HALAMAN SELANJUTNYA:
Forex Trading Psychology - Forex Success Is Easily Achievable!Trading Forex is a 50 / 50 proposition, "buy" or "sell", meaning that if a Forex trader woke up every morning and placed a random buy or sell order with t/p of 50 pips and a s/l of 50 pips, our trader will be about even over the course of one year (not considering the broker's spread). Considering this undisputable statement, here is a puzzling fact that I introduced many times in other articles but I am still mystified by; why do 95% of Forex traders lose money?
I believe that it has much to do with Forex trading psychology.
Here is another statement that I find to be absolutely true; anyone that is truly determined and has the desire and willingness to succeed as a Forex trader will become one. Furthermore, in my honest opinion, it is extremely simple to attain success in this field. Nevertheless, because it is so simple, most people refuse to believe it and as a result become their own major obstacle.
I will repeat, there is nothing magical about trading Forex successfully, one does not have to posses any special talents or knowledge. Everything that is necessary to become a succeed in this easy yet dreadfully rewarding field is 100% learn-able, like everything else in life.
Do you doubt what I'm saying?
If you are not a successful Forex trader than I'll bet you do. Let me briefly establish my point.
I provide One-On-One Forex coaching to aspiring traders. As a personal Forex coach and as a person that enjoys searching for patterns, both in the market and in people, I have noticed certain destructive behaviors and beliefs that countless traders posses and in my opinion, once pointed out and corrected the great majority of traders can easily obtain success.
Here are some of these behaviors that I am referring to:
- Some people want to get something for nothing. These traders want to get rich without any effort on their part. Learning and putting effort is out of the window. They look for robots, magic formula, trading signals from 'experts' and anything that will provide endless riches for the least amount of work...
I find this to be a bit unreasonable to say the least.
- Then, there is a group with an opposite point of view; these people believe that by working extremely hard they are guaranteed success. Although in many professions this is a fact, for currency traders this is not true. Forex traders must work smart not hard. One's efforts should be directed to education and understanding of the market and his or her own self.
Education should not take that long either; I believe that several weeks is plenty. During this time the trader should learn about the Forex market in general, understand an overall winning Forex strategy and learn a specific trading method. From this point on it is not the amount of work that one applies that counts but one's ability to follow his or her chosen strategy and trading method that counts.
- Numerous people believe that easy or simple Forex trading systems do not succeed; they believe that complicated is the way to go. I strongly challenge that, for me, simple techniques work better because they have fewer components. I believe that most indicators either show the same thing or contradict each other.
Forex trading is simple and in my opinion, simple is better. Making it complicated only makes it more confusing and is not necessary or better. I honestly believe that trading Forex successfully has everything to do with the trader and very little to do with the system.
Please reflect on the following fact; today, with our computers and new technology we are able to use methods of trading that are much more complex than the methods that traders used at the beginning of the century, yet we have 95% of losing traders. I don't think that traders could have done much worse at any point in time!
Here is the point that I want to deliver. For Forex trading success you need to understand the Forex market, understand yourself, have specific goals, have a precise plan and have the discipline to put it all together; everything else is simply unnecessary details!