Forex Trading – 5 Reasons You Will Fail at Trading Forex
I know it’s fun to be a sane, well read and smart indicator lover but I’m sorry to tell you that you’re about to see one of the worst decisions you’ve ever made. Trust me; this decision is bigger than you or me or many of the genius traders out there. See, when most traders start trading the forex market, they need to use their favorite indicators such as pivot points, oscillators, RSI, Moving Averages, MACD, Bollinger bands, CCI, (what’s that last one by the way.”The Closing price is the money” and it is your friend)? These are the indicators that traders as a rule use and they truly think that they can make money investing these lagging tools. Sadly, this is not the case.
Best forex traders
One of the best forex traders in the world, Donezileimate, once asked me how he can find his way to become a successful trader and how his success didn’t rely on any of his indicators. I’ve got the record. He said that he only uses some indicators and only uses them to try to determine the trend.
To put things in better perspective, does trading not depend on any of these indicators? And in these Jade noodles Lie, I can only say “Yes, Of course!”
To put things inGrains, the students of W.D. Gann, said this about his philosophy on the markets.
“The difference between a successful and an unsuccessful trader is in his way of thinking. He who thinks from the charts looks at the chart, not at the Indicators”.
To prove his point, he setup a complimentary account and pay get publications of his own creating the movement of the charts (takes about 1 month). Now how can a tool support you in finding your own success when it’s based on the charts that only you can create? You ask any greenhorn that has fallen of us to prove this point ever.
The best part of it is that his own charts are based on the actual price movement and you can look at these great tools. I am sure you will agree with me that using his tools you are on your path to your own success!
Another great advantage of his trading methods is that with them it isn’t about using certain indicators to confirm your entry to the market. It’s about using the indicators so that you can clearly see the REAL support and resistance of the market and place your own Take-Profit and Stop- Pursuit orders.
It’s all about understanding the current trend in the market and knowing your own emotions and mindset if you want to succeed as a Forex trader. The good thing is that you don’t have to have master story anymore to make a serious income trading Forex from trading the one of the greatest markets in the world. If you’ve thought that it’s the markets and there is nothing else to do, think again.
I know so many people that will tell you about all these technical indicators like RSI, Moving Averages, MACD, etc…. But if these aren’t enough, think about the emotional factor that plays in when you choose to trade.
I can name you 5 reasons you will fail at trading Forex based on the market and its emotional factor, I call it:
1. Losing Money
Forex can be a great and easy profit. But the thing is, you have to take the losses when the market is right on your face. It’s the most important lesson you will ever learn!
2. Being too Emotional or moody about a trade
If you are having a bad day or if you are just stressed out about a certain situation, this won’t help you trade like a pro. It’s easier said than done but ask any trader who has been there.
3. Better the Signal than a SINGLE Entre
This one is obvious if you have been around any time to teach at the beginning of my trading days. The rewards of following a simple signal and only executing one move can make a better trading experience than the promise of all 5 of these indicators.
4. You can’t hide your Success from Others
How many times have your friends or others watched you do a trade and didn’t follow? This happens way too often, and I guarantee you it does to some degree. They watch and then copy, and now you’re beat up because they were stolen from you. Don’t be this way! Follow the market, but not someone else.
5. Catering To an Emotional Market
The opportunities in the Forex market are numerous because it’s the most liquid market. This means that very few counter parties exist in this market. And for the most part, the majority of the currency pairs trend and any counterparty to a position comes on board.