Taking up a discussion or dialogue with a traditional financial trader you are likely to hear that “you will never make money in Forex trading“. This might be very much true if you don´t have the 3 needed pillars in place: Knowledge, discipline and management. Exceptional market knowledge is never enough to become successful trader. In fact, it is not even half of the effort. I like to consider what is available to explore and analyze the Forex market as something that is available for anyone to explore. The needed tools are there for any Forex trader with the interest to use them. Available technical indicators will of course bring you further down the “trading road”. However, it will eventually stop if you don´t have a solid trading plan in place. It will stop if you don´t know how and when to act in the Forex spot market.
To be successful in Forex trading, technical- and fundamental analysis is just half of the work. Without understanding how, and when, to use the available market features, you are in fact more likely to fail. It all depends on you. How you want to take benefit, and thus take profit, depends on how you want to place your market orders and when you desire to exit the market. The choice to base your trading activity on technical- or fundamental analysis, when you should enter and exit the market etc. must be based on a very clear thought on how you define your own trading activity. How you define your own trading activity shall result in your own trading plan. The “flow” of it all will in the end result in your trading strategy.
Does your trading plan work well for you? Is the flow of your market activity – your trading strategy – give you profit? Defining your market activity and strategy as a Forex trader might be time consuming. There is a great potential for amendments and testing. However, if there wasn´t any changes and modifications to be made you might not be likely to move on to the best result. A specific combination of technical indicators might be the solution to enter and exit the market that you are looking for. Testing and modifying will always be a process that makes it all better. As soon as this process is over, stay true to it. Use your discipline to follow it through.
The question if your are profitable in your Forex trading is complex and can perhaps not be answered easily. However, if you do your initial work well and design your methods and market tactics using your strong mind and will, you are more than likely to succeed. If you apply a solid management, including a definition of what risk you are willing to take, then there shouldn´t be any limits. Then the sky is not even your limit.