why people do not success at Forex trading?
The answer to this can be objective. Some experts say that the market is designed for investors to fail while others say traders do not have the resources needed to make sound investment decision.
There may be a little truth to both statements. The odds are not in the favor of the investor. If so there would be a lot more people that are successful in Forex trading.
When it comes to trading everyone starts out with the same odds. Some people are able to develop techniques for trading and some are not. Some people are able to be patient when others want to make a profit immediately.
There is a catch..
The statement can be considered to be an excuse for failure. There are many that enjoy success,
but more people seem to fail at Forex trading. More people fail at this trading than those that make a profit.
There is a reason why so many people fail at Forex trading.
Many seem to just give up.
This is why they fail at Forex trading.
If they give up they do not give their account a chance to be successful.
When a person is trading they already know that the odds are going to be against them. If they have limited resources this can also make the trading more difficult. There are going to be challenges but that is not why most people fail.
This website has number of strategies and tips on how to change the odds on Forex trading to make them in your favor. There is the candlestick pattern, the chart patterns, and other tips that have helped me become successful over the years.
There is one thing that is keeping you from being successful. The main thing is that people avoid the Forex market. If there is nothing favorable to trade, then you should not make a trade.
In order to become successful at the Forex market you need to allow yourself to take some space from your investment. If you do not do so you can get burnt out very quickly.
Burnout is why most people get out of the Forex market. They do not know when to call it a day and start fresh the next way. There is no need to be on the market 24/7. This can only lead to trouble.
There can be a number of reasons for this. Many Forex traders said that they became successful after distancing themselves from all of the charts.
This may sound odd but in order to be successful at Forex trading, you need to avoid trading.
There are some examples to stop yourself from overtrading.
Reasons Why You May Need a Break
There are emails from Forex traders that have enjoyed success with little to no time or effort put into the trading . Trading does not have to be a full time job.
There may be a couple of quick fixes for help but in most cases the investors had the same problem. They wanted success so bad they were sabotaging themselves.
Instead of looking at the charts and developing a trading plan, they became obsessed with trading. There is a big difference between obsession and passion when it comes to Forex trading.
Obsession will cause you to lose money.
Passion will allow you to take a more logical approach to Forex trading. If there is nothing happening in the Forex market today that it in your favor, you should wait until tomorrow. You desire for success should be put aside.
If you make a trade that you know is unfavorable you can lose money.
There are some other reasons why you may need to put some distance between yourself and the Forex market.
These are some common reasons to give yourself some space:
Right after a profit or a loss
It is a good idea to take a short break if you have lost a lot of money or if you have made a lot of money.
After you have made some nice profits your emotions and your desire to win may take over. In most cases your confidence will have increased. This can be a good thing but if you let it get out of control it can also hurt your trading.
Even if you made a nice profit, you should stop trading for a couple of days. This will allow you to regain control of your emotions and think in a logical manner.
Poor Market Conditions
The consolidation of companies as well as uncertain prices make for unfavorable Forex trading conditions.
If you start to see consolidations happening you should take a step back from the Forex market.
It is important to watch the trends and avoid condensations. You need to wait patiently until the Forex market shows favorable trading conditions.
You also need recognize the signs of the end of consolidations. If you move too early this can hurt you.
When trading think that the consolidation period will last longer than expected. You will not have to worry about missing out on profitable trades. This will allow you to reduce your losses.
When investing money you are going to care. Try not to care too much.
You may not think this is sound advice.
Please, let me have the chance to explain.
Since 2007, I had successes and failures. I have also worked with 1,000 students and hundreds of thousands of people on my website.
The one thing I noticed about all these people is that they care too much. They want their profit quickly and do not want to wait a month and definitely not a year.
When I started trading back in 2002, I felt the same way. What I have learned over the years is there is a different between being passionate about trading and being disciplined in order to make a profit.
You need to learn when to take a step back and wait. This is one of the thing that separates eh successful Forex trader from the not successful Forex trader. It is important to be passionate but in control at the same time.
Trading is a marathon and not a sprint. You need to know when to avoid trading based on the conditions of the market.
5 Ways For You to Regain Control
Now that you know the importance of successful at Forex Trading there are so tips to help you become successful.
The following tips will help increase your success on the Forex market.
.1 Use a daily time frame
This will help you learn the times to avoid trading on the Forex market.
When you develop a daily time frame, it allows you to slow things down. You can look at the charts and analyze them to help you make data driven decisions.
The daily time frame will make the trading process simple. You will not have to spend hours in front of your computer and look for different signals.
You do not need to look for sophisticated indicators to be successful.
.2 Get a Hobby
While trading may be fun you need something else to do with your life. If you are using the daily time frames you may only get a couple of favorable setups during the month. This is going to leave you with plenty of free time.
If there is nothing to trade for the time, find something else to keep you busy.
.3 Do not look for setups
If you search for something for too long you mind may keep on searching and do not realize that you found it.
This is like saying if you go looking for trouble you are going to find it.
This can be a trap of Forex trading. If you spend hours looking at charts , the setup you did not like will begin to look better.
You may have accidently convinced yourself that the setup is looking good when really it is not.
How does that happen?
This can happen because you are searching for a setup and not scanning the choice.
Once you have made levels for a currency pair, the scanning should not take you more than a couple of minutes. If you do not see anything, walk away and check back tomorrow.
Most people get into the must find mental state when they are looking at setups. Do not let this happen to you. Move on and come back later.
Scanning is a more casual way and you should not look at a chart for more than 2 minutes. If you do not see anything of quality it is time to move on. Try again the next day to see if there are any favorable trades.
.4 Rethink experiences
How long do you think it takes someone to become a successful Forex trader?
How much profit can then make trading on the Forex market each month?
There are some of the most common questions that are asks. In most cases the answer is it depends. There is no set time frame or dollar amount.
If you go to put a timeline on your success you are going to be disappointed.
Many people are often overly optimistic about this and their timeline.
If I had to give an answer I would say it takes years to be successful. You cannot get this success in days or even months.
How much do traders made on average each month?
Even the successful traders make around 5% to 10% each month.
When you begin to make a profit of 2% you can begin to feel better about your trading.
If you have been on the Forex market for 2 years and have no seen a profit there is no reason to why. It can take up to five years to see a nice return. This is why many people give up and fail.
Forex trading is a marathon rather than a sprint. There are no free rides or secrets to fast money.
.5 Recondition your mind and money
This is one of the best ways to increase profits when trading on the Forex market.
It seems that if you are not in the right position you may miss out. If you are not trading you may feel like you are losing.
There is no truth behind this. If you are not trading you are saving your account from losing money. If there is nothing good to trade then there is no reason to trade and risk losing money.
If you begin trading with $10,000 and you lose $5,000 you will have to a least double your money to get back to your starting point.
If there is nothing to trade, observe from the sideline.
If you do not see anything worth trading then you need to protect your account. That is how you have a successful career and make a profit when the market is favorable.
If you want to make a nice profit when trading on the Forex market, then you need to learn how to step back. Once you are able to take a break and are not risking your money just for excitement, you have a better chance at being successful.
Using a daily time frame will help you avoid market conditions that are unfavorable. You should follow the supply and demand principals. When things slow down than you can properly evaluate them.
You need to be patient and stop actively searching for setups. Let the setups find you. All you need to do is scan the charts at least once a day. If nothing looks appealing then look again the next days.
Every dollar you hold onto is one you do not have to worry about making back later. It takes a gain of 100% to make back a loss of 50%.
Give it a Try
Have you been making some of the mistakes on the Forex market that I have mentioned. I hope this post helped.
Share you trading experience below or ask a question. I will get back to you as soon as I can.
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