Do you know that 90% of new traders never made a single cents in trading. To make things worst, most of them even got their hard earned money wiped out by the currency market.
In fact, I got my account wiped out twice in a row when I first started trading forex. Come to think about it now, I have identified 4 main reason why I got my account wiped out which is also the reason why 90% of new traders never made a single cents in trading forex.
In this post, I shall share with you my personal opinion of this issue and list out the 4 main reasons why most people are still struggling in their trading.
1) No Reliable Strategy On Hand
I am surprised to now that there are a lot of new traders who are trading live account without a reliable strategy on hand. What they do is to watch some youtube videos and then trade entire based on the video with their hard earned money.
I am not saying that those strategy that are taught on youtube are not good. What I expected them to do is to try those strategy on a demo account first to see if they work or not.
As a trader, you must have the habit of testing out strategy on a demo account for at least 2 months before you can conclude if it is a good one to trade with.
There are a lot of courses and videos in the market that are produced by marketers who are posing as real traders trying to squeeze some money from new traders. I was once a victim of these people and that is why I am here to convey this message to you guys here on my blog.
No matter what forex courses you decided to take, you must always test out the strategy on a demo account until you are able to make consistent profits on the demo account before you move to live trading.
2) Lack of Discipine
However there are another group of traders who have learned very reliable strategy but they simply can’t stick to the plan when they are trading.
These group of traders are those who are eager for action and are willing to enter trades even when it is not 100% according to their plan.
Entering trades that are not 100% according to your trading plan is like gambling. You are just guessing that the market is going to move in a particular direction and then enter a trade.
I am once such a trader and I understand the damage it can do to your trading account. Therefore my personal advice to those of you who are serious about becoming a professional trader is to train your discipline on a demo account.
This is where you will learn how to control your emotion in trading and stop yourself from entering trades that are against your trading plan.
3) Lack of Practice
If you have been reading my forex blog, you will know that I emphasize a lot on practicing and that is why my Forex Street University Course comes with a 3 days interval between each module. It is to give you the time to practice what you have learned from me.
By watching the videos in my course is not enough, you need to practice them in order to be able to execute the strategies like me. I can give the course to 2 person and you will find that both of them may get different results.
This is because everyone of us execute a strategy differently and at the beginning is mainly due to own judgement. It is only through practicing where you will be able to eventually enter a trade at the correct point.
This is the same as Mathematics, you will not be able to score in the exam simply by memorizing the formulas. You will need to practice those formulas on assessment books so that you will know when to use which formula in the exam.
Therefore practicing plays an important role in your journey to becoming a profitable trader.
4) Lack of Patience
I remember that I have this habit of course hopping when I am new to trading. I took up a course and then put the strategy into practice. Once I have a losing trade, I started to lose faith in the strategy. However the lose itself could be due to my inability in executing the strategy.
As a trader, you must understand that losing is simply part of the game. As long as your strategy is proven to work for years, you will not be bothered by those few losses every month. You know that you will be profitable at the end of the month.
What I meant by lack of patience here is that new traders tend to give up on a strategy once they see a losing trade.
What I suggest you to do is to try the strategy out for at least 2 to 3 months before you do any conclusion.
The above are 4 factors that I believe are what new traders are lacking in and that is why they are still struggling in their trading today. So try to overcome them and you will realize that you have became a better trader.
Do feel free to give your comment below as it will be very valuable to other traders here in this blog.
For those of you who are currently in any forex courses, I will suggest that you focus on learning it and then put it to practice on a demo account before trading live. Please refrain from getting into my Forex Course as I do not want you to get into the problem of information overload.
I understand that a lot of you have been very cautious when looking for a forex course as there are a lot of lousy courses that are created by marketers trying to make money from those of you who are interested in trading. These people are not real traders and this explains why those strategies that they teach do not work. In fact, I have purchased several low quality courses when I am new to trading and therefore I understand your concern. You can take a look at my course but do not rush into buying it, have a feel of the way I teach in those articles and videos in this blog before you decide if this course is for you.
For those of you who are not in any forex course and are still struggling in your trading, you can take a look at my Forex Course below
If you will like to learn how to trade from me, you can take a look at my Forex Street University Course below
If you will like me to trade your account for you and help you recoup back your previous losses or help you grow your trading account, you can take a look at my Forex Signal Service below