“…Most people believe the opposite of what is necessary for success… Society tends to program you with certain beliefs, most of which are not true.” – Dr. Van Tharp
Happy New Year!
Over 90% of the people break their New Year’s resolutions in the month of January. Over 90% of traders eventually lose their socks on the markets because they tend to be conservative with profits and risky with losses. Many top market speculators are perplexed by a new generation of traders who don’t seem to have a clue about the skills necessary to preserve their trading portfolios. Patience has become a virtue that most people tend to ignore. The world is promoting instant gratification – something the markets don’t offer in the long run (traders would obviously be wiser if they knew the adverse long-term effects of instant gratifications). Joe Ross states that novice traders envision extreme wealth and advantages they will reap… [and] Media images don’t help matters [either]. They show that expensive cars and luxurious homes are associated with happiness and bliss, and it’s reasonable for people to think that making huge wins will produce ultimate contentment. There’ll always be marketers out there who would be showing you extremely gargantuan profits in ridiculously short period of time, presenting a trading idea as if it were the Golden Goose strategy. This kind of tendency is dangerous to the formative trading mindset of innocent beginner traders. Your sense of greed will first need to be appealed to before you can be ripped off. It’s therefore no wonder that many people won’t eventually become successful traders. There’s no way around the established principles that lead to eventual survival on the markets. If you risk little, you win little. If you risk too much, you eventually run to ruin. There’s no way around that.
Dr. Woody Johnson, who’s an expert of trading psychology, writes that one thing that you must come to grips with is that the change you seek cannot happen until and unless you become aware of your issues and problems. Yes, you may be aware of the fact that you are getting results that you don’t want, but that is not enough. You must become aware of your underlying self-sabotaging thoughts, emotions and limiting beliefs that drive what you do. If you don’t, you will continue to do the same thing and you’ll get the same result. Trading is serious business and you must be prepared with the best that you have in order to do battle in the trading trenches. “I would be a liar if I said trading did not involve some level of hard work and effort. In all aspects of life, if you want to be good at something, it takes commitment and time to learn your craft. This is certainly no “get rich quick scheme” and I advise you to ignore anybody who tells you otherwise. If you have aspirations of just rolling out of bed, clicking a few buttons and doubling your account in the blink of an eye, then I am sorry to say that you are misguided. Don’t fall into the trap of thinking trading is easy, but take comfort in knowing that it can become easy over time, only if you keep things simple. Anyone can be taught by a master, but this does not lead to mastery itself. That is completely dependent on the student’s willingness to learn, observe, learn and make the effort. This is not a game of passive learning, but rather an art of active participation. Instead of searching for the non-existent Holy Grail, realize now that the real secret weapon is just all in your head… The real difference between a novice and a professional trader is that the latter knows the rules and sticks to them, while the former knows the rules and tends to ignore them… And if you were thinking that the more hours you spend in front of a screen, the better you will be, then you have been truly misinformed,” explains Sam Evans, a Forex trading instructor. Every successful trader knows: the proper position size for any trade setup on any timeframe is one of the most important keys to long-term success. You got to have modest and realistic expectations. The markets eventually reward those who show an earnest quest for trading mastery.
This year is full of wonderful opportunities on the markets. There would be losers: there would be winners. And we’d like to belong to the group of the winners. There are effective strategies that can be used to generate income, apart from the one I have now. Two of such wonderful strategies would be revealed within the next two months, while giving you access to how they’re applied on the markets. I truly consider it an honor to be of service to my clients and stay in touch with them. Few things are more fascinating as making money in trading after you know the secret of successful trading. But some people mayn’t be pleased that you’re trading. Don’t be discouraged. Your hope of enjoying financial freedom eventually depends on doing the right things on the markets.
NB: My article next Sunday would deal with drawdowns on trading accounts and how to handle them.
Another 2 quotes from Dr Van Tharp end this article:
1. “Without a proper mental approach to trading, someone trading a “Holy Grail” system could produce mediocre results or even large losses.”
2. “…Most people are not going to make the effort to understand the psychology of trading—which gives those who do a huge edge in the markets… Most importantly, the human brain is wired such that the average person is inclined to trade poorly without ever understanding why. Psychology matters more to traders than to perhaps any other income producing activity. Ignore this at the risk of your own financial peril.”
Your questions and opinions are highly welcome.
With best regards,
Forex Signals Strategist, Funds Manager &Coach
Yahoo! Messenger ID: saazalmu
Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
And my past articles are also available at: www.ituglobalforex.blogspot.com
NB: There is risk of loss in trading, but it is possible to be a successful trader.
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