Updated from its original posting on At this rate, you might have a better chance of surviving the Hunger Games than becoming a successful forex trader! Although he draws his conclusions from his experiences in stock trading, the lessons are generally applicable to forex trading as well. Acquiring the necessary trading skills is the easy part, but if you are unable to apply these in the proper context, your skills alone will not generate your desired profits. At the end of the day, it is still the market that will dictate price action so traders who regularly disregard what the market is telling them often end up failing.
Without curiosity and enjoyment for the craft, traders would hardly be motivated to pursue deliberate practice and skill development. This explains why most aspiring traders simply decide to give up and pursue something else entirely. Believe me, it will take a lot of time and ego-crushing losses before one becomes a consistently profitable trader. There are many things that can be done to speed up the learning curve, but there is no way to completely eliminate it.
Some newbie traders make the mistake of thinking that, in order to be successful, they should never incur losses. Consequently, they pressure themselves too much and take it hard every time a trade goes against their way.
To avoid their fate, you have to accept that you will face losses. You will experience losing streaks and undergo drawdowns which will probably make you feel terrible. Whether you like it or not, you will be on the wrong side of a trade in some instances. But you know what? Even the best forex traders out there still experience these things. Not everyone is entitled to make it big. However, you are entitled to work your butt off, train well, and realize your potential to become a good trader.
It sucks to be wrong. This is why so many people have a hard time swallowing their price, admitting their mistakes, and moving on. Often in forex, traders develop a bias on a currency. They stick to their trades, insisting on being right and refusing to exit their already-losing positions. Successful traders know when they should exit a losing position and they are able to do so quickly.
To be consistently profitable, you should always look for making good trades and accept the fact that you cannot control results. By learning from the common sources of failure, we can know what to look for in our trading habits and know what to avoid. That way, before we even hit the wall of failure, we can already correct your behavior and mindset. Just remember that success in forex trading comes down to listening to the market, loving what you do, setting realistic expectations, and being open to admitting your mistakes.
Shoot for the moon. Even if you miss, you'll land among the stars. Partner Center Find a Broker. If you can't keep your emotions in check when trading, you will lose money.
The most significant action that you can do to improve trading profits is to work on yourself. Really knowing yourself and how you think can give you an edge that others in the market don't have. My goal is to share practical advice to improve your forex psychology without boring you to death. Hopefully, you can develop the mental edge you need to become the best trader you can be.More...