Mechanical Forex Trading Just Doesn't Work

I understand that it's only human nature to make things as simple as possible. While it's a noble idea, sometimes people take it just too far. Forex trading is one example of this. I say this from all the traders out there who are looking for some kind of mechanical trading system. It's not that simple, folks.

I say this because I went through this issue myself when I was first starting out. I didn't want to know what made the market tick. I just wanted something that would say "when X does this, you always do Y". But the thing is that the Forex market doesn't move so rigidly. This is something that many new traders have a hard time grasping.

But eventually the penny clicked, and began to look at Forex trading from a different perspective. After you take so many losses from following "system rules" I decided that I was looking at all of this the wrong way. So, I changed my perspective on what it means to be a trader.

I was acting as if I could move the market just by trading it mechanically. The problem I wasn't actually diagnosing what the market was telling me. I was just hoping for the best. That was just simply not going to cut it. If you are spending more time "hoping" as a trader instead of analyzing, you minus well be placing bets in a horse race.

I began to do a little research on what historical successful traders used to do. I couldn't help but notice there was one phrase always stuck out when I was looking into their history, and that was "price action". Almost unanimously, these traders used price action to help them become successful.

When it comes to price action, not everybody is going to trade it in the same manner, but I think that's the real beauty of price action. We don't all look at things the same way, so why would we all trade the same way. If you want profitable results, you are going to have to do things differently than the other 95% of traders who are failing... and that requires being subjective with your interpretations of trading.

If you want to be part of the less than 2 % who can do this for a living, I encourage you to not look for the easy way out, and roll up your sleeves and find out what makes the market do what it does. After that, the sky is the limit.