Featured book

Learn to Trade Forex with an Edge

Trading involves skill acquisition, most people keep trying new skills and never make it.

The last 15 years have taught me one simple thing, more than strategy, more than a set-up, and what’s more, important is psychology and risk management.

If you can manage your risks properly, and keep a cool head, you would eventually succeed.

One simple mistake most novice traders make is the assumption that a win ratio for a strategy would happen in the next 10 trades.

A strategy can have a 70 percent win rate, but that doesn’t mean you would win 7 out of every 10 trades.

Indeed, the law of large numbers suggests, that to get closer to the win rate, you must have performed the experiment for a large amount of time.

For traders, that a large amount of time is actually 1000 trades. If you have not placed 1000 trades comfortably with a strategy, you do not truly know its win rate.

This is where many get it wrong, through impatience and greed.

Oftentimes, what is needed isn’t just another strategy or a magic pill, if there is any magic pill at all in Forex, it is the one that works on your psychology and risk management.