The Forex market is not an easy place to be in and the majority of traders lose money. The most important reason for this is attitude. Since most losers expect to make a ton of money overnight and get rich quick they enter trades with a very low probability of success and/or an unacceptably high degree of risk. They have neither the patience nor the discipline to take a long-term approach to trading and to accept the fact that there will be times when they will lose money often over a prolonged period. They also do not realize that there is no point in undertaking a lot of risky deals instead of a few profitable ones.
Greed and fear are the dominant emotions in a losing strategy. Greed is the role when your expectations are unrealistic and you are constantly going for the big day. Fear comes into the equation when you let the thought of losing money dominate even an otherwise sensible trading strategy. Making a profit, involves a constant trade-off between risk and reward so that you win more than you lose. This is why in the long run a constant accumulation of small gains is easier to achieve than one large kill.
To maximize your profitable opportunities, you need to have strategies for both short-term or day-to-day trading and long-term trading. One technique in short-term trading is called scalping, where you take small profits in the 5 to 15 pip range. As soon as they materialize and keep repeating the trade as appropriate. With an appropriate stop loss to protect you, this strategy will involve a constant accumulation of steady gains, but requires patience and discipline on your part.
And excellent way to implement a scalping strategy is to get your serve a state of the art software trading package, also called a forex robot. Earlier forex robots suffered from the drawback of overly rigid programming, making them inflexible and unable to adapt to quickly changing market conditions. The latest generation, equipped with advanced programming such as artificial intelligence, and innovative trading algorithms, have a much better track record off short-term predictions on market price movements. These robots will not only read and analyze the conditions but also trade on autopilot, automatically entering and exiting trades when they receive the right signals.
Source by Mark S. Carter