What do 98% of the traders do? Give up? Yeah, some of them do that with the first taste at failure, other just keep on spending money on the hope of hitting their big jackpot. Not even 2% of them make the cut.
Depending on others choices and decisions is what other traders do, they create a social trading account and sit there waiting for returns. We live in a world of smartphone, where everything is at our feet, just a click away, but that’s not the case with trading, of any kind. You can’t expect that suddenly you will wake up as a billionaire one day.
Like any other field of life, in trade also there are only two mantras to success in trading are hard work and preservation. Being good at trading is a continuous process of wanting to learn more and more of how market functions. That is what the best in the business do. Success here also depends on how well are you able to find a system that works for you and how consistently do you stick to it. It is like an extended limb of yours.
Are you struggling to find a way through? Before you do anything, you should prime your mind.
Trading is like a game, a psychological one. Where you have to choose a side, either you are with the mass sentiment or against it. It is like a mirror image of other traders.
One thing trading is good at is that it can pull you down very quickly, once you start losing (which is very common) you get discouraged very easily and quickly, it gets hard to keep up with trading. It gets effortless to give up on trading with losing money at it.
To help you keep a winning mindset here are three things that will help you.
1. Know what you are trading
You want to trade a specific trade, well! You should learn what factors guide the price in this currency pair. Just relying on technical indicators will get you on the long road. If your goal is consistency, you need to take out time and learn deeply about currency pair and the security you want to trade in.
Mostly, traders, these days focus only on the security they want to trade or the currency pair because they think they can multiply there money quickly this way. It takes time for them to realize that all this does is empty their pockets.
To understand this point, take the example of the EURCHF peg that was broken in 2015. While it left many traders in a state of surprise, history reflects that it was now the first time that SNB was able to pull that off. Thus, only trades who had done an in-depth study about the history of currency pair were able to take its advantage, and all other only has the technical indicators to rely on to, with their deep greed to earn quickly.
2. Make a commitment and stick to it
Consistency is what gets a trader to it. You have to find a strategy and commit to it. The ones who jump from plan to plan end up getting nowhere. They’ll just be spending money.
If you want to succeed in this game, you have to start by building your very own trading system. There are loads of options to choose from. There is only one distinction between a good and a bad trading system, and that is your knowledge about the trading system.
With the first sniff on losing, most traders are quick at changing their strategies. Doing this doesn’t take them anywhere all it does that it restricts them from have a better understanding of the trading system.
The way you lose can only guide you to the road to victory.
3. Don’t give up
If you believe that you can own a yacht within one year of trading, well that is just unrealistic. The way to success goes through a lane of not giving up. Not giving up is the only way the markets work in your favor.
The time periods vary with each trade, some make the cut in a year, while for some it might take three. But the only thing that is common between all the winning traders is the spirit of not giving up. Not giving up is the only thing that helps the trade to make that 2% cut.
Forex trading is often glamorized, and it plays on the mind of the trader. It is a mirage of making money; most traders fall prey to the trap.
If you want to make the 2% cut and be consistently profitable, all you got to do is take a serious step towards learning; you will eventually get good at trading. You’ll have to keep on learning of how the currency market works and what are they, and it will guide you to a road of success.