It doesn't matter what type of trading you engage in trend following, swing trading etc but your Forex Trading strategy must contain the 3 elements enclosed to succeed and here we will discuss them...

There are two elements which relate to the method itself and one which relates to your mindset - let's take a look at them.

1. Simple, robust and Trade the Reality of Price Change

The first point to keep in mind is there are no certainties when trading Forex, you are only trading the odds. If you think you can predict human behavior - you can't.

You should trade the reality of price change as you see it on a Forex chart, if you try and predict you are hoping or guessing and that means losses. The system needs to be simple just a few parameters because, the more complicated you make it, the more likely it is to break in the brutal hard world of real time trading.

It's as true today as it ever was - simple systems make money, complicated ones get turned to dust.

2. Money Management Rules to Cope with Volatility

Many traders think money management takes care of itself but it doesn't.

Your key to winning is to take care of losses and keep them small. Just like the great football teams are based on defense, so to is Forex trading. You are going to have a period of losses and you need to keep them small.

There is balance though - you must place stops that are outside random volatility, place your stop to close and it will look like you have low risk - but you have an almost certain chance of being stopped out and all you will do is see your account equity fall and get wiped out.

If you have a small account risk up to 10% per trade - but don't trade often, be patient and wait for the right opportunities. Keep in mind in Forex trading you don't make money by trading often, you make money by picking the right trades and risking enough to make meaningful gains.

The key is to risk enough at the right time and it's a fact, you can trade once a month and still make triple gains with your Forex trading strategy.

3. Confidence in it and Perseverance

You can follow others but if you do make sure you know how and why the system works so you can have rock solid confidence to follow the system through a losing period and keep losses small.

Losing periods are hard!

We all have egos and emotions and they will try and pull you off course and deviate from your system but if you do deviate from your system rules you have no system.

Trading discipline is under rated by most traders and they think it just comes - but it's the variable that separates the minority of winners from losers, is based on education and inner understanding of your personality.

Why You can Win if You Want to!

It's a fact that anyone can learn to win at Forex trading but most traders lose and this is due to poor education and lack of confidence and discipline.

The market doesn't actually beat the trader, the trader beats himself understand this key point and the elements of success outlined above and you can enjoy success with your Forex trading strategy.