On the Internet, many so-called opportunities in the field of forex trading and futures trading promise great riches for very little work. Statistically, 95% of beginner forex traders fail and quit. In this article, I hope to give some sane advice to increase this percentage for everyone’s sake.
If you’re like me, you’ve been attracted to futures or forex trading because both financial fields offer highly leveraged results, which means that your profit “potential” in the short term is very high.
Human emotions such as hope and greed are triggered at this stage because you see an opportunity to escape your daily grind and achieve a better life for yourself and your family. There is nothing wrong with that, but at this point, I need to inject a dose of reality.
Remember – 95% of beginner forex traders fail! I will try your patience and repeat this.
95% of all beginner forex traders fail! This also applies to futures trading and pretty much any kind of speculation.
The exact reason for this is that they were sold an idea – a profit potential and they just look at the target. Now, this is fine, but all goals to be achieved involve doing something. There is no free lunch in this world. That is the point that is not being faced. You have to face this point if you want to have any chance of success.
Several things are working against us and it is not just trading skill that needs to be developed.
1. We are used to getting something for nothing. Even if we win in trading, we will believe we are getting free money and unconsciously give it back.
2. Even if we are educated, we have no experience. Knowledge without experience is shaky!
Therefore, we must have at least 2 things to counter these negative factors.
1. Trade on a demo account for at least a few months and profit from it consistently.
2. The discipline to follow a trading system
3. A Money Management plan and policy.
Without at least taking these steps, you are on very shaky ground and you could be moving very quickly toward the 95% class.
I want you to be in the 5%.