7 Surefire Signs That You’ll Never Be Successful Trading Forex

sure-fire-ways

Get this: only 6 percent of people who attempt to become professional traders actually succeed, and yet more than 50 percent are right on the money most of the time.

These are some pretty staggering numbers if you really think about it. It shows just how far fetch trading for a living is possible for most people with unrealistic expectation to master trading in a relatively short period of time.

The interesting thing is that one of the top challenges across the trading environment is capital preservation. In fact, traders were right about the trend direction more than half of the time but lost over 70 percent of their capital on their losing trades.

Whether you chalk it up to a lack of right tools, the incessant need to “be right about the market” or any other reason, this an issue that needs to be addressed.

We need to ask and answer the critical question: What is stopping us from becoming successful with Forex?

I haven’t figured out the key to success, but I can tell you the surefire signs that you’ll never be successful trading forex and how you can avoid being destined to fail.

1. Blame The Broker

Rumor has it when your trade loses, your broker is on the other side of your trade taking your rightful wins. This has also be known as stop loss hunting. Your broker is close to the forex market, and many of us assume that the broker goes against your position and maybe just maybe increase the pip spread just to reach your stop loss and close your trade.

Trying to blame your losing trade to your broker is a sign of insecurity, a common push the blame game for beginners.

The market average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. The forex markets are huge and volatile, and their rallies and declines can feel overpowering. New traders who are frightened tends to look for an excuse to blame and probably it is their brokers who suggest that losing trade.

Action Steps:

  • Choose a reliable and well-know broker. Always check the reviews before you sign up.
  • Do not set tight stop losses and always consider the maximum spread.
  • To be successful trading forex, you must accept total responsibility for your decisions and actions.

2. Blame The Guru

Many beginners overwhelmed by sheer amount of free information, soon find himself surrounded by all colors of claimed experts.

Let me expand on this, initially online vendors claim to have the best technical tools put together into a winning system. Then offline gurus sell their winning system by claiming 200% returns on your initial investment priced in the thousands. Thereafter online gurus sell their trading system in the form online education filled with testimonials of their clients neatly presented in their sales page. Then lately the same vendors showed backtested results traded by an automatic system with 3 figures returns percentage. And in the recent spate, self proclaimed gurus gives free signal when you sign up for their designated broker with promises of winning results.

Action Steps:

  • Whether or not you had encounter with the above examples you are 100% responsible for the outcome of your trades.
  • The next time you get a trading tip, run it through your own screen to see whether it gives you a buy or sell signal.
  • Be very selective to a few gurus, they might alert you to opportunities you had overlooked, but there are no shortcuts to be successful trading forex.

3. Blame The News

It is quite easy to get agitated and bitter when your winning trade turns sour after a piece of bad news hit the market especially when the Feds made a disappointing statement about the growth of the US economy. Or when BOJ steps in pushing the Yen down when you sell against the Yen crosses. The news may have been unexpected but you are responsible for taking on any challenges.

Many website provides economic calendar on a weekly basis. These are news on regular schedules. Prior to opening a trade, you should have done your homework when a country releases its economic data abd be prepared for any volatile reaction with a limit order, stop loss and a profit target. Sometimes if the news is heavily reactive to a currency pair, your broker could stop transmitting signals to your feed or worst ignore your market order.

Actions Steps:

  • It may be wise to tighten your stops or reduce the size of your trade prior to an important news release.
  • Research the country previous sentiments to have a better understanding of a similar events in the past.
  • There are many risks waiting to pounce on an unsuspecting trader. You alone are responsible for casualty control.

4. Blame The System

Traders go through three stages to be successful trading forex. In the beginning, new traders seek someone strong and wise to lead them out of the confusion. At the second stage, mature traders who are more serious insist on doing their own homework, never listen blindly to tips without testing it through their own first. Finally those who are successful trading forex, the discipline trader start paying attention to their trading plan, for getting out with a profit or exit with a small loss.

Trading is never about winning as no system can promise you 100% accuracy. A 40% winning system can still outbeat the forex market as long as exits are plan properly. Win or lose, you have to gain knowledge from a trade in order to be a better trader.

Action Steps:

  • A professional waits for familiar patterns to emerge from the forex market. Profit from that pattern until it turn automatic. Then time tested another before going live.
  • Get a clear notion on how to get in, where to take profit and where to accept a loss if the forex market turns against you.
  • Having neither one of them is like taking a leg of a three-legged stool. Try sitting on it when it is missing just one.

5. Blame The Passion

The forex market operate in an atmosphere of probability. There is no certainty only odds. You have only two goals, to make money and to learn from it if you don’t. There is no shame in being wrong in your trade as your trading capital depends on your humility and flexibility.

I’m going to be short on this, professionals like doctors and engineers took several years to master their occupation and trading is no different.

Action Steps:

  • Tom Basso took seven years of failure to run his own hedgefund and published two books. What makes you do otherwise?

6. Blame The Capital

Making or losing money in the forex market depends solely on how much you put into your trading account. And that will only mean alot when you are holding on to your losing trades. In order to survive to capture the winning trades, you will encounter a short run of losing trades. You need to raise your trading capital to a comfortable five figure to out maneuver the noise in the market.

How much you put into a trade is as much important to the size of your money. Always assume you gonna be wrong a few times before you hit home run. So until then trade to learn.

Action Steps:

  • Take the time to study the forex markets and trade on the demo account.
  • Getting a second job to accumulate your capital.
  • Do not trade less then $20, 000 although $50, 000 provides a safer height of risk.

7. Blame Yourself

Too many people come up with too many reasons not to start learning. The Internet might change, but people don’t. Before you can profit from the market, you need to understand them. Then you need to study the strategies that people use to profit and make money.

Action Steps:

  • Read trading blogs or trading portal.
  • Read books on trading and psychology.
  • Take massive action, dumped those that don’t work and rinse and repeat those that work.

Conclusion

By taking responsible and minimize the blaming game, you can position yourself ahead of the pack and stay way ahead of the game.

The end result should be increased awareness of your thoughts, established groundworks on your outcome and heightened the risk exposure in ensure as much capital preservation as you can control.

That’s not a bad strategy.

What elements of control do you find yourself shifting the responsibilities to outside environment? Leave a comment below.

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