Most traders lose at forex trading. While the fact is anyone can learn and win if they want to, most traders lose when they don't need to, for three main reasons which are the subject of this article...
Here are the reasons that wipe out 95% of traders and you must avoid these key mistakes or join them.
1. Following Others
It amazes me how many people follow ridiculous schemes put forward by vendors and the king of these is the forex robots. Simply, plug them in, sit back and get rich for $100.00, if only forex trading were that simple!
Of course these robots or most of the other systems sold never have real track records, just simulated track records in hindsight and you have no chance of winning with them as there unproven and made up.
If you want to be successful in life or in forex trading, you need to do it on your own and forget others telling you that you can follow them, you can't
2. Not Understanding the Basics
Most people simply don't understand the nature of forex markets and try methodologies which simply don't work and here are a couple of the most popular.
- Believing there is a scientific theory of market movement when its obvious there is not
- Thinking that forex day trading or forex scalping will work even though volatility is random
These people also don't understand how the markets work or how they reward you and they don't reward you for the following yet a huge amount of traders believe they do! Here are some common misconceptions.
- Working hard will give you success, you of course get paid on results regardless of time spent
- Being clever - many clever people think they have a right to win but this is not the case
- Following news stories and thinking there tradable, when its obvious the market is a discounting mechanism
- Not understanding volatility and using to much leverage
There are many more but the above are some common ones.
3. Not Having Discipline
The above two errors which lead on to this one, the elusive trait of discipline.
It's often spoken about but little understood and how it is so hard to achieve. Of course you can achieve it but it comes from knowing what you are doing and having confidence.
Only then will you have the discipline to stay on course and trade through losing periods ( all traders have them), until you eventually hit a home run and profits.
Trading is not just about having a good forex trading system - it's also about having the discipline to apply it and execute your trading signals consistently.
If you have understood the above, you will see why the vast majority of forex traders lose and how you can step aside from them, work smart and get a robust, simple trading system you have confidence in and can execute with discipline, to achieve long term currency trading success.
If you can do the above and understand this forex trading fact, you can make a great second or even life changing income and your currency trading success is all in your hands.
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