Is there an immutable secret to trading the Forex that only a select few are privy to?  Is there something that successful Forex traders are doing that you and I are simply not aware of?  Have we missed out on some elusive trickor “hidden practice” to trading privy only to a fortunate few?

The answer to this question is . . . Undoubtedly Yes!

Let’s explore this by looking a couple of apparent paradoxes.

The Paradox of the Successful Currency Trader

Consider the following two seemingly irresolvable paradoxes.

Paradox 1:

Put two novice traders in front of a high probability trade set up at any given moment in time for a particular currency pair and give them each a tried and tested Forex strategy to work with.  Put each of them on opposite sides of the trade – one will buy the currency and one will sell.  What is the likely result?  Easy!  One will win and one will lose, right?

WRONG.  More often then not, they will both end up losing money on the trade.  Yes, if we added their statistically expected payoffs from such trade, it will invariably be negative – They will, on average, BOTH lose money.

In contrast, put two SUCCESSFUL Forex traders in front of a high probability trade set up at any given moment in time for a particular currency pair and give them each a tried and tested Forex strategy to work with.  Insist that each of them must take opposite sides of a trade – one will buy the currency and the other will sell.  What is the likely result?  One will win and one will lose, right?

WRONG AGAIN.  More often then not, they will BOTH end up making money on the trade.  Again, if we added their statistically expected payoffs from such a trade, it will invariably be positive – They will on average, BOTH make money.

Confused?  Confounded?  Downright Angry?

Read on!

Paradox 2:

Many SUCCESSFUL Forex Traders have a win ratio of less than 50%.  This means that on average, they are more often wrong than right in their trade decisions.    For instance, there are many successful forex traders with a win ratio of less than 40%.  Yes, a Forex trader who has a win rate of say, 38% can easily be consistently successful in trading currencies profitably.  They will be right in their trade decisions 38% of the time and wrong 62% of the time and still consistently make money trading currencies.

Bullshit, you say?  Impossible, you believe?

Do these paradoxes confound you?  Again, is there some secret that successful currency traders know that allows them to succeed despite the odds.  Is there some magical formula that allows these elite traders to overcome all of the odds to be consistently successful at trading the Forex?

Yes, there is a “formula” or “technique”.

These traders are doing something very different from 95% of the unsuccessful forex traders out there.

The “Secret” so Cleverly Hidden in Plain View

The Secret to trading currencies successfully is something you already know and have heard about.  It has been written about many times.  There are books written about it and videos explain how this secret works.  All Forex courses teach it.  All Forex schools have this in their curriculum.  There is even software available to implement this secret.

The experts flat out tell you how important this “secret” is.  They even go so far as to point it out to you.  Yes, they tell you, “here is the secret to trading currencies . . . “ and lay it out on the table for you.

Yet for most of us, we still don’t manage to see it.  It is directly in front of us in plain view, but we are unable to grasp the secret.  Even though we are told what it is, we don’t appreciate its significance.  Not until we have fallen flat on our face many times and lost a lot of money do we perhaps begin to get an inkling about what the secret is all about.

Ok, Enough with the Cryptic Language, What is the SECRET?  TELL ME!  TELL ME NOW!!!

Without a doubt, the single most important element to successfully trading Forex is . . .

Disappointed?  Expecting something more mystical or elaborate?  Something more grandious?  Sorry to burst your bubble.

The secret to Forex trading is to implement a sound Forex money management program!  That combined with a reasonable trading system and sound trader psychology is all you need to succeed.

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