Lets look at the ability to keep aiming for a goal despite setbacks and understand why even if you fail on your first attempt to achieve trading success, you should persevere in your quest.
If it First You Don't Succeed Try and Try Again
There are many people who failed to achieve success in their chosen profession in many walks of life but through perseverance and trying again to reach their goal they eventually succeeded and became successful and this happens a lot in Forex trading. When reading about some of the world's top traders, I was struck by how many of them had not only lost all their trading capital once but on several occasions before they became successful traders.
So why do so many new traders fail to succeed when they first start trading?
There are two main reasons the first is – they simply haven't got the right education and try strategies which are doomed to fail due to the fact they have poor money management, no trading edge or both. The second is traders have a problem with, controlling their emotions and trading their plan, with the required level of mental discipline needed to make profits.
Perseverance – Learning the Basics and a Method for Success
Both problems are common and the first is the easier to solve. This because all it requires is that you learn the right knowledge, rather than commonly accepted wisdoms or the hype and lies, from all the scammers selling sure fire and easy money making systems Trading plans that work and systems which make money can be very simplistic and are easy to learn Forex trading is one of the businesses, where simple methods can give you huge profits and the right education can be found for free online.
All you need to do is search out the trading strategies of the world's top traders, and learn a simple system based on technical analysis of charts and you can then, develop a method which has the potential to make profits. Now I say “potential” for a reason – FX trading systems don't simply make money on their own. The operator of the system, has to execute in the correct manner so that it does make money.
Now this sounds simple and in many areas of life it is – you learn how to do a task and then simply follow simple steps and the task is completed successfully. Sure you have to learn the skills to do the task but if you have learned them the expected outcome is achieved. Good examples would be- fixing a leaking pipe, baking cakes or driving a bus, to name just a few but Forex is a very different business altogether.
You can have the skills to win and have a trading system with an edge which can make profits but you won't complete the task you set out to do all the time I.E. You will have winners but you will have far more losers and this is using the same system and having learned the skills you need to win.
No Guaranteed Result - the Psychological Problems All Traders Face
The problem is there is no guaranteed outcome in trading currencies and this creates, a unique challenge for traders which is to maintain discipline and persevere through losing periods until eventually, the losing run ends and profitable trades are made. In a losing period though, persevering can he hard because your emotions are telling you to – deviate from your system rules, change the rules, change systems or just quit altogether.
There will be losing streaks and to win you need to persevere through them but its inevitable that when you are first trying to deal with the psychological pressure this creates that you will make mistakes and these mistakes will cost you money. It doesn't mean you can't win longer term, it just means your getting used to the unique experience which is trading money under pressure. You are operating in a world with - no structure, no logic and where there are no rules except the ones you have created to survive and hopefully prosper.
You will often read about great traders who simply got wiped out because they make mistakes such as – not using a stop over leveraging etc but once they had the experience of it and how it felt they corrected their error. This is just one example but when your trading under pressure and executing your trading signals mistakes will happen. The important point to keep in mind is - to learn from any errors or mistakes and persevere.
It can take many months to years to get right psychology and we have covered how to do this on other areas of the site but the fact you make mistakes, take losses or even get wiped out – doesn't mean you can't be a winner if – you learn and correct the mistakes made.
Getting the right trading system is more about getting the right trading education and if you do your research you will generally find the knowledge you need to put together a trading method which can win quite quickly. You might have to persevere and tweak your techniques a bit but this shouldn't take you to long.
The search for psychological control though, can take a little longer because you don't know how you will perform until you feel the experience. You have to feel the experience and learn from it.
In conclusion, don't be put off by set backs or because you made mistakes, simply persevere and learn, from the mistakes you have made correct them in terms of method or your mental approach and you can be a winner, trading global currencies for big profits.