What are the secrets of successful traders?
I get asked this question and variations on it almost every day. The question usually comes from people who have been trading for some time and have found it difficult, almost impossible to stop making big losses in the market.
New traders ask a different question: 'How soon can I start making a living trading?' or 'How long will it take me to make x Dollars?' and a variety of other questions.
The big difference is that those who have been trading for a while have realized that although they are losing consistently, there are some traders who make regular, profits, day in and day out, whereas newbie traders are often confident that they can make a killing, it's just a question of learning x,y,z applying it and Bob's your uncle. Those who've been around for a while, know they need to know more, but are often angry that what they do know doesn't work, that they are in a constant state of flux, throwing good money after bad.
Now, the truth is that there are absolutely no secrets to successful traders, like anything else, some have the skill, some have not. That said, almost anyone can develop the required skills, but most are lazy, they buy or download some free of $50 system, use it to lose a few thousand Dollars, get frustrated, angry and lose whatever consciousness they had in the first place.
Every move of the ticker, every tick on the chart is a punishment, an evil entity trying to take everything they have, their money, dignity and pride. Everything then becomes personal and the traded instrument is the enemy which must be defeated.
The problem is that this state of mind is as useful to successful trading as an anchor is to a drowning person, however, when that is all someone knows, the familiar emotions of anger, blame, pain and suffering become a friend to the drowning trader. They hate trading, but having started, given up a business or a job, they are determined to succeed and yet like Lemmings, they keep falling off a cliff into the turbulent sea below the cliff.
At this point the mind of these traders becomes fixed, it sees only one solution, keep throwing in more money to try and save the lost money, like gamblers in a casino, they keep chucking in their money, just one more time, this time it will work. Trouble is it never does and we know who collects all the money in the casinos, and it sure ain't the punters.
Bleak, well, may seem so, but is there a solution? A way out? Can you finally become a decent trader?
First, you need to ask yourself, why are you trading, if the answer is that, you are only in it for the money, you will struggle. This is true for most things, money is not a goal, money is really not anything, it represents the energy that went into providing some value, an exchange.
If you unwilling to spend time and money on improvement, forget trading, it's like any other profession, you need ongoing training and refreshers to make sure you are not stale. You must, not only be willing to buy new books, courses, indicators and systems, but actively seek them, actively seek to improve both your methods and yourself, and the latter is by far more important.
Let me give you a personal example. About a year ago, I got interested in Internet Marketing, I bought a few books and course and started putting together some websites to sell affiliate products. I had no interest in the products I was selling, I didn't need to lose weight then :), not so true now, but that's another story, I wasn't interested in dog training or teaching a parrot to talk. Needless to say, these site barely covered expenses. However, when I set up this blog, my trading blog, I did it basically for myself, it was a way to force myself to write down my Forex Trading Methods, my psychological obstacles, and be open about what works for me and what doesn't. I had bought a few products, which I liked and found useful, so I placed either reviews or links on this site. In a short time I sold more of those that any other affiliate products I'd sold thru my other sites.
Now, it's clear to me, the products I buy and use and like, convey the energy and love I have for the art of trading, so people feel it and buy them. Don't get me wrong here, this website is not about selling you stuff, I am happy with the money I make trading and I also act as an analyst for broker, so any money I make here, is to keep this site going. My intention is to make money trading my money and acting as an analyst for others.
Intention is very important, if you do not have a strong intention to trade well, you never will, but you will need to supplement your intention with education, methods and self improvements.
Over the next weeks and months, I will be documenting everything I have done to become a good traders, what I went thru and how I've overcome some serious setbacks, and know this, setbacks are as much part of life as breathing is. Everything we experience is part of what makes up our existence, you can't pick and choose, I'll only have this and not that (emotionally), but you can learn to become conscious and aware of what happens, then you decide if you want to let the dark control you, or you'd rather simply shine a light on it.
Darkness is not a substance, it is simply the lack of light, and one tiny match can illuminate all the darkness in no time at all. This applies to your trading and is simply a metaphor, I will discuss it more in future, but here is a thought for you.
We all know that for every action, there is a reaction, if you pull the string of a bow back until it is taught, when you let go, the string to will revert. This is true when trading, if a price moves fast and pull away from the mean, it will react, and these sort of trades are easy and plentiful throughout the trading day. It may not always be blindingly obvious but it can be learned quite easily and I will here. Just to show you what I mean take a look and the chart below, it's a 1 minute chart of the Euro and see what I mean. The arrow are areas of extreme pullback, long or short, of course your chances are much better trading with the prevailing trend. To see more about this scalping method see the post about Scalping the Euro.
Make Sure You choose a Forex trading system that is right for You and your own temprament.
To watch the videos about this topic click here ==> Why Traders lose money
and here ==> Why traders lose money part 2
Lies and More lies, Secret Millionaire speaks his mind.
100 Pips a day Set and Forget
- Forex Charting Success - Simple Tips on How to Make Huge Gains Using FX Charts (forextradingspeculation.wordpress.com)
- Taking profits in Forex (forextradingspeculation.wordpress.com)
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