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Thread: Successful Trading Requires Cumulative Knowledge

  1. #1
    Join Date
    Aug 2014

    Default Successful Trading Requires Cumulative Knowledge

    It takes a lot of knowledge to be a great trader

    When it comes to successful trading, most traders and investors underestimate what it really takes. If you want to achieve excellent results in the long run, it will take years of proper trading education. This includes learning successful methods, strategies, and principles. You also must develop a winning traders mindset, also known as the psychological part of trading. In general terms, you will need to acquire a lot of cumulative knowledge on your road to successful trading. In this article, I will share with you some of this important knowledge.

    A trading philosophy is key

    A trading or investing philosophy is important. It will dictate how you go about making decisions. Trading is based probabilities. You always want to put the odds in your favor on every trade you make. This can be achieved with a winning philosophy. It is important to note that even a good trading philosophy will not help you get the results you want, unless you combine it with essential traits, such as patience and discipline. Once you establish a winning philosophical foundation, then it is a matter of acquiring a solid education. This will lead to successful trading.

    A fundamental concept that makes a big difference

    One of the most fundamental concepts in trading or investing is process versus outcome. Many people who get in the markets dwell solely on outcomes. They think of the potential great wealth, and do not give much attention to the consideration of process. In any probabilistic field, including trading, the best long-term performers all emphasize process over outcome. Concentrate on the process, and make sure the odds are in your favor on each trade you initiate. Once you focus on a winning process, the results you desire will take care of themselves. This concept is important when it comes to successful trading.

    You can be right over half the time and still lose overall

    A lot of traders and investors believe if they are right over 50% of the time, they will come out ahead. This is faulty thinking, and is simply not true. The frequency of correctness really makes no difference. It is the magnitude of when you are right that matters. As an example, if you pick 4 stocks, and 3 of the stocks each lose 500 dollars, but the lone winner nets you 5000 dollars, you are doing quite well. Your winning percentage is 25, but your overall results show a profit of 3500 dollars. This proves a major key to successful trading is the golden rule. This vital rule states to cut your losses short, and let your profits run.

    Profit from irrational market behavior

    Savvy traders and investors are able to systematically exploit irrational market behavior when it happens. Key points to remember include, people are irrational, markets are made up of people, and this makes markets irrational. Understanding the dynamics of the collective is a major key to successful trading.

    Markets tend to have phases when buying or selling becomes dominant. This is how major trends develop. When buying becomes dominant, you get a bull market. On the other hand, when selling becomes dominant, the result is a bear market. You can accurately interpret whether the bulls or bears are in control. This is achieved by proper price and volume analysis. Fortunes are made by trading along with the dominant side. A trend can last much longer than it really should. This is because of irrational market behavior. Understanding and implementing proper trading psychology will directly lead to successful trading.

  2. #2
    Join Date
    Dec 2013


    very useful information. indeed to be able to succeed in forex is not easy. we must always improve trading skills are good and we also need to increase the trading psychology so well that we can get success

  3. #3
    Join Date
    Jul 2015


    In forex trading, then we need knowledge. With the increased knowledge will help us to improve trading results. we can increase knowledge by trying to join in forex forum or with a lot of searching on the internet

  4. #4
    Join Date
    Jan 2013


    Great information. Without proper knowldge it is very difficult to succeed in Forex. If you have knowldge and skills then it would be good to make profit in Forex trading.

  5. #5


    Knowledge is of course very important in trading, but it doesn't guarantee profit, one has to learn how to apply knowledge. Sometimes it seems like you're a profit already, but in reality it turns out you aren't.

  6. #6
    Junior Member reggi's Avatar
    Join Date
    Jun 2017


    I've been on forex for about 2 years and I understand that I'm still in my stages of development, everytime I'm opening something new for myself.

  7. #7


    Sometimes you have the knowledge, but you can't apply it and get profit. And the more time you spend on forex, the stronger the feeling that you don't know anything.

  8. #8


    Forex is a non-stop learning and training process. There's not a day without new startegies, brokers, indicators, advisors, etc. And if a trader doesn't learn and develop, there's a really small chance of getting good profit.

  9. #9


    You can never stop and be sure that you know everything about forex. Every day there's something new. If you want to improve, you have to keep up with the recent trends and learn non stop.

  10. #10


    Definitely without knowledge a trader never ever can be successful. To get good result trader need to build their base with pillar of knowledge. Very helpful thread I think for every trader. I also try to maintain this things in my trading career. I have joined a broker which trading platform is secured. Because for me secured funding system is very important. That’s why I joined TopFX24. There deposit and withdrawal process is also very easy.

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