Foreign Exchange creates more failed traders than successful for one simple reason. You can make an absolute fortune for yourself by Forex trading (you will see for yourself very soon). Price moves so substantially and rapidly that it leads to pure greed, you will sit and watch the movements and think “I could be making so much money”.
The overwhelming emotions that you will feel when watching the charts will make you want to enter a trade every time something goes up or down, this is just one of the many emotions you will need to control, if you want to make money in Forex trading.
Why Trading Less Leads To Bigger Profits?
So what is the secret?
The secret is… to only pick the ‘better’ ones. You will learn to restrict yourself, based on a set of rules that you will be taught, to only enter the trades that are more likely to reach your profit target, and at less risk. This works to improve your winning percentage over time, and it will grow your trading account much faster than if you made 1,000 trades a day.
This will take patience, and above all discipline. It is the sole reason that initially you will only risk 2% on each trade – as it will take you time to be able to master it.
No One Is Immune To Over Trading
Losing money is much easier than making it – it is true in real life as well as in Forex trading.
At some point you will catch yourself saying things like, “I’m not over-trading, I am taking advantage of the Forex market” or “this is a once in trading lifetime opportunity, it is never going to happen again!”. You are not taking advantage of the market, and it is not once in a lifetime.
Large Moves In Forex Happen Every Single Day
You cannot control the market with your trading and you cannot make up for previous losses by trading more. The Forex market does not care about you, it doesn’t care that you are down to your last £10 from a £50,000 account, it doesn’t care about your emotions or your life and it is certainly not going to change to help you out. The Forex market is not a living entity, it is simply a world-wide monster, where people have access to huge amounts of leverage, financial opportunities and failures.
Your success in Forex trading comes not from the Forex monster being nice to you, but from you conquering your own mind. Your success is controlled purely by you.
You are not competing against other traders, you are not trying to beat the broker or the computer controlling the prices. The only person that you are competing against when you trade is yourself. You can only beat yourself through controlling yourself, and you control yourself by having a plan, a trading strategy. You will learn to have full confidence in that strategy and to react to what it tells you without thought or delay.
You will not become like 95% of the other traders, you will not over analyse what is happening and what is going to happen. You will not let the market dictate your feelings, or control your emotions and above all you will not let the market break your discipline.
So, Now Tell Me How To Do It?
- Not being in the market is not a bad thing – If you don’t have a position on it means you are not losing money – that means that you are 50% of the way to making money! If you were to be over trading you would be losing your hard earned money very quickly, always relate money to real life – how much time in your real job would it take you to make up for the losses through your over trading?
- Your time not trading is not time wasted – Whilst you are not trading you can be doing some back testing or demo trading. I am continuously refining my trading style, tweaking the rules to lock in more profits, or making the risk/reward ratio more favourable. I just have the discipline to do it on a demo account until it is completely tested!
- Whilst you are not watching the charts you can actually do things in real life – You do not need to be sat watching every movement in the price to be able to trade – in fact to a certain extent, the more time you spend not watching the trades the more money you will make.
- The Forex market will always exist – There will always be opportunities for you to make money in Forex, there is never any need for you to rush into a trade or to over trade. (I know that is easier to say then do…)
Once you reach the point of being able to trade as described in this post you will realise that you start to make more money, and faster. Most new traders (without training) never make it to this realisation though, they never overcome the emotions.
The strategies that you will learn throughout my Forex course rely on nothing but simple trading methods, using the price to determine your actions – and not relying on complicated mathematical indicators.
If You Want to Become a Successful Forex Trader, You Must Join AndyW Club.
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