Students and acquaintances often ask me to teach them Forex
trading techniques to profit in the Forex market. Is there such a Holy
Grail that can provide guaranteed winning trades? I listen as an
acquaintance continues to complain that he is losing too much money,
that he is never on the right side of the market, that he keeps making
the same mistake repeatedly, and why does he keep getting stopped out?
After about 30 minutes of his ranting, I interject and tell him that
maybe he should start learning about trading psychology. With a
disappointed face, he looks at me dumbfounded.
Many Forex traders
give up after one year while some traders continue to jump from system
to system, looking for the ever-elusive Holy Grail. It seems that after
learning a number of different trading techniques, traders tend to
plateau, and are unable to improve, regardless of what they do. Somehow,
there is always a new trading course offered by a most successful
trading guru or an ultimate indicator claiming unparalleled results that
is a must-have.
The Forex industry is so polluted with scammers
and marketers that it is impossible to sort out who is telling the
truth. It is extremely sad to see so many people losing money in this
market; however, it is the greed that continues to recruit more
neophytes. It is like a gambler looking for an easy way in life to make a
lot of money in the shortest amount of time. There are traders claiming
that they are not gamblers and have never stepped into a casino in
their life. Welcome to the twenty first century, where gambling comes in
many forms, and the casino comes to your house via Forex internet
trading.
In order to gain an advantage in Forex trading, you have
to realize that what you need are not the indicators or ground-breaking
Forex trading techniques. The skills that you need to acquire are
discipline, emotional control, patience, and the right mental attitude
toward losing. It is about how you respond to pain and pleasure, greed
and fear. The keys to being successful in Forex trading are all
internal. It is not so much about finding the highest probability and
lowest risk point of entering in the market. Regardless what you do,
there is always a risk and a chance of losing. You must accept the
consequences of losing or being stopped out in the market. Lacking
emotional control will cause you to experience pain whenever your
account goes negative and experience pleasure whenever the account goes
positive. You have to realize that psychology contributes to 70 percent
of your trading success. If you don't learn the proper trading
psychology then you have diminished your chances of success.
Money
management technique is twice as important as Forex trading techniques.
If you rush to earn a lot of money in a short period of time, you will
take larger risks and are more prone to wipe out your trading account.
There are no shortcuts in building wealth, regardless of what industry
you are in. Whether it be with manual Forex trading or Forex managed
accounts, if someone claims to make consistent profit month after month,
then it is likely to be a scam because there is no risk involved.