Trading Forex: The Long… Long Term Picture

Filed under: Learn Forex Trading |

Would a beginner to forex trading give up if they were carrying a loss after one long hard year of trading? I’m sure that a majority of them would. However, it is not uncommon for even the best professional forex traders to have a losing year. It happens to the best of them. When we talk about the long-term picture, we generally refer to six months or one year – but really, this is just because most people cannot see beyond that. However, a true forex professional will see the long… long-term picture; and look at their results from the past 3-5 years. Of course, if you are a beginner trader, you do not have that kind of past data to analyse. Plus, if you lose in your first year, you cannot simply keep throwing money away as your system or methodology may not have an edge at all, and you may keep losing. So what can you do?

 

One of the things that you can do is to test out your methodology or system on historical data, which can be found in any MT4 or MT5 platform. Simple click and hold, and them pull your charts into the distant past, and then move it forward slowly and use your system. Mark down the results as you go, and see what kind of profit or loss you would have made. This does not have to be 100% accurate, but if you can at least get a rough idea, then you will have a lot more confidence about your system.

 

Once you have done this with a lot of data, you can then start to get an idea of the long… long-term picture of your trading methodology. If it seems to have an edge, then you can continue on with confidence. If it does not, then it is time to go back to the drawing board.

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