In today forex faq, I will answering one question from 2 fellow trader who are still struggling with trading after years of trading.
Below are the questions:
Question 1: I have been trading forex now for more than two years yet not be able to make head ways, what is wrong with me? Pls I really need your help.
Question 2: Dear Mr Lee, I have failed twice in trading forex but I’m not giving up…. I have been learning so much since then, do you have any idea when should I START again and how much should I invest my hard earned money in this business, thank you.
First of all, I will like to praise this reader as he has shown the determination that a successful trader needs to have. Forex trading is not a get rich quick scheme, it is like a real business where you have to spend time to learn and fine tune it until it becomes successful.
Most new traders are lured into this business by advertisement that are filled with hype promising you thousands of dollars per month after the first month of trading.
I do not discount the fact that there are new traders who are making thousands on their first month of trading but it could be due to a lucky trade they have made. I doubt that these people really manage to sustain the results after that.
Below are what I think is very important if you want to become a successful trader one day.
Step 1: You need to get a course that is good and then learn the strategy that it taught you. Having a good trading strategy is very important for a trader. Without a working trading strategy, it is like a carpenter without tools.
Step 2: Please do not use the strategy on a real account. This is one BIG mistake that new traders tend to make. They tend to rush into trading real account. You need to practice the strategy that you have learned on a demo account for at least 3 to 6 months until you have a consistent profit before you trade LIVE with it.
Do note that there is no strategy that wins 100% of the time, in trading losing is part of the game. Most importantly is you have a strategy that has a high risk reward ratio and you simply need to win 60 to 70% of the time to become profitable.
Step 3: Be discipline and start small. After you have a consistent result from your demo account, you can then start a LIVE account with small capital of about $1,000 and then slowly accumulate your capital.
In trading, you have to be patience and do not rush into things.
As for the amount to invest, it depends on your personal ability, you can start with $1,000 and then slowly accumulate your capital. In fact, I have knew a trader who started with $10,000 and accumulated over $200,000 in two years time.
Personally, I think that your problem lies in either your trading strategy or your lack of practice and discipline in executing your trading strategy. I hope that this post can give your some insight about your problem. My personal advice is not to give up.