I teach forex for a living and it never ceases to amaze me that people don't think the next key point is the key to forex trading success. If you don't accept this key point and mentally prepare for it, you will lose too.
When I look at the forex education online much of it makes me laugh. You have vendors selling products that promise extra ordinary profits for no effort, with hardly a loss at all but this is not the real world - it's the fantasy world of them selling simulated track records backwards knowing all the data.
Real life trading is a bit harder you don't know what will happen and losses have to be confronted and dealt with.
The Reality
The reality of forex trading is no matter how clever you are how good you're trading system you are going to suffer drawdown and losses and most traders cannot cope with them.
Even the best traders will lose for weeks on end sometimes, that's just the way forex trading is. This doesn't mean you can't win, you can - but you need to face these losing periods and keep these losses small until you hit a home run.
Sound easy?
Well if you trade already, you know it's hard but the way to do it and stick on course until you hit a home run is as follows:
Being Disciplined and Hitting Home Runs
First you need to accept as part of your essential forex education, that losing is part of winning.
Don't let them hurt your ego or get angry it's not personal! Then, you need to make sure you trade with discipline, you will only ever do this if, you know the forex trading systems logic and have confidence in it so if its not your own learn it.
The ability to keep losses small is the key. To do this always assume the worst, place your stop and leave it - never run a mental stop. In most cases if you run a mental stop, you are tempted to hang on to long and think the loss will turn around and this is a fatal mistake.
Like a good football team your success is built on defence - keep it tight at the back and don't concede too much and if you have a sound system, sooner or later, it will hit the big trades you can run to cover your losses.
So the moral is keep losses small, take them cheerfully and see them as your overhead, in the quest for success.
Always Remember
You can be clever you can have a good system but if you are not disciplined taking your losses and keeping them small, you will lose.
In terms of forex success you have to lose to win; this has always been so and always will be so don't fight accept it and your forex trading strategy with good money management and discipline, will lead you to the currency trading success you desire.
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