PART 2: What forex strategies tend to be the most effective and why?

What forex strategies tend to be the most effective and why?
While there can be large differences between effective forex trading strategies, let’s discuss a few common characteristics that all effective forex strategies share.
• Effective forex strategies do not need to be expensive to learn
Effective forex strategies can seem elusive to the beginning forex trader, however, it is common knowledge among professional traders that there are many different ways to successfully trade the market and the specific strategy you use is not nearly as important as learning to manage your risk correctly and maintain an objective mindset. So the very fact that so many websites are charging thousands of dollars for various trading strategies and systems means that traders who do not know any better are very likely to get scammed out of their hard earned money. There are certainly effective forex strategies that are priced fairly and more than worth the purchase price. However, be very weary of getting mixed up in any of the thousands of forex trading “robot” software or lagging indicator based systems that claim to make you rich over night if you just buy their super-expensive trading system. You can learn much information about successful trading for free on the internet and there are also many excellent forex mentors to learn the ropes from as well.
• Effective forex strategies do not need to be cutting-edge or new.
Humans have been speculating and investing in financial securities since the 1700’s when Japanese rice farmers used candlestick charts to record the price movement of rice and profit off its movement. While trading the financial markets has certainly come a long way since then, the basic concepts remain the same. Markets are driven on human belief about a security’s price, these beliefs are reflected on a price chart and able to be interpreted on them as well. From the Japanese rice traders of the 1700’s to famed traders like Jesse Livermore and George Soros, traders who understand that much money can be made by implementing simple price interpretation concepts and monitoring one’s emotions and risk, have been profiting for centuries. Most new or “cutting-edge” trading software programs or trading systems designed around lagging indicators and “rules” for how to use them, are nothing more than sales pitches by savvy internet marketers. Don’t look to re-invent the trading wheel, stick to strategies that have worked for other traders and learn the basics, concentrate the rest of your efforts on controlling your emotions and your risk.
• Effective forex strategies are produced by seasoned professional forex traders.
Professional forex traders are hard to find. This is because about 90-95% of all traders that attempt to find success in the markets fail at it. So this leaves a very small percentage of traders that actually figure out how to make trading the forex market their full-time career, and an even smaller percentage that are willing to take on the task of teaching other people how to trade, likely because most pro traders are too busy enjoying the spoils that accompany a successful career as a forex trader. However, there are indeed a handful of professional forex traders who also happen to be very gifted teachers. If you do decide to learn a forex strategy from someone or buy a trading course or system from a website, make sure the person you are learning from is the real-deal, meaning they walk their talk. If you can’t find any evidence on a website which is selling a forex educational product that its creator(s) is a professional trader, then don’t buy it or use it. Just as you must learn from a seasoned pro in ANY other profession, so you must do this in the world of forex, in fact it is probably more important that you learn forex strategies from a professional trader than it is for many other professions.   By:http://www.forextradingstrategies.org