When it comes to selecting Forex trading systems, you have a choice between buying the system and looking for a free one. The biggest problem with free Forex trading strategies is that they are not time-tested. PDF systems are usually worth as much as you pay, i.e. about a hundred USD. Learn why Megatrend is the best.
However, the trading system is not the only factor which decides your success. Many trading beginners rely too much on their setups, and this leads to one problem:
…as soon as the market changes and their systems start losing money…
…the traders want to completely change their strategies.
The fact is, you don’t change your system just because of a few losing trades. In my opinion, there are six main reasons to adjust the system.
Learning Through Trading
Learning to trade is not a matter of finding the ideal system, indicator or trading pattern. Trading is a skill, and every ability needs practice. Read up on trading psychology, register for some trading webinars and work on your risk management.
Find the field where your knowledge is lacking and improve on it.
Changing Market Conditions
The market changes all the time, so we must change accordingly. The nature of financial instruments largely depends on the macro environment at the time. The traders change their behaviour according to the broader economic climate. A currency may react to a news release, technical level or manipulation.
The nature and severity of this reaction depend on many things:
2.bull/bear market conditions in equities
3.global macro themes.
Many outstanding trading systems suddenly stop working due to changing market conditions. You have to consider this if you want an effective trading system.
Lack of Trust
When you begin trading with real money, you may find yourself in this situation:
…as soon as you experience a few losing trades…
…you start questioning your system’s reliability.
Changing an ineffective system sounds obvious – but you should be careful. That is not to say that you can never tweak your system. As I said, the Forex market is changing every moment – and you should adapt.
However, you must also give your system a chance to prove itself. Otherwise, you will start from scratch every time you make a losing trade.
Bottom line – you have to trust your trading system.
Megatrend Pandemic Pattern
I think many EMA crossover systems don’t work. Price tends to cross over historical levels more than it expands away from it. This can lead to many false signals, which will then result in losses.
Price has a tendency to revert to the mean. In other words, it returns to its historical price levels or averages.
This is why there are so many whipsaw losses – from prices swinging back and forth.
For example, there is a so-called EMA spiral. Keep in mind that EMA is an excellent dynamic support/resistance indicator.
In fact, it’s much better than a simple buy/sell indicator. That’s why we have the proprietary Megatrend Pandemic Pattern. The success ratio of the pattern is more than 91 %. It’s the exclusivity of the Megatrend Trading Method.
I have seen many systems overstuffed with pretty-looking indicators during my long trading career. These systems looked more like a kaleidoscope of colours rather than a professional setup. Indicators are there to help you make decisions – they can’t make decisions for you.
If a system uses too many indicators, it will likely give you many false signals. As a result, you will also end up filtering out the good trades. For many trading beginners, indicators are like shiny objects that distract their attention.
Remember – less is more. Megatrend is a pure price action method.
In financial markets trading, there are 3 types of risk:
Market risks can always happen during low liquidity times. The solution is simple – we don’t trade then.
Event risk occurs at scheduled times but can also happen at unscheduled times – like in the poll example. There can be rumours, too, that unexpected cause swings. They usually occur during a low liquidity period. (Monday open, Friday close or early Wellington session). With the MEGATREND, things like that should happen with a minimum risk. That is why we trade with conservative risk and dynamic stop loss.
The rules with MEGATREND keep us out of trades when volatility is low.
No valid statement
Many systems out there sell without substantial proof of their effectiveness. Let’s assume you have bought a new system, and it shows a friendly PDF with results. But that PDF doesn’t contain any info about the trader, the system or the account.
It also lacks a link to any third-party tools such as Myfxbook. See my trading record and notice the difference to many systems out there.
The best way to learn money management is by trial and error or by visiting webinars and learning from experienced traders.
Start thinking in big sample sizes:
…instead of analysing one or two trades…
…collect a database of at least 100 trades.
Trade on a demo account and figure out your setup first.
Don’t blindly change your trading approach after a few bad trades.
A stubborn trader is a trader who succeeds.
Most traders are just confused and lost in the ‘noise’, but MEGATREND removes that confusion (‘noise’) and offers a clear plan and signals. In fact, we are not the only ones… Many big institutional traders and banks use the Camarilla because of its superior information and accuracy.
We recommend the MEGATREND for every type of trader – regardless of style, time frame, approach or system you are using now. This method will make your strategy clear, consistent, and duplicable.
Another massive benefit of trading MEGATREND is its consistency. See the results via this link.
So it is only you who stops yourself from being profitable. Now get into the action and Join my Telegram group via THIS LINK.
Cheers and safe trading,