Many forex traders are searching for the forex holy grail. If they find it, it’s going to solve all their forex problems and they’ll be rich forever.
But does this holy grail truly exist? This article describes our take on it.
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 search of a perfect strategy.
Take a moment to imagine what that means. You would be the richest person in the world by far.
Does the Forex Holy Grail Exist?
Unfortunately, the forex holy grail does not exist. There is no forex trading system that can guarantee you wins on every trade you make. Maybe someone could develop it tomorrow, or fifty years later. 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 hard to find. It’s because it does not exist. And here are reasons for its nonexistence:
1. The Ever-Fluctuating Forex Market
The forex market fluctuates very often. Today, the market is very volatile and trending. Tomorrow, it is dead and barely leaving 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 big 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 prepare for them 100%. You don’t the next thing to expect, and neither do we. And it is hard to prepare a holy grail strategy for what you don’t know will be.
3. The Potential Consequences
You think about it. Forex has existed for centuries. Don’t you think if there was a holy grail somewhere, someone would have uncovered it a long time ago? Everyone would trade forex because it is easy and free money.
No one would have to work anymore since they could just open their MT4 and make gazillion dollars in a second or two. And if no one was working anymore, the systems upon which humanity is based would crash. There would be no doctors or bankers or businessmen.
We could go on and on about the consequences the forex holy grail would have on humanity, but we think 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 was an easier way, but there isn’t, unfortunately. Here are 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 important and the effects it has on the market.
While there’s no holy grail, there are countless useful tools that can make your forex trading better. 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 is by winning trades. And the other is by protecting your gains or shielding yourself against excessive loss.
This is what forex risk management is about. Without proper risk management, you could win trades 99 times 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. You too, if you stick to the process, can teach yourself to become a successful forex trader if you stick to the process.
Do these, instead of searching for a holy grail that doesn’t exist.
The search for the holy grail in forex is one that has been ongoing for as long as forex existed. Unfortunately, it is a search for the easy way out. And this does not exist.
Don’t get distraught if you’ve embarked on this endless search, 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.