Hard Truths About Forex Trading – You Will Fail At Forex Trading If You Lack These

Most of the people think that Forex Trading is easy and capable of making quick money in a short period of time. This is one of the reasons why only 5% of traders succeed and most 95% fail in the Forex market. On top of that, many people lack a mindset that is essential to successful Forex trading. Below are the 4 factors that most people lack:

1. Discipline – This is a very important factor. Whether you are able to maintain successful Forex trading in the long term will depend on this. As a disciplined trader, you must follow the rules of a Forex trading system and don’t break them. But, on the other hand, you do not blindly react to the signals that appear in the trading system, you also need to understand the conditions of the Forex market. For example, you may not want to go long GBP/USD, when there are weak economic concerns about the UK market.

2. Trading Psychology: Failure to control the greed factor could lead to the downfall of your trading career. Always be satisfied with the profit target you have planned and forget about the losses you incurred from a failed Forex trade, there will always be more trading opportunities. Another bad habit of trading psychology is the fear of losing a trade, which means that people may cut losses sooner or later. Leave it all up to the target profit and loss limit you’ve set, which means you’re consistent in everything you trade.

3. Money Management – ​​Forex trading is also about how well you manage your money. Do not trade your entire capital, but only the amount you can afford to lose. Plan how much you are willing to risk per trade. I would recommend trading with 1% to 5% of your trading capital per trade. This ensures that you have enough money to trade Forex when you lose something.

4. Consistency – If you can be consistent in the 3 factors above, then you should be making profits in Forex Trading, and consistently. A Forex trader can make a large sum of profit in a short period of time, but if he lacks consistency, I can guarantee that the trader will not be a successful trader in the long run.

I understand that as a novice trader you may find it difficult to follow the above 4 points. I have been through that too. This is why trading Forex is not as easy as you think. But by learning to abide by those rules and following my Forex Trading guide, which teaches the Forex trading system, I can be sure that through hard work and determination, you too can be one of the successful traders.