.

So many Forex traders quickly glance at a chart and say: I bet it’s going to go up today? Better yet, I can see price slowly moving up. I am dead certain it’s going to go up for sure.

In fact, I am so positive it’s going to go up today that I could place a bet on it. I am 100% sure of it, I am going to buy right now! Bang!!! As you hear the gunshot sound from Meta Trader 4 place your long buy order.

Always Use a Stop Loss Trading Forex…

Now, all I need to do is place my stop loss at the nearest swing low and put my take profit for triple the amount of what my stop loss is. Done! So now I can get on with my day because I have my stop loss set. I have my take profit set. And I am long this Forex pair. Time to go play 18 holes of golf…

Can you guess what happened? Well, after playing 18 holes of golf and thinking you will come back to a nice FAT Profit from your trade analysis, instead, you come back to a huge loss!

Why? Because…

You traded what You THINK! Not what you see. Meaning, instead of going off and playing golf, you really should have been watching over your trade to see if the current up trend you saw will change direction or not.

When trading the Forex Market, the trend can change quicker than you can say BOO! In fact, it can change on a dime. So don’t just take a trade position based off of an assumption, your trade analysis ‘MUST BE’ based off of a rock solid technical or fundamental trading strategy.

One of the most powerful trading strategies I know of is ‘Forex Divergence.’

There are 3 different types of divergence that you can trade off of:

Regular Divergence

Double Top / Double Bottom Divergence

And… Hidden Divergence

When trading any type of Forex Strategy you must be there to watch over your trade unless you are trading ‘End Of Day’ trading where you only need to look at the charts on the close of each day.

Like they say:

“It’s Not How It Opens, It’s How It Closes That Tells You The Near Term Trend”

But if you are trading a shorter Forex time frame like the 15 minute or even worse, the 5 minute don’t assume to think you can place a trade and put on a stop and a target then take off and play an eighteen hole round of golf and get away with it.

Plan The Trade – Then Trade The Plan.

You need to be there to see if you made the right chart analysis or not. And trust me, if you were guessing to begin with I guarantee you will be wrong 7 or 8 times out of ten. That is why we need a proven trading strategy because it separates the amateurs from the professionals.

So, if your trade went bad you can quickly close out your trade for a small loss and wait until the next ‘Forex Divergence Setup’ occurs. You see, by following a trading plan, no matter what – you need to follow your rules you set out for yourself. You will have a much higher rate of success when you follow it trade after trade.

In other words:

“Trade What YOU See – Not What You THINK?”

Leave the guesswork for the amateurs. Trading the Forex Market is not like playing a board game or a game of cards. Forex is a serious business, and if you don’t take it ‘Dead Serious!’ You will lose money! In fact, some people blow up account after trading account and are to stubborn or to ‘hard headed’ to quit guessing the near term trend and start to follow a rock solid trading strategy.

People who never follow the rules and continue to take short cuts never become successful Forex Traders. In fact, they don’t really realize it until it’s too late. All they did was turn a business opportunity into a gambling game. The same as like going to a gambling casino and placing a bet where most people know that the house has it rigged for them to win 60% of the time.

You Can’t Trade Forex By Dumb Luck Or Chance!

If you combine a 60% chance of losing with plain dumb luck – what do you end up with? Loss after loss. The same goes when trading the Forex market. The more you guess the more you will lose.

Please take my advice here, ‘Trade What YOU See – Not What You THINK?’ your trading account will thank you over and over again. And stay far, far away from gambling casinos unless you are a professional Poker Player because you will just end up losing money there, too…

So if you want to turn your trading around. First, listen to what I just wrote here but most importantly, trade a “Technical Forex Trading Strategy” that has a proven track record like Divergence, or trading off of trend lines or buying off of support and resistance.

But whatever you do – don’t guess at it! Even if you are new to trading, start a demo account and learn how to trade before you put your ‘Real Hard Earned’ money on the line.

Trading Forex is NOT a “Get Rich Quick Scheme!

A lot people get over excited about starting to trade thinking they will become rich over night. When in reality, Trading Forex is NOT a “Get Rich Quick Scheme!” It’s a profit taking business and if you don’t take it seriously, the smart money will take your money every time.

You can lose money when the price goes up if you are short. You can lose money when the price goes down if you are long. You can also make money when the price goes up if you are long. You can also make money when the price goes down if you are selling the market short. The “Trick To It is” being on the right side of the trade.

Once again, in order to do this you need to:

“Trade What YOU See – Not What You Think!”