The Shocking Secret Why So Much Traders Fail!

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The Shocking Secret Why So Much Traders Fail!

 

I’m really sick of so much people telling me from day to day that trading is hard, that they lose all of there’s money! So I decide to give you the “Secret Answer” why more than 90% people fail in the Forex game! Take few minutes of your time to read this article to the end and I’ll bet you will start looking at the Forex with different eyes…

It is really shocking that so many traders fail in this business, but if you have opportunity to meet some of the traders who losses there account you will find that all of them have something in common:

Secret #1 – 50% of traders I spoke with start with Real Money after testing just Demo account!
Trading live and trading on a demo account are two completely different things, first and most important thing that separate trading real and demo is feeling of losing money! When your first trade got executed, small voice inside your head start telling you to close trade because your trade is going on the wrong direction!

Ok fear of losing is just one thing why people lose money, but second and more important thing why this 50% people lose money was lack of the education. Trading require a lot of learning, this is not the game that you can master overnight, none of the traders I spoke from this 50% group bother to read just 1 book on trading and they just wanted easy money!

What Should You Do In This Situation:  Testing demo account is good thing really, but it is meant just to give you feeling how money work, so grab few books on trading from amazon and start reading, after you finish reading test some of strategies on live account for 30 days and if you make some money open small account: 100$ not more and try same strategy on this account, if after next 30 days you showed some good results you can add one more zero to your account, but remember don’t stop learning (always read more books, or watch some video that will improve your trading).

 

Secret #2 – 20% of traders I spoke with start with used Expert Advisors
Experts Advisor or EA become much popular with new traders, everyone this days prove that have 100% winning robot and they are selling them for 50-60$! Just ask yourself if you have 100% wining system should you sold it for 50$ when you know that every hedge fund will give you millions of dollars. In my now almost six years carrier as full time trader I never meet anyone who showed me EA that make him money on the longer term basis! So to look at this second group they all want to relax on beach, go to parties and robot should make them 100% every month! I don’t want to say that not every EA work but I want you to be clear that trading forex can’t make you rich over nigh it require a lot of discipline and hard work, so it is a better to look for good education than invest money in EA that don’t work

What Should You Do In This Situation:
If you want to use EA, my suggestion is to learn first how to trade because you need to understand how your Expert Advisor really works! Find manual system that prove profitable on your own testing with live account for at least 6 months and then you can hire someone to code EA for you (this way you’ll have more chance making money  with automatic trading).

 

Secret #3 – 25% of traders I spoke with think at Forex as Las Vegas
Casio is the place where you go and try your luck on roulette you have 50-50 chance of getting profit if you are playing roulette and bet on black or red, but as a trader you can’t make forecast like that, market follow the rules, it doesn’t matter if you are using technical or fundamental approach when it is a time to place a trade, there is rules that you need to follow if you want to make it in this game! So this 25% of traders used just 1min or 5min price action and if gold was moving up they will buy it, none of them used stop loss or profit level, it was just buy and hold as much as I can, price must return!? This is just BS in my humble opinion,  you want to succeed you need to work hard, practice put as much time as you watch tv or drink with your friends in learning and you will make it!

What Should You Do In This Situation:
Stop Watching Forex as Las Vegas, Forex or Stock trading is world class business, only thing that this two have in common is that everyone can try and that’s it! When you start looking at the Forex as your day job and start spending 8hours in the office you will easy see that this can maybe become your full time job opportunity.

Secret #4 – 5% of traders I spoke with Don’t Follow Basic Rules
Everyone know that trading is the game of buy low sell high, but when it is a time to do this people somehow fail! I know it is a hard to find the place to enter a position, when this 5% of traders showed me there chart I saw that they used proper systems but all of them was buying at the highs, for example if they see the EUR/USD pair pushing higher for few days and they see uptrend they just buy, they all had a stops and what happened is that price retrace hit there stops and from there EURO continue to push higher!? Is this sound familiar to You? I know when you see good trend forming that it is a sign to stay with a trend, but if you just wait for pullback (usually you can see 3-7-11 swings pullbacks) and then buy or sell you’ll have more success rate!

What Should You Do In This Situation:
Patience are some of the most important habit of all successful traders, learn to find entry points with Fibonacci tools and Elliott Wave Theory and I’ll bet right now you will have more than 80% of chance of winning the trade you want to be in!

I hope you enjoyed reading this small article and more importantly I hope you learn something that will guide you on the right side of the market! If you think I miss something or you just want to add more things that every trader should know just post it as comment so my visitors and friends can benefit from your knowledge!

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