Don’t forget to leave your comments below, I would love to hear back from you guys and your own experiences about your journey and the most valuable lessons you have learned over the years.
I have often talked to people on the phone who have just lost a bunch of cash in the forex market. One comes to mind of a gentleman who took out a bank loan of around $120,000 USD and within one year had his trading account up to 250,000. Although, this wasn’t a success story because as he starts telling me how he got the account that high, you could hear his voice start to change as you just knew what he was going to say next. And then he said exactly what I was expecting… “But this last year has been horrible, I’ve given all my profits back and now I only have $1,000 left in my account. Its only now I realize that I know nothing where before I thought I knew it all”.
One of the worst experiences a forex trader can go through is actually making money at the beginning. Reason is, you develop a pretty big ego, you think your smart, you gloat about your winnings, and you have zero respect for a trade plan, because you think you know better. So for those who started off this way, its going to probably take you 5 times as long to undo all those old habits before your able to take a clear approach to the market and be successful over the long term.
Now, for those who are losing money, or in the process of losing money, there is hope for you. That’s because you’ve already been to the bottom and hopefully you will see this and bounce. If you still are not changing what you are doing and chasing after the market while your taking over leveraged trades and not managing your risk, then perhaps you have a bit more learning to do, or money to lose… but at some point, deep down in each and every one of us, you can change, but for some, the losses need to be bigger for us to get the point. But more importantly, you will gain respect for the market!
So no doubt I’ve ruffled some people by now, and I apologize, my intent is not to make you seem like conquering the forex is impossible, hard , or to justify your losses. But there should be a few key take away items that I want you guys to really think about over the weekend:
1) Have I hit bottom, so low, where changing the inner thought process of trading is actually possible?
2) Can you go on in your trading career realizing no matter what method you trade, taking to much leverage will kill your account and not managing your risk (because that is the only thing you can control) will ultimately lead to your failure.
3) Have you learned to respect the market?
And now that I’ve gone through most of the hard news… for those of you that have been here, that have probably seen a lot of truth into this post… congrats!
But for those of you who aren’t quite there, most of the people that trade the forex give up before they have an opportunity of success. They go to a system, try it for a month and expect to be an expert. Don’t give up… part of why the statistics of a forex trader are so high is NOT because people can’t do this, its because they give up before they are able to be successful!
You have chosen a hard road, but one I believe many of you can accomplish, and the rewards will be plenty!
Harmonic Trader & Mentor @ FXGroundworks