Forex Trading - Why You Can NEVER Predict Forex Prices

Author: kelly Price

Article:
If you think you have to predict forex prices in advance to win
your wrong. It's a sure fire way to lose but you can make huge
profits if you understand this simple point...

Forex trading is a game of odds

That's all it is but understanding this is your key to forex
trading success.

There are lots of systems on the net and vendors who tell you
that you can predict prices in advance but prediction is another
word for hoping and guessing and that won't get you anywhere in
forex trading or in life.

There is no way to predict what will happen, as markets don't
move to science ( and if they did we would all know the price in
advance and there would be no market) but they are not random
either - chart patterns come around time and time again you can
trade for profit.

You won't win every trade but if you win more than you lose you
can make money and that's the object of forex trading.

You need to simply trade the reality you see on the charts no
hoping or guessing and act like a good poker player would:

When you see a good hand in poker you bet on it sure you're not
guaranteed to win but if you always bet with the odds in your
favour you will win longer term with your forex trading
strategy.

A Great Way to Trade the Odds

Is to trade breakouts to new chart highs or lows - look at any
chart and you will see most major moves start from breakouts.

With a breakout, you don't predict you wait for the breakout to
occur and trade the reality of the price break.

While this sounds simple most traders can't do it.

Why?

Because they haven't predicted it and think they have missed
some of the move. They therefore want a pullback where they can
get in at a chart low and of course the trade does not pullback
and they never get in.

Traders like to get in at a "comfortable level" and predict a
top or bottom but the odds never favour them and they lose.

The lesson of this article is - trade the reality and forget
prediction and focus on the odds. If you trade in this way you
can make a lot of money and a breakout forex trading system is a
great place to start.