Shhhhh! The forex holy grail is a really big secret! Every forex trader is searching for it. Some say its hidden in the desert sands of Sahara.
Or you may even have seen a forex website that has these kinds of message:
You know what I’m talking about, right?
You wouldn’t believe this but there are traders (new forex traders) that search for the forex holy grail. And I’m here to tell you the good news that there is a forex holy grail and to be quite honest, it is not what you think.
- the forex holy grail that I’m referring to is not a forex holy grail trading system
- it is not a forex holy grail indicator
So what is it then?
Well, before we get to the forex holy grail…let’s define what a forex holy grail is…
A forex holy grail simply means that when you trade:
- you have 100 % winning trades
- which means you have a system that pin points with deadly accuracy when to buy and sell and when to get out of a trade.
Such a trading system like shown on this chart below would be a the forex holy grail:
So if you have have the forex holy grail this is what is going to happen to you:
- you will be the #1 richest person in the world
- you will have the fattest forex trading account that can move the currency market
- which can result in you possible being banned from trading the forex market and if that happens, you would care because you got trillions in your bank account anyway.
But my friend, there’s no forex holy grail. If you are searching for it, you are not going to find it. It never existed and it never will.
So instead of looking for a forex holy grail trading system or a forex holy grail trading indicator that you think can pump out buy and sell signals with 100% trading accuracy, you got to accept the fact that only have the key to making money in the forex market.
The holy grail of forex trading is trading risk management. You see, not properly managing trading risk in forex is
the number 1 reason why many forex traders lose money.
If you win a lot more that what you lose on your trades, you will make a lot of money trading forex in the long run.
What matters in forex trading is not how much money you make when you are right but how much money you lose when you are wrong.
Its not the trading system or the indicator that causes the trader to lose. You can even have a really bad trading system that has a 30 % win rate but if out of those wins, if you make more than what you lose (the 70% losing trades), you will always will be ahead.
In addition to that you need to have:
- the trading discipline to follow the rules of you trading system as well as following your trading risk management rules.
- patience to wait for trading setups to form and only taking trades that meet the criteria
- an awareness of what your weaknesses are and acknowledge them and manage it.
- the capacity to adapt to situations