The Cold, Hard Truths About the Forex Holy Grail
Many forex traders are searching for the forex holy grail. If they find it, it's going to solve all their trading problems, and they'll be rich forever. But does this holy grail indeed exist? Let's take a closer look.
The forex holy grail is a trading strategy or system that is supposed to guarantee you 100% wins. Sometimes, the holy grail is also a metaphor that describes the efforts of novice forex traders who are constantly ditching one strategy for the other in their search for the perfect one.
Take a moment to imagine what that means. You would be the wealthiest person in the world by far.
Does the Forex Holy Grail Exist?
Unfortunately, this holy grail does not exist. No forex trading system can guarantee you wins on every trade you make. Maybe someone could develop it tomorrow, or in fifty years. But as of the time of writing this, there is no forex holy grail.
Forex trading requires a lot of hard work for you to become successful in it, not a holy grail.
Why the Forex Holy Grail Does Not Exist
The reason you’ve not found the forex holy grail isn’t that the grail is so hard to find. It’s because it does not exist. And here are the reasons for its nonexistence:
1. The Ever-Fluctuating Forex Market
The forex market fluctuates very frequently. Today, the market is very volatile and trending. Tomorrow, it is dead and barely leaves a particular price range. Because of these fluctuations, a trading system that works in a trending market would most likely falter in a ranging market.
Similarly, a strategy that helps you trade a ranging market successfully may fail in trending markets. These fluctuations make it hard to design a holy grail system that works for all forex seasons.
2. No One Knows What Will Happen Next
The unpredictability of the market is another significant deterrent to the existence of the holy grail. The forex market is not only controlled by the big banks. News and reports from various countries also decide the short and long-term bias of the market.
And since there's no way to control the events that lead to the news, there's no way to be prepared 100%. You don't know what's coming next, and neither do we. And it is rather hard to develop a holy grail strategy for the unknown.
3. The Potential Consequences
Just think about it. Forex has existed for centuries. Don't you think if there were a holy grail out there, someone would have uncovered it a long time ago? Everyone would trade forex because it's easy and it's free money.
No one would have to work anymore since they could open their MT4 and make gazillion dollars in a second or two. And if no one were working anymore, the fundamental systems of humanity would crash. There would be no doctors or bankers or businessmen.
We could go on and on about the consequences of the forex holy grail on humanity, but you get the point already.
There’s No Forex Grail? What Do I Do Now?
There’s no easy way out. Put your head down and learn the process. We wish there were an easier way, but there isn’t, unfortunately. However, here are the steps you need to take instead.
1. Master Your Analyses
You have to master your technical analysis if you’re a technical trader. You must invest your time and sweat into understanding the hidden message behind each candlestick and the chart. And if fundamental trading is what you do, you need to master news interpretation. Know what news is crucial and the effects it has on the market.
While there’s no holy grail, there are countless useful tools that can improve your trading experience. Forex indicators are one of these tools. And you’ll find many effective indicators on the FXSSI Products page.
2. Master Risk Management
In addition to mastering the art of forex analysis, you also need to master risk management. There are two ways to be successful in forex. The first one is by winning trades. And the other one is by protecting your gains or shielding yourself against excessive loss.
This is what forex risk management is about. You could win trades 99 times without proper risk management and still burn your account on the 100th attempt.
3. Trust the Process
Successful forex traders who have been in the business for decades are not 100% profitable. You won't be. But many of them have invested their resources into the market so much that they manage to remain profitable. If you stick to the process, you too can teach yourself to become a successful forex trader, but only if you stick to the process.
Follow these tips instead of searching for something that doesn’t even exist.
The search for the holy grail in forex is as old as forex itself. Unfortunately, it is a search for an easy way out. And it does not exist.
Don't get distraught if you've embarked on this endless quest, however. You can help yourself by diverting the energy spent on searching for a holy grail into taking forex trading lessons. It will take time and effort. But if you do it right, it will be worth it.