to both your professional growth and your trading capital.
Last but not least, most people abandon their trading system after a couple of weeks or months. They start out with such high hopes for a newly constructed or adopted strategy. Then, after a few strings of losses, they give up and look for another system that will hopefully take their capital to an all-time high.
The Reality to Finding a Profitable Trading System
If you want to succeed in Forex trading, you have to acknowledge the fact that you will lose from time to time. The idea is to have larger gains than losses. A system with a 50 percent chance of being correct each trade plus a 2:1 reward/risk ratio is already a decent system despite only being a 50 percent chance winner.
Tips to Finding the Right System
Identify all factors you are in control of. This includes how much capital you have to invest in the trading business, what time frames you can trade based on your personal and work schedules, how much risk you can tolerate, and your psychology towards trading.
Once you’ve identified them, dip your feet in the market. There is no better way to find a good trading system than to build one from scratch and perhaps no better teacher than firsthand experience. Try your system with a demo account first, then move to a mini account and then a standard account over time.
When learning how to find the most profitable forex trading system, it all comes down to patience and discipline. Even with a promising system, traders continue to lose money because they can’t fully comply with the parameters set by their system.