If you look at the adverts online there all about how easy it is to learn currency trading and it is - ANYONE can do it but paradoxically 95% of traders get wiped out so why is this and how can you avoid the errors of the majority?
Let's look at the reasons why most forex traders lose. The first reason is they believe forex myths and here are the main ones:
- You can predict forex prices
- You can follow a forex robot with a simulated track record and make money
- You trade news stories
- You can day trade or scalp the market for regular profits
- You take expert advice
- You believe the markets move to a scientific theory
Believe any of the above and you will kiss goodbye to your equity.
Now let's assume you don't believe any of the above, you're sensible, level headed and want to win now, you still have one major obstacle to hurdle:
Applying your forex trading strategy with discipline.
Discipline is really what sets apart the winners from the losers.
Its talked about a lot - but most traders don't realize how hard it is ( until they do it ), to keep executing your trading signals when your losing and the market makes you look a fool - its hard, very hard.
Most traders lack the discipline to keep their losses small - but have even more problems accepting big gains. Again, this may sound like a paradox - as we all want big gains.
So why can't we accept them?
Let's look at an example:
A trader gets a profit and is pleased and the bigger it becomes the more he wants to take it “before it gets away" what happens open equity eats into his open profit and it becomes too much, he moves the stop up to close and gets taken out the market by random volatility.
What happens next?
The position goes back the way he though piling up huge profits and the trader's not in, because he didn't have the discipline or courage, to hold the position and accept short term losses to get the bigger prize.
Look at a forex chart and you will see forex trends last for weeks, months or years and many can make you tens of thousands of dollars for you on a small deposit - but you must have the discipline to lock into them and hold them - its hard - but it can be done.
You need a robust simple forex trading system you have confidence in which you have the courage to apply with discipline.
If you want to make forex profits you can and a lot of them and its achievable - but don't be deceived, it's not easy and you wouldn't expect it to be with the rewards on offer.
This article has given you a brief insight in what the majority 95% do wrong and what you can do right to enter the elite 5% who pile up the big forex profits year in year out - Want to joint them? Well if you do, we hope this article has helped put you on the road to currency trading success.
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