Here we will look at Forex trading education in terms of 3 beliefs most traders hold about trading currencies which cause equity wipe out, if you believe any of them you will lose, let’s take a look at them.
In a moment, we will look at some tips on how to enter the elite 5% of traders who make big gains but first, let’s look at how to avoid the vast majority of losers.
1. Cheap Forex Robots Make Huge Gains with Low Drawdown
Most of the cheap Forex robots you see, promise you a huge regular income with little or no drawdown and no effort and most have track records which would make George Soros look an average investor and it’s no surprise they all lose money. There are a few good ones about and they will make you around 100% per annum but drawdown, will be in the region of 30% at some point and a losing period can last for months. Only use robots with real time audited results, trade for the long term and don’t look to get rich over night.
2. Hard Work and Intelligence Will Help You Succeed
Hard work or being clever count for nothing in currency trading – you are only judged on the profits your trades make not the work you have put in Furthermore, the more profitable FX trading systems are simple and robust, make your strategy to complex and it will have to many elements to break. Anyone can actually win with a simple system and in terms of Forex trading education, you should work smart, not hard.
3. If You Have a Good System You Will Make Profits
This statement is not true, because even if you do have a system which can make money, you have to apply it with discipline and it’s a fact that most traders cannot do this. The reason is – they let their emotions get involved and they start to run losses, engage in revenge trading to get losses back and generally over leverage their accounts which leads to an equity wipe out.
If you can’t follow a system with discipline, you simply don’t have one!
How to Win
Focus on learning a simple system, you have confidence in and adopt a disciplined mindset. Trading Success is as reliant on mindset as it is on method but the good news is adopting a disciplined mindset is a choice and anyone can get the right mindset for success and enjoy big Forex trading profits.
By: Kelly Price