Why is it that You have a handful of traders that truly become forex masters while the rest remain amateurs???????
It's simple really........Losing traders hold on to losses, while talking themselves out of following profitable trades. It is a vicious cycle, holding losses because of fear, blowing up another account, adding money to your account with your credit card, saying this time will be different while struggling to pay bills and climbing deeper in debt. Sound familiar????????????
This is not the way this game is suppose to be played, yet for MOST traders this is the harsh frustrating reality. The brokers who trade against You count on You holding losses so that they can send their children to Ivy League colleges, drive fancy cars and send their wives to those swank salons. The more traders hold losses the better lifestyles brokers enjoy.
Forex is suppose to pay You, not be a continual vacuum hose draining Your families wealth. THE #1 CAUSE OF FAILURE IN FOREX IS LACK OF DISCIPLINE!!!
Any forex master will tell You that forex is not hard, it is the discipline to consistently trade a winning strategy even through a series of losses that is hard. Forex is psychological warfare, it creates a kind of prisoner of war mentality for the losing trader, whipsawing him around back and forth, stopping him out until he is so confused that he doesn't know which way to go. When the real trading opportunity presents itself, he is too scared to enter and if he does enter he exits too soon because he is always on pins and needles waiting for them to trick him, so instead of riding the trade for the full profit, he jumps off while he has a little safe profit.
The #1 predictor of forex failure is the inability to cut a bad trade. IF YOU CAN NOT CUT A BAD TRADE, IT IS IMPOSSIBLE TO WIN HERE. There are a ton of systems teaching You tricks and strategies; but few tell You a critical truth that if YOU CAN NOT CUT A BAD TRADE, then eventually You WILL SURELY LOSE no matter how big Your starting balance may be.
A healthy prosperous trader is different in that he sees a good set-up and enters, if he sees that the advantage is lost, then he recognizes it for the trap that it is and quickly gets out, preserving as much capital as possible for the better trade. A trading star realizes that he can always earn back whatever was lost and even more.
If You take a hit, don't consume Yourself with the amount loss, CONGRATULATE YOURSELF for being smart enough to save your wealth to take advantage of the trading opportunity that will allow You to increase wealth.
It is an old but very true saying, especially in forex, 'A STITCH IN TIME SAVES NINE!' In other words cutting that bad trade will save you from digging a deeper hole in the sand trap of debt and allow You to begin to build instead of deplete Your family's wealth.
All successful traders trade with superior discipline. LACK OF DISCIPLINE IS THE KILLER IN THIS GAME.
The best thing about forex is that You don't even have to be that smart to do it. Any man of normal intelligence with the patience to wait for a good trade set-up, the strength to cut a bad trade and the patience to ride profit to fruition can do well here.
EXPECT TO SUCCEED IN FOREX. IF ANYONE ELSE CAN EXPERIENCE SUCCESS HERE, YOU CAN TOO!
YOU CAN ABSOLUTELY DO THIS (^_^)
HAPPY PROSPEROUS TRADING 2012!