Someone reading my previous thoughts about FX markets could have been scared. I didn’t intentionally want to scare anybody; I was only telling you the reality. I like to treat others as I’d like them to treat me. I don’t want to tell me lies in other to get people interested in something or buy a product, neither would I like anyone to do that to me.
There is no risk-free business or activity under heaven. When it comes to forex, people always have a wrong approach, no wonder over 90% of traders aren’t surviving. We are talking about the majority of traders here; doing what are popular. I’m saying what isn’t popular, and for you to survive the markets, you need to do what the majority don’t like to do. I was a novice trader for a long time, doing what seemed the right things on the market (though I’ve never blown a live account, I only sustained significant drawdowns on live accounts in the past). I spent a fortune on buying trading systems after trading systems and thinking I could gain hundreds of percentage returns per year. Yet I was not making money in the long run.
What are my beliefs in those days?
1. I thought markets were easily predictable.
2. I thought the secret of my success lied in a great trading system.
3. I thought I could always made 100% per month, and if I couldn’t do that, I get frustrated.
4. I didn’t care about risk management.
5. I was not disciplined.
6. I thought forex required only a brief training and you could then start smiling to your bank. I even thought I did not need any experience at all.
All these beliefs were imbibed from the words I heard and read from marketers (most of whom are posing as professional market players).
But now I believe that:
1. You can be an effective trader, though the markets are unpredictable.
2. You need a system to play the markets, but the key ingredients to your success are: Cut your losses short and let your profits run, positions sizing (with risk management) and discipline to follow the previous two principles. Your trading system isn’t the ultimate secret.
3. Making hundreds of percentage per year is always an illusion. You might only be lucky by risking too much and doubling accounts, but markets would soon take them back. Good traders can survive bad markets without losing their entire capital.
4. Unless you have rock-solid discipline to follow signals from good traders or get coached by them or duplicate their trading styles, it would take you years to become a successful trader on your own.
Please do not fear the markets. F.E.A.R. is False Evidence Appearing Real. Forex is very good provided you have the right attitudes (which aren’t popular).
Please see the two quotes below.
‘’Forex currency trading is one of the most exciting investment available anywhere. Not only does it offer huge profit potential when approached in the right manner but it is one of the most exiting and thrilling thing you can do anywhere. Once you taste success trading currencies you will be hooked.
However, this is where we need to sound a warning. Forex is not without financial risk. Where substantial profits can be made, substantial losses are also possible. Thankfully, features like stop-loss can help limit risk but we still urge you to use extreme caution when trading.
Start off slowly and build yourself up, take time to educate yourself and ensure you trade wisely. If you do this and you take the right approach then forex could be the best discovery you have ever made.’’ —- Mr. Paul
‘’Novices must carefully evaluate trading as a career or profession before they venture into it. Trading is the most difficult profession and success could be elusive for a long time. But for determined and disciplined traders, it offers great rewards. Excellent trading knowledge, hard work, education, discipline and money management are keys to any trader’s success. Traders should be prepared to be adaptive to any market condition and continue to learn from the markets. I have also found that being humble and honest helps trading significantly.’’ — Suri Duddela
Your questions and opinions are highly welcome.
Forex Signals Strategist, Funds Manager &Coach
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