Reasons Traders Fail to Make Money Trading
We have all heard the statistic that something like 80 to 90% of traders doesn’t make money. So, you have two choices give up your dream of staying free from work, jobs. And the drudgery of modern 9 to 6 society, or try to understand why most people fail at Forex trading and work to make sure you are in the top 10 to 20% of traders who actually make money.
You have to look at yourself and decide what you want to do. Do you want to submit to the modern-day ‘restraint’ of bosses and jobs, or do you really want to have a crack and commit to studying how to trade and achieving consistency at what is really the profession that can give you true freedom?
Here you Learn some solutions of Forex Trading System
Problem 1: Not demo-trading first
Why is not demo trading first, a problem? Well, you need to learn how the trading platforms you are using works before you try entering trades on it. You would not want to lose money unnecessarily just because you did not fully understand how the trading platform works.
Next, trading live before you have learned how to trade your method, is a recipe to lose money. You need some screen time and to get ‘runs on the board’, as well as some consistency, before doing to risking real capital in the Forex markets.
I don’t suggest spending too much time demo trading. However, 2 to 3 months is the ideal amount of time after you learned a trading strategy. But certainly, before you try real money trading, you need to demo trading method to get familiar with it. It will help you avoid losing money foolishly. Or course, real/live trading is going to be the best teacher of all because the sensations of having real money on the line are present, but that does not mean you should rush into it without practice.
Solution: Get a demo trading account
Here, I advise you to open it up and to get familiar with it placing trades on it while studying my trading strategies.
Treat the demo account like it’s your real money, even though it is not. The more closely you treat the demo account as if it’s real, the easier transition will be when you eventually move to the live account.
Problem2: Focusing on money not trading
Most people only focused on money and profits that they lose sight of what it actually take to achieve them.
Do you think a professional football player or golfer is thinking about dollar signs and profits in the heat of a tournament? No! I can assure you they are not. They are only focused on the game they love and are passionate about and how to good perform. He is thinking about the mechanics of the game, his mindset, his process, etc.
Similarly, if you are overly focused on money and not the mechanics and process of trading, you are not going to be in markets to be very long.
Solution: Focus on the journey, not the destination
The solution is to realize that to make money trading simply, and you can’t always be thinking about making money. The purpose is to make money of course, but the journey is trading, and without performing the journey properly, you won’t ever make money. I get emails almost every day from the beginning traders questioning me how much can they require to make per month or how much should they risk. These are the incorrect questions to be asking. What they should be asking is, “how do I trade correctly?”, “how do I learn to read the charts?”, and similar questions.
It looks trading is about speculation and making money, most people don’t want to concentrate on the mechanics and process, but without concentrating on those things, you will never make it. You have to be strong about trading, about playing and winning the game, not only about to make money.
Problem 3: Trading without professional training
Trading without the professional training, not obtaining real trading knowledge, and failing to learn skills before going into the fight of trading, is a killer for the trader and their account.
It never fails to perplex me how or why anyone believes they can master at trading before they at least have acquired a solid price action based strategy. I believe everyone needs professional training and to obtain real chart reading skills before they can too hope to have a chance at making money trading. Financial market speculation is not for the weak-minded, and you really need a guide and solid education before you go risking hard-earned money in the market.
There is no other serious profession on Earth where people think they can avoid professional training and anyhow become successful. Whether it’s a professional athlete, a doctor, lawyer or anything other, they all require training by a professional
Solution: Learn from a professional
Learning from a professional is essential for learning any skill. You want to give yourself the best chance at winning in the market, and that means learning how to trade from one who has already made all the mistakes that you will make and can teach you how to avoid them.
Remember, when I first started my trading career and I also have experienced most of these problems along the way. It is not enough to be aware of the problem, and you must implement each solution consistently.