One of the main obstacles to the success of a forex trader is mental. If likened, forex that can be likened to a martial armed competition. The key to success in winning a battle in competition is of course not just relying on weapons, but also people who use them. Weapons as good as anything will be useless if the person using the less able to use the weapon. Similarly, forex. So far the forex beginner traders always have the same question: “What is the best and most consistent trading system?”, “How can I profit only with what indicator?”, “The best MA for H1 timeframe, H4 what is it?” , and various other questions about it. In this case it is clear that what the forex trader thinks is just that if they find a great system, then they must be successful in forex. This is what people often call the Mental Holy Grail. The Holy Grail is a term often referred to in the trading and investment community. For most traders, holy grail is a magical trading system that provides a formula or secret to generate profits with very little risk or no risk at all.
If you still think like that and you are really serious to wrestle forex as your main income, immediately throw away mental holy grail this. As I explained earlier, like in a martial fight, sometimes people who only use wood can win against people who use samurai weapons or other great weapons. There are even people who only have empty-handed hands can also be a winner. Inside forex, there are also some traders who chartnya naked (no indicators at all) and can consistently bring profit. So the bottom line here is success in the forex world depends on 80% of the trader itself and 20% is the forex trading system.
The book that explains very well on this is the Book of Peak Performance Forex Trading by Yeo Keong Hee.
For those who believe in the existence of holy grail will assume that market movement is predictable and we can take advantage of it. Although the forex market is not completely random, it will be very difficult to predict the movement of the market. If you still think that the market is really predictable, I suggest you stop trading forex right now and run other businesses as earnings. What I need to emphasize here is that although the market is not fully random, but the market is also unpredictable like science like physics and mathematics. In every market movement there is always a chance we will be wrong.
A good Trading System does not always consistently generate buy signals when prices are low and sell signals when prices are expensive. A good trading system is to meet the following elements:
– Recognize the possibility of entering a position with a large (uncertain) opportunity for profit.
– Have a good system to control the risk (a clear plan for loss if the price moves against the direction)
– The system helps the trader to be self disciplined and stick to the rules.
Mental Holy Grail has always haunted forex traders who believe that once they find a winning formula they will be able to consistently make money in the market. For me this will be a kind of endless renewal. In fact there is no such thing as a secret formula to be able to consistently generate profit in forex. Forex is not only about the system but also the psychology and knowledge of the trader itself.