What is the secret to forex trading success? Is it the trading strategy or is it risk management? Well, all of these are important… But what I think the real secret is this: doing the exact opposite of what most traders do.
If you believe in this ratio that 95% of forex traders fail and only 5 % achieve forex success, then you need to understand what factors or behaviors cause these 95% of traders to fail and what do you do?
Do the exact opposite of what these 95% of forex traders do.
Take the narrow, less traveled path, it leads to success.
Take the wide path, and it leads to destruction.
This is the key to success in forex trading.
What Do 95% Of Forex Traders Do Wrong?
This list below is not the full list but it shows some of the things 95% of forex traders do:
- inadequate funding
- lack of proper risk management
- over trading
- revenge trading
- lack of emotional control.
- no patience to wait for proper trading setups
- no trading plan
- get rich quick mentality
- counting pips instead of focusing on account growth over a long time period.
- cannot accept trading loses as part of the process
I’m sure you can add a few in your mind but you get the point…
Forex Trading Success Is Very Easy Yet Very Hard To Achieve
Sometimes I just don’t understand myself. I know what to do and yet I do the opposite thing.
What I’ve just explained is the biggest problems faced by thousands of forex traders worldwide. We all know what we need to do to be successful in forex trading because we have read books, we have trade money ourselves and we know from experience what we did wrong.
And yet, when the next time comes around again to trade, we tend to repeat the same mistakes. Its like there are two different people inside one body…like a split personality case.
One is the logical personality that plans to do the right thing but the other one is just the opposite. One mind plans to do the right thing, the other mind does the opposite thing.
So forex trading is like a roller coaster ride for many. I’ve had my fair share of ups and downs.
Why is it that many act opposite to what they should be doing? When you tell you infant son not to play with fire, he will still want to play with it until he gets his finger burnt and then he’d never get close to that fire again.
But for forex traders, its kind of a different story. The infant knows fire is danger and avoids it. Many forex traders are much dumber than that infant and I’m the king of them all.
The big question is why do we continue doing the wrong thing? WE KNOW THE RIGHT THING TO DO…AND DON’T DO IT.
Its To Do With The Mindset
I’m not a psychologist but looking at myself and my failures, I can sort of point a finger at my mindset. My mindset changes when I’m making profits and when I’m losing money.
It is very hard to realize what is happening in my mind “at that moment” when critical trading decisions are made until after that event and I’m like: “Geez, did I just blow up a $3,000 account?”
What’s the solution to stopping all these then?
To be quite honest, I don’t know. I’m still soul searching trying to get to the bottom of my split personality case and trying to find way on how to stop it.
There’s not medicine or doctor that has a cure for this sickness.
I think it has to come from within. You need to find it within you…to stop doing the wrong things in forex trading. Only then will forex trading success come chasing you.